Aladdin O&G Uncovers Hydrocarbons at Orenburg's Bogdanovskaya License

Aladdin Oil & Gas has during the drilling of an exploration well (#101) revealed a petroleum system in a reef structure. A 6m column has been encountered with clear indications of hydrocarbons.

Aladdin Oil & Gas acquired 3D seismic on the Bogdanovskaya license early last year, and during the interpretation a possible reef structure was identified. The company decided that it wanted to drill this structure, and a well was spudded on it December 24, 2008. The well is planned to be drilled to 950m, and the top of the reef was expected around 650m depth.

During drilling of the well several smaller gas pockets were encountered, indicating an underlying petroleum system, which was confirmed when the top of the reef was penetrated at approximately 650m depth last week. It then became clear that parts of the reef contain limestone/dolomite which may be of reservoir quality at the 651-657m interval, which in addition have indications of containing hydrocarbons; oil and gas.

Relatively heavy mud was used during the drilling to prevent possible blowouts as well as to avoid dissolution of thick salt intervals. Still both oil and gas were observed in the drilling mud during the drilling at 651-657m.

The well will be drilled to the planned TD of 950m, and is currently at 698m depth. The company hopes to find further hydrocarbons as the drilling proceeds. The well is expected to be at TD in a week's time.

Analysis of the electric logs will decide what intervals can be tested, before any commerciality of the discovery can be considered.

"This is another significant milestone for the company. Great expectations have been attached to the drilling of this prospect," said CEO Hans-Axel Jahren.