Ukhta:

The 3rd gas well 7VDE has been connected to the pipeline and is currently producing around 25-30000m3/day.

As previously announced the gas wells 4VKD and 5LK have been shut in since June due to  pipeline maintenance carried out by pipeline operator. Water is accumulating in the wellbore which has to be removed prior to starting up the wells. A squeeze job has been carried out on well 5LK to isolate lower water zone and reduce the water inflow caused by bad cement. However during the operation the packer got stuck and work is ongoing to remove the packer now. The Company will announce the result as soon as any conclusion is made.

51km seismic have been completed in Ukhta. The seismic survey is expected to start again during December when the ground is frozen. The 51km along with 250km old 2D seismic is being processed currently.

Preparation work is being carried out on well 10a. The spudding of the well 10a is expected to be carried out after the drilling rig becomes available following the workover and squeeze operations on wells 4VKD and 5LK.

Orenburg:

The wells 61 and 91 on Nikiferovskoye field have a stable production of 150-200 bopd combined.

The 250km 2D seismic shot in 2011 is still being processed and interpreted. The preliminary view supports the presence of several prospects including around wells 35,56,54.

Oslo:

TRACS has been hired to carry out reserves audit of all licenses held by the Company including Veselovskoye license which has not been audited earlier.

The Company also expects to publish H1 figures for 2011 mid December.

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.