Aladdin Oil and & Company ASA have signed a Memorandum of Understanding with the shareholders of CJSC Gazinvest, for a possible purchase of all the shares in CJSC Gazinvest.

CJSC Gazinvest is a company located in Ukraine and holds three onshore licenses in western part of Ukraine. There is current gas production and a program in place for increasing the capacity. These oil & gas onshore licenses cover 3 areas (598 sq.km) in the Ivano-Frankivsk, and the Chernivtsi regions (Carpathian Hydrocarbon Basin). These licenses are located next to (1,5 km away) where Chevron has a 2,000 sqkm license. In 2012, Gazinvest commissioned an independent appraisal with Gazprom Promgaz. The appraisal Gazprom Promgaz have made is 29 MMcm were classified as P1+P2 Reserves, and 2,6 BNcm were classified as P3 Resources.

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At the current moment, there is a strong political support by the Government of Ukraine to increase domestic production of oil and gas. There are also indications from the Government of Ukraine that there is willingness to expand the Gazinvest's License area with 50%; thus becoming about 900 sq.km.

Aladdin is in discussions with the European Bank for Reconstruction and Development (EBRD), regarding the potential funding of this acquisition. Indications are that EBRD has a current focus on funding Ukrainian projects.

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For further information, please contact:

John E. Skajem, CEO 
Email: john.e.skajem@araca.no
Phone: +47 4188 7412