Exercise of employee share options in Badger Explorer ASA ("Company")

Participants in the Company's share option program have on 4 March 2011
exercised a total number of 73 249 options out of 135 747 exercisable
share options. Following the share option exercise the Board of
Directors has, pursuant to authorization granted by the Company's Annual
General Meeting on 21 April 2010, resolved to increase the Company's
share capital from NOK 2 304 880 to NOK 2 314 036 by issuing 73 249 new
shares at a par value NOK 0.125.

Following the increase the Company's share capital will be NOK 2 314 036
divided into 18 512 289 shares.

The pre-emption rights of existing shareholders have been waived to be
able to carry out a share incentive scheme for the Company's employees.

The share capital increase will be registered in the Norwegian Register
of Business Enterprises (Foretaksregisteret) as soon as practically
possible.

1. Options exercised by primary insiders on 4 March 2011

· Gunnar Dolven has exercised 8 333 options in the Company,
corresponding to 8 333 shares at the strike price of NOK 10.00.
· Kjell Erik Drevdal has exercised 20 000 options in the Company,
corresponding to 20 000 shares at the strike price of NOK 10.00.
· Hege Furland has exercised 8 333 options in the Company,
corresponding to 8 333 shares at the strike price of NOK 10.00.
· Wolfgang Mathis has exercised 5 000 options in the Company,
corresponding to 5 000 shares at the strike price of NOK 10.00.

2. Transfer of rights
On 4 March 2011 the primary insiders mentioned below transferred their
rights to receive shares resulting from the exercise of options to a
third party. The sales amount will be finally determined on the basis of
the price subsequently obtained by the third party when selling the
shares in the market. Still, primary insiders cannot be held liable for
losses incurred by the third party if the shares are later sold below
the strike price. Final compensation for the transferred rights will be
reported to Oslo Børs when known.

· Gunnar Dolven has transferred 8 333 rights
· Kjell Erik Drevdal has transferred 20 000 rights
· Hege Furland has transferred 8 333 rights
· Wolfgang Mathis has transferred 5 000 rights

3. Purchase of shares

On 4 March 2011 the primary insiders mentioned below entered into an
agreement to use part or all of the compensation mentioned in item 3 to
purchase shares. When known, the final number of shares, along with the
compensation, will be reported to Oslo Børs.

· Gunnar Dolven

4. New holding

After exercising options, Gunnar Dolven holds 16 667 unexercised options
in the Company, corresponding to 16 667 shares at the strike price of
NOK 10.00. As of today the primary insider holds 309.872 shares in the
Company.

After exercising options, Kjell Erik Drevdal holds 55 000 unexercised
options in the Company, corresponding to 55 000 shares at the strike
price of NOK 10.00. As of today the primary insider holds 232.600 shares
in the Company.

After exercising options, Hege Furland holds 16 667 unexercised options
in the Company, corresponding to 16 667 shares at the strike price of
NOK 10.00. As of today the primary insider holds 2.858 shares in the
Company.

After exercising options, Wolfgang Mathis holds 10 000 unexercised
options in the Company, corresponding to 10 000 shares at the strike
price of NOK 10.00. As of today the primary insider holds 2.100 shares
in the Company.

Stavanger, 4 March 2011

For further information, please contact:
Kjell Erik Drevdal, CEO, cell phone 0047 916 43 552, office 0047 52 97
45 15
Gunnar Dolven, CFO, cell phone 0047 908 53 168, office 0047 52 97 45 40