As previously reported, Aladdin Oil & Gas Company ASA has agreed to a private placement by Venatino Trading Limited. Venatino Trading Limited, (VTL) – a subsidiary of Lakeshore International Management Inc, has today paid NOK 6 160 000 for 800,000 shares at a price of NOK 7,70 to an escrow account with Fondsfinans ASA. The first instalment is hereby concluded by VTL. The funds will be released to AOGC subject to the placement being approved by AOGC’s shareholders’ meeting 31st October.

The company also wishes to inform the market about the status of some of the company’s activities;

* AOGC will commence the drilling of the reef structure during November and we are for that purpose in the process of completing a contract with a drilling contractor. It is expected to complete the drilling of the well in January . The company informs that drilling operations using external contractors may take more time than expected.
* Drilling of wells on the gas field will begin as soon as weather and conditions permit. The plan is to complete 2 new gas wells by the end of February 2009. This drilling activity has been delayed primarily due to unfavourable weather conditions.
* Gas deliveries are planned to start at end Q1/beginning Q2 2009. The equipment necessary for gas deliveries will be ordered from a Canadian supplier shortly, according to specifications from GazProm and Russian authorities. Gas delivery equipment will be installed and ready for operations during the winter season 2009.
* On our Orenburg license, sidetrack drilling of wells #34 and #47 will start in the new year. These wells are expected to increase the company’s production on the license significantly. Estimated production from each well is 150 barrels of oil per day.
* The company has previously reported about a non-binding LOI to purchase 3 additional new licenses. Due to turmoil in the financial markets, the prices for resources in Russia has fallen substantially. The company has therefore informed the vendor of the 3 licences that AOGC will re-negotiate the agreement and possibly reconsider the purchase. New and interesting strategic opportunities have opened up in Russia for companies in a secure financial position. Therefore excellent purchases may be concluded, and the current financial crisis may become a positive event in the longer term.

However, the company emphasizes the intent to focus on existing licenses and get the gas on stream as soon as possible, as well as completing the drilling of the reef structure and sidetrack drillings. This to achieve a positive cash flow as previously informed.

For further information, please contact:
Chairman of the board Einar Askvig (+34 666 508 510) or CEO Hans-Axel Jahren (+47 900 70 873)

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 the company ZAO Orneftegaz in the Orenburg area.