(Oslo, 18 May 2009) Last Friday, the Aladdin Oil & Gas Company ASA (AOGC) concluded an agreement to purchase five new licences in the Orenburg region of Russia. The licences are production licences covering 13.9 million barrels of 2P SPE-certified reserves.

AOGC has purchased and taken over five new licences in the Orenburg region. There are 13.9 million barrels of 2P reserves in total, of which the P1 reserves make up 6.6 million barrels. All of the licences relate to sandstone reservoirs with good porosity and permeability. The total price for the licences is USD 3 million in the form of USD 2 million of debt and USD 1 million in cash. This equates to a price of USD 0.2 per barrel of 2P reserves.
This purchase has been made pursuant to the company’s strategy of purchasing underdeveloped oil licences with large upside potential in the FSU. The company is also reducing its risk, as it now has more licences, covering more reserves. The company now has over 50 million barrels of SPE-certified 2P reserves. The new licences will be developed using the existing organisation in Orenburg.

The company will now review and evaluate the existing wells covered by the licences, and conduct 3D seismological surveys. The results of these activities will form the basis for the preparation of a field development plan. The bulk of the necessary field infrastructure is already in place.
The development of the licences will primarily be financed through Venatino’s equity issue.

A short presentation of the new licences will be given at the company’s ordinary general meeting on 26th of May.