Aladdin Approves Private Placement
The Extraordinary General Meeting of Aladdin Oil & Gas Company ASA approved the NOK 136.5 million private placement toward the Swiss management company Lakeshore International Management Inc. The transaction enables the company to accelerate the E&P program and to acquire three additional licenses in the Orenburg area.
"The agreement is an important step in the further development of Aladdin Oil & Gas, enabling an increased activity level on our present licenses and providing the company with a strengthened strategic position. Further, Aladdin Oil & Gas will immediately initiate a process to ensure listing on the Oslo Stock Exchange during the first half of 2009," said Chief Executive Officer, Hans-Axel Jahren.
Venatino Trading Ltd. is a subsidiary of Lakeshore International Management Inc. with key investments in the oil and gas industry. Following the binding Letter of Intent, Venatino Trading Ltd. will hold 40 percent of Aladdin Oil & Gas after the private placement, with an option of acquiring additional 9 per cent of the company at NOK 11.00 per share.
The proceeds from the private placement, approximately USD 25 million, will be used to acquire 80 per cent of three additional licenses for USD 14 million.One of the licences already is in production and produces approximately 200 barrels of oil per day. The licenses are located in the Orenburg area in which Aladdin already is active. The 2P reserves, are estimated at 14 million barrels of oil equivalents. The remaining
proceeds will be used to increase the level of activity in Orenburg and Uktha.
"Aladdin Oil & Gas is an important investment for Venatino Trading," he added. "We have confidence in existing management and the knowhow in the company. We are planning to create a fast growing independent oil and gas company with an international investor base and strong corporate governance. In addition we find it compelling that Oslo Stock Exchange is recognised as an efficient market place for emerging oil companies, says Mr. Rudolf Stäger, Chairman of the Board in Lakeshore International Management Inc."
The agreement is targeted for closing at September 25th 2008.
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