Aladdin Oil & Gas Company ASA has signed a loan extension and facility increase agreement with Waterford Finance & Investment Ltd.  Waterford Finance &Investment Ltd is the largest shareholder in Aladdin Oil & Gas Company ASA holding approximately 40% of the outstanding shares.

Initial loan of $7.6 million was increased by $2.9 million, interest rate remains at 16% and expiration date extended to February 2014. The loan principal and accumulated interest can be converted into Aladdin shares at conversion price of NOK 0.25 on Waterford demand. The funds will be spent on approved 2013 work program designed to increase production of oil and gas.

The 2013 work program in Orenburg consists of preparation of water injection plans on Nikiforovskoye field. The work program in Ukhta includes drilling of 2 production wells.

Operational update. January 2013.

Orenburg

January oil production reached 6 804,5 bbl, that is 100,1% of the plan. Three wells are in production. Works of licenses prolongation of Besedinsky and Veselovskiy blocks are in progress.

Ukhta

January gas production reached 23 107,7 boe, that is 153% of production plan. Four wells are in production.  According to work program, Geotechnologia spudded well #14 on Sredne-Sedelskiy license block on February 5th. Drilling to target depth will take approximately three weeks.

Total Aladdin production in January is 29 912 boe, that is 137% of production plan.

The combined production for the group is stable around 1000 boepd.

The Chairman comments:

“I am pleased by the biggest shareholder continuous support of the Company. Extending the loan maturity and securing funding for 2013 investment program was vital for Aladdin’s future. This should allow further increase of production of both oil & gas throughout 2013.”

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