(Oslo, 16th June 2008). Aladdin Oil & Gas Company ASA has completed the first part of the testing of the latest gas well on the MS-license in Timan-Pechora. The test results so far are promising and show excellent production properties.

The well (MS 1C) has been drilled to total depth and has encountered gas bearing zones of approximately 20m; 658-668m, 669-678m, 682-685m. A 2m zone in the upper part of the 669-678m interval has now been tested with the following results:

9mm choke – FTHP 52 kg/cm2, rate 62,000m3/day, corresponding to approx. 375 boe

12mm choke – FTHP 46 kg/cm2, rate 96,300 m3/day, corresponding to approx. 575 boe

Testing of the well will be done in two parts, the first in the lower zone which is now tested. The results are encouraging and a rate of around 96,000 m3/day from only a 2 metre thick interval is promising and indicates a significant potential from perforation of the entire zone.

The upper interval (658 – 668m) will now be tested and the results are expected in the near future.

- The company expects a netback of around 8-10 USD per boe, this means that we will get a substantial production and revenue contribution when all 4 planned wells are put on stream. Furthermore, it has been decided to increase the gas price with 25-40% per year over the coming years, and this will directly affect our bottom line. There is now considerable excitement related to the testing of the upper and thickest zone in the gas well, says Espen Glende in Aladdin Oil & Gas Company.

A pipeline which can transport the gas deliveries is located a few hundred metres from the wells, and Aladdin is making good progress with the project to connect the gas production wells together with Gazprom’s local subsidiary; KomiRegionGaz.

For further information, please contact:
Espen Glende, CEO of Aladdin Oil & Gas Company ASA, telephone (+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 licenses in the Timan Pechora province in northwest Russia. Aladdin also owns the company ZAO Orneftegaz in the Orenburg area.