(Oslo, 21 August 2008): Aladdin Oil & Gas Company ASA has entered into a binding letter of intent, with a foreign investor group regarding an private placement of 14 million shares at NOK 9,75 per share. The proceeds will be used to strengthening the company’s working capital, and to acquire three additional licenses in the Orenburg area, whereas one already is in production.

-The binding letter of intent with the foreign investor group is a milestone for Aladdin, and makes it possible to increase the activity level on our present licenses. The private placement will also give the company more competence, and makes it possible to acquire three more licences in Orenburg as noticed May 3, says CEO Hans-Axel Jahren.

According to the agreement the new shareholders will own around 40 percent of the company after the private placement, and the new shareholders will also get two representatives at the board of directors. The deal also includes a goal to be listed on the Oslo Stock Exchange during the first quarter of 2009.

The private placement is conditioned upon approval from the Aladdin Oil & Gas Company’s extraordinary general meeting. The notice of the extraordinary general meeting was today sent to the company’s shareholders, and was published on the company’s web page. The new shareholders and the management in Aladdin Oil & Gas Company will during the extraordinary general meeting, present more information about the development of the company’s licenses, in addition to the plans of acquiring even more licenses.

Fondsfinans has acted as Aladdin Oil & Gas’ financial adviser on the transaction.

For further information, please contact:
CEO Hans-Axel Jahren in Aladdin Oil & Gas Company ASA on (+47) 90 07 08 73

Excecutive Chairman of the Board Einar Askvig in Aladdin Oil & Gas Company ASA on (+34) 666 508 510

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.