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The Company reported today that its primary insiders
have acquired Common Shares, stock options and also
have completed an equity sale to a select group of
institutional and accredited Norwegian and
international investors. The sale consisted of the
issuance of 3,345,000 Common Shares at 23.20 NOK.

Its financial advisors confirmed there was significant
institutional interest from these investors who were
unable to participate in the equity placement
completed by the Company earlier this month. The
placement to fulfill this demand was completed through
the issuance of Common Shares on the exercise of stock
options that were expiring within the next few months.
The advisors believe this transaction provided a
resolution of the expiring options while at the same
time bringing new high quality shareholders to the
shareholder base. As a result of this transaction,
none of the insiders sold any shares from their
existing shareholdings and have added to their
holdings of Common Shares.

Following the exercise of the expiring options, a
total of 5,938,335 options were issued to directors,
officers and employees with an exercise price of $4.03
or 24 NOK. This represents the closing price on the
Toronto Stock Exchange yesterday.

Michael Binnion, President & Chief Executive Officer -
Exercise of 1,205,000 stock options and participation
of 965,000 common shares in placement. Increase in
total number of shares held to 5,945,045 shares Mr.
Binnion, also exercises control or direction over an
additional 5,035,792 Common Shares through Rupert's
Crossing, an investment holding company.
Mr. Binnion was granted 2,005,000 stock options to
bring his total options outstanding to 5,962,500.

Peder Paus, Chairman - Exercise of 800,000 options and
participation of 550,000 shares in placement. Total
number of shares increased to 5,580,925 shares.
Mr. Paus was granted 1,200,000 stock options to bring
his total options outstanding to 3,090,000.

Jason D'Silva, Chief Financial Officer - Exercise of
400,000 options and participation of 300,000 shares in
placement. Total number of shares increased to
2,619,140 shares.
Mr. D'Silva was granted 600,000 stock options to bring
his total options outstanding to 1,750,000.

John Brodylo, VP Exploration - Exercise of 350,000
options and participation of 245,000 shares in
placement. Total number of shares held increased to
784,100 shares.
Mr. Brodylo was granted 400,000 stock options to bring
his total options outstanding to 1,240,000.

Rick Tityk, VP Land - Exercise of 100,000 options and
participation of 100,000 shares in placement. No
change in total shares held at 65,000 shares.
Mr. Tityk was granted 150,000 stock options to bring
his total options outstanding to 900,000.

Peter Coldham, VP Engineering - Exercise of 100,000
options and participation of 100,000 shares in
placement - No change in total number of shares held
at 100,000 shares.
Mr. Coldham was granted 150,000 stock options to bring
his total options outstanding to 835,000.

Russ Hammond, Director - Exercise of 200,000 options
and participation of 200,000 shares in placement - No
change in total number of shares held at 0.
Mr. Hammond was granted 250,000 stock options to bring
his total options outstanding to 732,500.

Maria Rees, Corporate Secretary - Exercise of 375,000
options and participation of 374,165 shares in
placement - Increase in total number of shares held to
655,235 shares.
Ms. Rees was granted 425,000 stock options to bring
her total options outstanding to 1,405,000.

Bjorn Inge Tonnessen, Director - Exercise of 70,000
options and participation of 70,000 shares in
placement - No change in total shares held at 5,000 shares
Mr. Tonnesson was granted 50,000 stock options to
bring his total options outstanding to 500,000.

Ian Nicholson, Manager -- Exercise of 150,000 options
and participation of 150,000 shares in placement - No
change in total shares held at 156,200 shares
Mr. Nicholson was granted 50,000 stock options to
bring his total options outstanding to 525,000.

Les Beddoes, Director -- Exercise of 58,335 options
and participation of 58,335 shares in placement - No
change in total shares held at 452,080 shares
Mr. Beddoes was granted 108,335 stock options to bring
his total options outstanding to 488,753.

Paul Harrington, VP Finance was granted 100,000 stock
options to bring his total options to 340,000.

Pat Quinlan, Director was granted 50,000 stock options
to bring his total options outstanding to 300,000.

Pierre Boivin, Director was granted 50,000 stock
options to bring his total options outstanding to 465,000