Badger Explorer ASA - Exercise of Employee Share Options in Badger Explorer ASA

Badger Explorer ASA - Exercise of Employee Share Options in Badger
Explorer ASA

On 7 May 2011 participants in the Company's share option program have on
exercised a total number of 16 666 options. Following the share option
exercise, the Board of Directors has resolved to increase the Company's
share capital from NOK 2 314 036.125 to NOK 2 316 119.375 by issuing 16
666 new shares at a par value NOK 0.125.

After the share increase the Company's share capital will amount to NOK
2 316 119.375 divided into 18 528 955 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 7 May 2011
Erling A. Woods has exercised 8 333 options in the Company,
corresponding to 8 333 shares at the strike price of NOK 10.00.

2. Transfer of rights
On 7 May 2011 the primary insider mentioned below transferred his 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 the primary insider 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 Stock Exchange when known.

Erling A. Woods has transferred 8 333 rights.

3. Purchase of shares
On 7 May 2011 the primary insider mentioned below entered into an
agreement to use part or all of the compensation mentioned in item 2 to
purchase shares. When known the final number of shares along with the
compensation will be reported to Oslo Stock Exchange.

Erling A. Woods

4. New holding
After exercising options Erling A. Woods 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 1000 shares in
the Company.

Stavanger, 9 May 2011

For further information, please contact:
Kjell Erik Drevdal, CEO, cell phone +47 916 43 552, office +47 52 97 45
15
Gunnar Dolven, CFO, cell phone +47 908 53 168, office +47 52 97 45 40