(Oslo, 14th February, 2011) Aladdin Oil & Gas Company ASA has started to drill a gas production well on the MS license in Ukhta.

Ukhta

Gas well 7 VKD has been spudded and is currently drilling at 360 m.  The drilling is expected to last until the end of February when the testing program starts. Based on the test results the well will be tied-in to the gas treatment unit. The production from this well is expected late Q2/earlyQ3. The company will inform when TD is reached (planned 730 m) and the logs have been received.

The well site 29U is being prepared for drilling on the WU license. The location is in the south east corner of the field where the wells 16; 17; 20 and 31 discovered oil earlier. The drilling will take place in 2 phases where the first phase will be to drill to 200 m. to just above the reservoir. The second phase will be to drill through the reservoir, this is expected to take place during the summer, back to back for all 3 shallow oil wells included in 2011 work program

The 2D seismic program (200 km) on the Middle-Sedelskoye license is scheduled to start late February.  The seismic crew has started to mobilize.  The results of the interpretation are expected in Q3.

Gas production is stable at around 120.000-140.000 m3/day.

Orenburg

The seismic program on the Veselovskoye license area (200 km) has started and is scheduled to be completed in February. As of today 140 km of seismic survey has been completed.  The interpretation is expected to be ready during Q2.

Well 96 (Voinskoye field) VSP preliminary results indicated that the crest of the structure is different to previously mapped. The side-track plan will be updated as well as the reserves figures.

The well 304 (Besedinskoye field) VSP program is being finalized and is expected to take place during February and the results are expected in late March.

The work-over program for wells 35; 54 and 56 (Veselovskoye license area) is being finalized. The company is sourcing a rig to perform the job. The work is expected to start during March.

Oil production is stable at around 150 bopd.

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 three licenses in the Timan-Pechora province in Northwest Russia, as well as 5 licenses through our company OOO Veselovskoye in the Orenburg area.