Baltic Oil Terminals Raises Funds for Privolny Drilling

Baltic Oil Terminals PLC, the owner and operator of oil transshipment terminals in Kaliningrad and exploration assets in the Kurgan region of Western Siberia, said that the resolutions proposed at the company's EGM held Monday relating to the placing of new ordinary shares were duly passed by shareholders.

A total of 4.2 million new ordinary shares of 1 pence each have been placed with institutional and other investors on behalf of the company by Arden Partners plc at a price of 200p per share, which represents a premium of 1 percent. to the mid-market closing price of the company's ordinary shares on 2 November, being the last dealing day before the date of the proposed placing announcement.

Total funds raised for the company from the placing are £8.4 million, before expenses.

Dealings in the new ordinary shares are expected to commence at 8am on Tuesday, 28 November. Following admission of the new ordinary shares to trading on the AIM market, the Company will have 47,647,821 ordinary shares in issue.

Simon Escott, CEO of Baltic Oil Terminals PLC, said,

"Following encouraging 2D seismic data, which matched our geochemical results and showed two robust drilling prospects in the northern section of our Privolny license block, we now have the funds to drill. To date, we have done all we can to add value and de-risk the acreage at Privolny, with drilling now being the most logical option to add further value for our shareholders. We look forward to the results of the first well, which are expected to be announced in Spring 2007.

"Meanwhile at Kaliningrad, we are now about to receive gasoline and gasoil for transshipment and have contracted revenues going into next year."