Badger Explorer ASA - Signs 3-year development agreement with ExxonMobil

Badger Explorer ASA has signed a 3-year development agreement with
ExxonMobil Exploration and Production Norway AS, whereby the oil company
will sponsor the Badger Explorer Demonstrator Program for the period
2012-2014. The objective of the Demonstrator program is to move Badger
technology from the prototype stage to a viable and robust commercial
product, the Badger 125 (BE125).

"We consider the fact that the world's largest oil company becomes our
sponsor to be very significant. Badger Explorer has passed a number of
important technological milestones in 2011 and come several steps closer
to our first commercial service. ExxonMobil's continuing participation
is an important factor in the ongoing development process, "says David
Blacklaw, CEO of Badger Explorer ASA.

The Development Agreement represents the formal start of the Badger
Demonstrator program. This will initially establish a design basis for
the next generation tool, the BE 125, where lessons learned from
prototype project will be implemented. The project management,
construction and testing of the BE 125 will be derived from this design.
A significant part of the Demonstrator program will be to develop and
configure commercial applications, such as sensors and instrumentation
that can identify hydrocarbons, and be used for long-term reservoir
monitoring and management.

In addition to financial contribution to the program, ExxonMobil shall
provide support in the form of technical, geological and administrative
expertise, and also assist in finding suitable onshore or offshore
locations for field pilots and to provide operational assistance to the
occasion.

According to the Agreement, Badger Explorer ASA will be awarded funds
upon reaching development milestones. ExxonMobil's financial
contribution will amount to NOK 9 million in total; the first
installment being made upon entering into the agreement.

Other contributors to the Demonstrator Program will include Innovation
Norway (whose NOK 20 million award was announced in the press release of
23 November 2011) and other oil companies. Negotiations with other oil
companies are ongoing and the company aims to have four to five program
sponsors in total.

In addition to the implementation of the Demonstrator program during the
period 2012-2014, Badger Explorer aims to deliver the first field pilots
on a commercial basis. These deliveries are the subject of a separate
project, in which the Research Council of Norway has awarded support
totaling NOK 8 million (see announcement on 16 November 2011). The
company is currently negotiating the delivery of the first field pilot.

The Agreement with ExxonMobil, in conjunction with the awards by both
Innovation Norway and the Research Council of Norway and other
anticipated agreements, provides for maintenance of the company's high
level of activity over the next three years.

Stavanger, 12 December 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