Aladdin Oil & Gas Company ASA (AOGC) has renewed licenses in Ukhta. Gas production has been temporarily suspended to allow replacement of a valve and a wellhead. Field development plans have been approved in Orenburg.

In Ukhta, AOGC was granted a production license earlier this year for the gas field covered by the MS license, which is valid until 2030.

The exploration license for the rest of the MS block, which was to run until 30 July 2010, has been extended until the end of 2011. AOGC has been allocated the following work schedule for the period:
- 200 km seismic.
- 250 km reprocessing of seismic, including the above 200 km.
- Drilling of four wells.

Gas production has been temporarily suspended to allow necessary adjustments to be made, including the replacement of a valve and a wellhead. AOGC is also using this time to prepare gas well no. 2 for production. The facility has functioned very well during the running-in period, experiencing no significant problems with the imported Canadian equipment.

As regards gas well no. 3, AOGC will attempt a squeeze job, as cementing the well is proving to be problematic. If the attempt is successful, well no. 3 will be ready for production in Q3. Work on starting up well no. 2 and well no. 3 has been delayed by AOGC’s challenging financial position.

AOGC is planning to drill prospect 20, located just south of the gas field, as soon as financing is available.

In Orenburg, field development plans have been approved for the Nikiferovskoye and Voinskoye licenses, both of which are production licenses. Nikiferovskoye is continuing to produce between 200 and 250 barrels per day from well no. 91 and well no. 61. Plans have been prepared to convert well no. 83 into a water-injection well, as production experience gained during the past year indicates that injection is needed to develop the field and ensure a high recovery rate. The fraccing program has been suspended due to a lack of financing.

The first planned activity when financing allows it is to sidetrack well no. 96 under the Voinskoye license. A new horizontal well in the same field is the next step.

It is expected that production in Orenburg can be stepped up rapidly as soon as investment can be commenced.

For mer informasjon, vennligst kontakt
COO Espen Glende (+47 90 60 54 34)

Aladdin Oil & Gas Company ASA is a Norwegian based exploration and production company, head quartered in Oslo, with its shares traded on the OTC list under the ticker code AOGC. The company owns the Russian oil company OOO Geotechnologia which holds two licenses in the Timan-Pechora province in Northwest Russia, as well as 6 licenses through our companies ZAO Orneftegaz and OOO Veselovskoye in the Orenburg area.