Aladdin Oil

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Aladdin Oil Gas Company ASACompany
PresentationThe best from two Worlds- 12.000
bopd i 2012-
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Table of content

• Company background
• Aladdin activities and reserves
• Orenburg operations
• Ukhta operations
• Executive summary
• Appendix

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Investment highlights

• Aladdin Oil Gas has grown from zero to 36.7
  mmboe in 2P reserves in less than two years 1)
• 23.7 mmboe 2P reserves confirmed by 3rd party
  reserve report 1) (Ukhta)
• 13.0 mmboe 2P reserves expected estimate from
  Gaffney Cline report due towards year-end 2007
  (Orenburg)
• Good progress has been made in 2007
• Successful acquisition of ZAO Orneftegaz in 2Q07
• Currently producing from two of seven work-over
  wells in Orenburg
• 3D seismic survey has identified substantial
  upside potential
• Recent gas discovery in Ukhta
• First test result 2,100 mcf/day gas (375
  boe/day) in oil prospective area
• Currently testing second of 15 wells to be
  drilled through 2008
• Well-functioning local organizations with western
  experience and technology
• 10 people employed in Orenburg organization
  independent consultants
• Experienced organization of 75 Russian and
  Western employees in Ukhta
• Targeting cash break-even in 2009 with 3,500
  boe/day production
• Targeting 700-1,000 boe/day production in 1Q08
  from existing work-over wells in Orenburg

• 23.7 mmboe confirmed 2P reserves by independent
  reserve report based on SPE (Oslo Stock Exchange
  standard for reserve reporting). In addition the
  company expects 13 mmboe to be booked as 2P
  reserves by year end 2007.

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Licenses in prospective Russian oil regions

• Timan Pechora (Ukhta)
• GeoTechnologia (GT)
• Middle Sedolskoye (1,000km2)
• Exploration license
• West Ukhtinskoya (200km2)
• Production license
• Orenburg Region
• OrNefteGaz (ONG)
• Bogdanovskaya (63km2)
• Exploration license

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Company overview and structure

• Norwegian based EP company with operations in
  Russia
• Holding company listed on Norwegian OTC list
  (AOGC)
• Current mcap NOK 300 mill.
• NOK 65 mill. in unsecured debt
• Current net debt NOK 55 mill.
• AOGC share price since listing

Aladdin Oil Gas Company ASA (Oslo, Norway)
100
Aladdin Oil Gas Cyprus (Cyprus)
Larchbay Traders Consultants Ltd (Cyprus)
100
100
ZAO Orneftegaz (Orenburg, Russia)
OOO Geotechnologia (Ukhta, Russia)

• Bogdanovskoye license in Orenburg region
• 63 km2 acreage
• 10 employees and independent consultants

• Middle Sedolskoye and West Ukhtinskoya licenses
  in Timan Pechora region near Ukhta
• 1,200 km2 acreage
• 75 employees

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Aladdins activities

• AOGC owns 100 of ZAO Orneftegaz (Orenburg area)
• One exploration license Bogdanovskoye in
  Volga-Ural basin
• 2P reserves of 13 mmbbl oil
• 3P reserves of 21 mmbbl oil
• Preliminary reserves as expected from Gaffney
  Cline report
• Expected by year-end 07
• AOGC owns 100 of OOO Geotechnologia (Ukhta area)
• One exploration license and one production
  license in Timan-Pechora basin
• 2P reserves of 21.5 mmbbl oil 2.0 mmboe gas
• 3P reserves of 60.4 mmbbl oil 6.8 mmboe gas
• Recoverable resource potential of 665 mmboe
• The reserves and resources are certified by 3rd
  party consultant in accordance with Oslo Stock
  Exchange standards for reserve reporting
• Total 2P reserves for AOGC estimated to 36.4
  mmboe
• Total potential recoverable resources close to
  700 mmboe

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Vision and strategy

• Vision
• AOGC aims to become a significant independent
  producer in Russia with a production of 12,000
  boe/day by 2012
• Strategy
• Management with both local and Western competence
  and experience
• Western procedures in management and operations
• Optimize drilling results by acquiring new
  seismic
• Develop existing licenses
• Acquire new licenses

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Three step strategy to create value
2. Drill new wells
1. Re-activate existing wells through work-over
3. Acquire new licenses
A80 Rig Drilling Prospect 16a on MS
Well 33 Work Over
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ZAO Orneftegaz - Orenburg operations

• Orenburg is one of the main oil producing areas
  in Russia
• Aladdin subsidiary, ZAO Orneftegaz with the
  Boganovskaya license, is located in the
  Volga-Urals Basin close to Samara and the
  Kazakhstan border
• West Siberian, Lundin Petroleum and Saga Oil are
  some of the western companies operating in the
  same area
• Production infrastructure in place

