Badger Explorer ASA (BXPL) releases its 1Q 2013 Report today. The
investor presentation in Oslo will take place at Hotel Continental on
Wednesday, 22th May 2013 at 13:00 - 14:00 CET. The investor presentation
in Stavanger will take place at Badger Explorer ASA's premises at
Forusskogen 1, 4033 Stavanger on Thursday, 23th May 2013 at 09:00 -
10:00 CET.
During 1Q 2013 Badger Explorer ASA has established stronger strategic
sponsorship group for the Badger Demonstrator Program, now consisting of
ExxonMobil, Statoil, Chevron and Wintershall. This program represents
the technical focus of the Company for the rest of the year. The
steering committee has been expanded with two new sponsors for the
program, Chevron and Wintershall. The focus of the steering committee is
to guide the Milestone program based on the development of the tasks
defined in the Badger Demonstrator Program Agreement. Milestone 2, which
has been completed and approved in 1Q 2013, released a further
installment of the sponsorship funding. The development work is now
focused on the completion of the Beta Version of the Badger tool, which
represents most of the deliverables for Milestone 3, and is planned to
be ready for testing during the second half of the year 2013.

In parallel with the development activities, BXPL and the sponsors
continue early discussions regarding the Field Pilot test phase and
focus on optimizing the selection of Field Pilot targets and definition
of specific objectives. Field pilot test sites have been investigated,
including some which are close to BXPL's facilities in Norway. They will
substantially reduce both the time and cost required of conducting field
operations.

The main funding sources for 2013 will be the expanded sponsorship,
possible Calidus sale and release of the public grant, awarded from
Innovation Norway and Research Council of Norway. Stringent cash
management continues to be a priority.

Cash flow in 1Q 2013 totaled -757 kNOK compared to net change in cash
flow of -7.6 MNOK in 1Q 2012.

Summarizing the 1Q 2013 financial results for the Badger Explorer Group
(including 75%-owned Calidus Engineering Ltd.):

Revenues for 1Q 2013 amounted to 1,736 kNOK (3,610 kNOK for 1Q 2012)

Operating expenses for 1Q 2013 were 6,384 kNOK (7,569 kNOK for 1Q 2012)

EBITDA for 1Q 2013 was -4,648 kNOK (-3,959 kNOK for 1Q 2012).

The development work in 2013 is focused on completing tool design,
testing, building of the Badger Explorer Demonstrator tool and preparing
for the upcoming Field Pilot phase. The achievements of the previous
quarter are in line with this goal. A stronger sponsors group, possible
sale of Calidus and release of public grants secure funding for 2013.
Furthermore, technical deliveries and increased focus on technical
progress are the basis for achieving performance targets set in the
Badger Demonstrator Program.

Stavanger, 16th May 2013
For further information, please contact:
David Blacklaw, CEO, cell phone +47 406 44 010, office +47 52 97 45 50
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40
www.bxpl.com