Aladdin Oil & Gas Company ASA (AOGC) and Lakeshore International Inc. have today agreed a new size, price and structure of the transaction which will provide approximately NOK 155 Mill. to AOGC.

As previously reported, there will be a private placement of 13 953 943 shares at NOK 9.75 to Lakeshore’s Cyprus subsidiary; Venatino Company Ltd.
Due to the instability in the financial markets, the parties have agreed to a new size, price and structure of the transaction, in which Aladdin Oil & Gas Co. will issue a total of 20 102 153 new shares at NOK 7.70. This will provide AOGC a total of approximately NOK 155 Mill.
Venatino will own 49% of the company after the transaction.

According to the agreed payment plan the transaction will take place in three phases; the initial payment for 800 000 shares will take place immediately to an escrow account with Fondsfinans ASA. The second payment for 4 800 000 shares will take place on 17th November 2008. Third and final payment for 14 502 153 shares will take place on 15th January 2009.

The transaction and payment plan is contingent upon approval by the board and extraordinary shareholders’ meeting in AOGC. An extraordinary shareholders’ meeting will take place as soon as possible.

The new payment plan will not represent any changes in AOGC’s level of activity or investments.

- In light of the prevailing conditions in the financial markets we are pleased with the negotiated terms. The agreement secures the company substantial new capital, and provides the company with means for further activity and expansion” says chairman of the board Einar Askvig.

Fondsfinans ASA is the company’s financial advisor.

For further information, please contact:
Excecutive Chairman of the Board Einar Askvig in Aladdin Oil & Gas Company ASA on (+34) 666 508 510

CEO Hans-Axel Jahren in Aladdin Oil & Gas Company ASA on (+47) 90 07 08 73

Aladdin Oil & Gas Company ASA is a Norwegian-based E&P company headquartered in Oslo, and listed on the OTC listing of the Norwegian Securities Dealers Association under ticker code AOGC. The company owns the Russian oil company OOO Geotechnologia, which holds two licences in the Timan Pechora province in northwest Russia. Aladdin also owns the company ZAO Orneftegaz in the Orenburg area.