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Attractive acquisition of ZAO Orneftegaz

• ZAO Orneftegaz acquisition valued at USD 0.39 per
  boe 2P reserves
• USD 5 million and 13 mmboe 2P reserves 1)
• Acquisition completed in 2Q07
• Experienced local organization specialized on
  Russian EP
• General Manager Evgeny Brianton (34)
• Dual citizenship Russian/English
• Experience from Burren Energy Ltd.
• Deputy General Manager Niclas Biörnstad (34)
• Swedish citizen
• 10 years international experience from
  Schlumberger
• License area covers 63 km2
• 7 wells have been drilled and have been in test
  production prior to acquisition by Aladdin
• 4 wells were in sustained production around year
  2000
• Test production 700 1.000 boe/day
• Upside potential through re-evaluation and
  re-completion of existing wells
• Production expected to increase significantly
  from the short term goal of 700-1,000 boe/day

• Third party reserve report based on SPE (Oslo
  Stock Exchange standard for reserve reporting).

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Production from reactivating existing wells

• Re-activation of 7 wells to maximize output
• First well 33 Sept. 2007
• Wells spaced only a few kilometers apart
• Tanks and pipelines in place on most wells
• Planning 700-1,000 boe/day from existing wells
• Work-over per well takes 3-4 weeks
• (Specialist contractor)
• Circulate well
• Repair/replace tubing
• Logging (cased hole)
• Swabbing
• Re-perforation (old/new zones)
• Production testing
• Acidizing
• Fraccing

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Existing production wells located outside
prospect outlines shown on 3D seismic
Prospect Outline
Existing well
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Proposed new well
Aladdin to drill 3 wells in 2008 on best
prospects (75 probability) Green/yellow
indicates higher prospective areas Blue
indicates less prospective areas
Significant upside potential with production
wells placed in most prospective areas
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Development drilling on low risk structures

• Interpret 3D seismic for new well sites in best
  prospects
• High-angle or horizontal wells to maximize
  drainage
• Existing production wells have been placed
  randomly without seismic
• Existing wells have produced despite being
  positioned outside core reservoirs
• 15 new wells to be drilled next 36 months
• Targeting production of approx. 5,000 boe/day in
  2010
• Maturing 8 mmboe P3 reserves to P2
• New wells expected to produce significantly
  better than work-over wells
• Targeting 250-350 boe/day per well
• Drilling with Aladdins own equipment

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OOO Geotechnologia Ukhta operations

• Two prospective licenses in Northern Russia
• Middle Sedolskoye (MS)
• 1,000km2 exploration license
• 2P reserves of 3.6 mmboe oil 12 bcf gas
• Unrisked upside potential of 578 mmboe
• West Ukhtinskoya (WU)
• 200km2 production license
• 2P reserves of 17.9 mmboe
• Unrisked upside potential of 87 mmboe
• Close to neighboring field, Yarega, which has
  produced approx. 300 mmboe
• Currently producing 12,000 boe/day
• Experienced management
• General Manager Vern Aarflot (62)
• Norwegian citizen Russian/English language
• 11 years experience from Komi, previously General
  Manager AmKomi

West Ukhtinskoya
Yarega
Middle Sedolskoye
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Development plan Geotechnologia

• Development of well 1A gas discovery
• Tested 2,100 mcf/day (375 boe/day)
• lt500m tie-in to existing pipeline
• Acquisition of new 2D seismic
• More seismic on MS and new seismic on WU
• Potentially 3D seismic around areas with
  discoveries
• Shallow structures with low drilling cost
• Moderate production rates lt125 boe/day
• Total capex per well estimated to USD 250,000
• Comprehensive exploration drilling program
• 15 wells in WU and MS combined in 2008
• Three existing oil discoveries to be appraised on
  WU
• Targeting production of approx. xx boe/day in 2010

1A gas discovery in 1,100km2 area
Well 1 tested 2.1 mcf/day in licenses with 665
mmboe unrisked resource potential
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Executive summary

• Aladdin Oil Gas has grown from zero to 36.7
  mmboe in 2P reserves in less than two years
• Successful acquisition of Orneftegaz priced at
  USD/boe 0.39 (2P reserves)
• Recent gas discovery tested 2.1 mcf/day gas in
  licenses with 665 mmboe unrisked resource
  potential
• Well-functioning local organizations with western
  experience and technology
• Targeting cash break-even in 2009 with 3,500
  boe/day production
• Production target 12,000 boe/day in 2012
  maintained