BADGER EXPLORER ASA - 3Q 2011 Report

BADGER EXPLORER ASA - 3Q 2011 Report

Badger Explorer ASA ("BXPL") releases its 3Q 2011 Report today. BXPL's
3Q 2011 investor presentations will take place at the Hotel Continental
in Oslo at 11:00 CET today, and in Stavanger at the Company's premises
at Forusskogen 1 at 09:00 CET on Thursday, 27 October. The presentations
will be given by the new Company CEO David W. Blacklaw and the CFO
Gunnar Dolven.

Badger Explorer ASA has passed several milestones during the third
quarter of 2011, and the Company is now moving its focus to the first
commercial use of the Badger Explorer ("Badger") tool. The successful
proof of concept enables the Company to apply more concentrated efforts
on engineering, reliability, applications development and product
launch. The Company has implemented some internal re-structuring to
reflect this change in focus. This quarter, management's attention will
prioritize securing additional financial sponsorship for this new phase,
and detailed specification and design of commercial applications to be
conveyed by the Badger tool.

The Badger Explorer Group's gross cash reserves amount to MNOK 49.8 as
of 30 September 2011. Cash flow in 3Q 2011 totaled MNOK -13.1 compared
to MNOK -16.6 in 2Q 2011. The cash spending for 4Q 2011 will be lower.
Summarizing the 3Q and YTD financial results for the Badger Explorer
Group (including 75%-owned Calidus Engineering Ltd.):
Revenues amounted to kNOK 1 850 for 3Q 2011 and kNOK 7 837 as of
30.09.2011 (kNOK 3 315 for 3Q 2010 and kNOK 6 327 as of 30.09.2010);
Operating expenses for 3Q 2011 were kNOK 10 867 and kNOK 28 457 as of
30.09.2011(kNOK 8 421 for 3Q 2010 and kNOK 19 935 as of 30.09.2010);
EBITDA for 3Q 2011 was kNOK -9 017 and kNOK -20 620 as of
30.09.2011(kNOK -5 107 for 3Q 2010 and kNOK -13 608 as of 30.09.2010).

Badger Explorer ASA has now entered the Badger's commercialization
phase. Management has been strengthened to support the Company's
continuing development, and to enable a much more focused, operational
modus operandi for future activities. The development of specific
applications will help establish a substantial and achievable market for
the Company. The Company aims to define the first application, and to
secure an agreement with a major oil company for the Pilot Project as
soon as possible.

As the Company embarks on this new phase in its development, the support
and confidence of the Company sponsors and partners through the third
quarter strengthen the positive outlook for the Company.

Stavanger, 26 October 2011

For further information, please contact:
David W. 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