Aladdin Oil & Gas Company ASA (the “Company”) is pleased to announce that the 2012 Work Program (the “Program”) has been completed.

Timan Pechora Basin: 

During the year 2012, the Company has drilled two wells on the Middle Sedyelskoye exploration block in the Timan Pechora region of the Russian Federation. Exploration Well-10 having reached its target depth has encountered no commercial gas flows. The well has been plugged and abandoned, and the drilling information and test data will now be interpreted to help to determine any further operations to be undertaken by the Company on the structure.

Well-12 has been drilled and connected to the pipeline, having commenced production on the 28th of November, 2012 with the initial production rate of 180 boe/d of gas. The positive start of the production from Well-12, is expected to help to stabilize production from the structure, with the Company’s current production at Ukhta region standing at just above 700 boe/d.

Preparations are being made to drill exploration wells 14 & 15 at Malo Sedyelskoye license in the near future, with expected start of production in Q2 2013.

Volga Urals Basin: 

In Volga Urals region of the Russian Federation, the Company has drilled two sidetracks during the year 2012. On Voinskoe field, sidetrack of the Well-96 has been completed, and is currently producing oil at a rate of 20 bbl/d.

On the Nikiforovskoye field, a sidetrack of the Well-57 has been successfully drilled to the undisturbed part of the reservoir. The well has commenced oil production in November 2012, and is currently producing at a rate of 150 bbl/d.  Aladdin’s current combined production rate from the Volga Urals region stands at about 300 bbl/d.

On the completion of the work program for the year 2012, Aladdin’s Chief Executive Officer Mr. Alexey Kruzhkov, commented:

“We are pleased to have completed our 2012 work program on time and on schedule. Despite some disappointing results from Well-10 near the city of Ukhta, positive progress has been made with Well-12 as the Company looks to stabilize its production rate from the region. In Orenburg, sidetrack of well 57 has been especially successful. With the Company finishing the year with the combined production rate of over 1000 boe/d we are working towards finalizing our Work Program for 2013, which will be announced in the near future”.

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.