Aladdin Hits Milestone in Russia, Finds Oil on West Uthinskoye License

Aladdin Oil & Gas Company ASA has made an oil discovery on the West Uthinskoye license (WU) in the Timan-Pechora region in Russia. The discovery is considered a milestone in the development of the license.

The WU #17 well in Timan-Pechora will be drilled to a depth of about 250 meters prior to logging and testing. The objective is to start test-production during the first half 2008. The oil-bearing zone is located at a depth of 210 meters. Core samples show a substantial zone with sandstone containing oil.

"Through this discovery we have found a new field. If we conclude that the discovery is commercially viable, we will develop an extensive drilling program of production wells in the vicinity to ensure a speedy build-up to a significant production volume," said Espen Glende, Chief Executive Officer of Aladdin. Glende adds that the wells are quick to drill because they are shallow.

The WU license is approved as a production license, which simplifies the commercialization processes.

Aladdin already produces oil at its license in Orenburg and has previously announced its decision to commercialize a significant gas discovery at the MS license in Uktha.

A scheduled overhaul of all seven wells in Orenburg is ongoing. Plans for the 2008 drilling program are on track and drilling is expected to begin during the summer of 2008.