(Oslo, 22 May 2008) Aladdin Oil & Gas Company ASA reported an operating loss of NOK 6.2 million in the first quarter of 2008, following the investments and operating activities on the company’s Russian licences. The company expects the existing fields in Orenburg to produce 500 to 700 bopd by the end of 2008.

- The first quarter was fairly operational challenging. The workover activities on the test wells in Orenburg are temporary resulting in an unstable production. However, the company is comfortable with the current plan and will continue the well stimulation program, in addition to perform side track drilling from three existing wells, says CEO in Aladdin Oil & Gas Company, Espen Glende.

Aladdin Oil & Gas Company had an operation loss of NOK 6.2 million on the first quarter of 2008, while total licence investments amounted to NOK 14.6 million. After the closing of the quarter, Aladdin Oil & Gas Company completed a NOK 45 million share issue, which will be used to finance the company’s capital expenditure programme. The program includes three side track drillings and three workovers in Orenburg. In Uktha, the company’s gas project is prioritized, in addition to the development of a new field development plan, the drilling of four new wells and the testing of five wells.

- We are satisfied with the development of our operating expenses. We have low investments on the wells we are drilling and on our other production activities. The operating expenses and investments are expected on a similar level going forward, says Glende.

During the first quarter, Aladdin Oil & Gas Company discovered a significant reef structure in Orenburg, potentially containing over 200 million barrels of oil. The recovery rate from similar structures is around 30 per cent. In addition, the company on May 13 entered into a letter of intent of acquiring 80 per cent of four licenses for USD 17.5 million. Different financial and strategic alternatives for the initiative are under evaluation.

- Based on the existing wells in Orenburg, the company expects a production in the range of 500 to 700 barrels per day. In addition, the company is working towards production on the gas field. Finally, the identified reef structure and the letter of intent, give Aladdin the opportunity of further utilizing the existing infrastructure and competence, says Glende.

For further information, please contact:
Espen Glende, CEO, Aladdin Oil & Gas Company ASA on (+47) 906 05 434

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. The company employs around 125 staff and aims to be listed on Oslo Axess in the course of 2008.