Operations update

During Q1 2013 the average daily production from company’s operations in Russia has amounted to 980 boepd. Ukhta gas operations accounted for 740 boepd and Orenburg’s oil production for 240 bopd.

Cumulative oil production for Q1 2013 has amounted to 21 524 bbl, (22 719 bbl planned production), gas production – 66 540 boe (52 262 boe planned production). Total combined production was 88 065 boe with planned 74 981 boe.

The company exceeded its Q1 2013 production target by 17,5%.

During Q1 2013 AOG continued to make good progress in optimizing its cost structure.

Work program update

As part of 2013 work program, well 14A was drilled on the borders of Sredne-Sedyelskiy exploration block in Ukhta. The well has encountered hydrocarbons and proved a working hydrocarbon system extension that will have positive impact on Sredne-Sedyelskiy gas reserves estimate. However, the gas flow level was not commercial and the well will now be suspended pending further data evaluation and decision on location of well 15A and gas pipeline construction.

In accordance with current work program and after completion of work on well 14A, process of extension of Sredne-Sedyelskaya exploration license has been commenced.

Aladdin Oil & Gas Company ASA is a Norwegian based exploration and production company, head quartered in Oslo, with its shares traded on the OTC list under the ticker code AOGC. The company owns the Russian oil company OOO Geotechnologia which holds 4 licenses in the Timan-Pechora province in Northwest Russia, as well as 4 licenses through our company OOO Veselovskoye in the Orenburg area.