Aladdin Oil & Gas Company ASA reported an operating loss of NOK 4.9 million in the second quarter of 2008, following the investments and operating activities on the company's Russian licences. The company is on track developing the gas project in Uktha.

“Aladdin is on track with the development of the promising gas project in Uktha and with the development of the reef structure in Orenburg. After the closing of the quarter, we signed a cooperation agreement with Komi Regiongas, an affiliate of Gazprom, regarding the sale of the gas”, says CEO in Aladdin Oil & Gas Company, Hans-Axel Jahren.

Aladdin Oil & Gas Company had an operation loss of NOK 4.9 million on the second quarter of 2008, and a total operating loss of MNOK 11.1 million for the first half of 2008. During the second quarter, Aladdin Oil & Gas Company completed a NOK 45 million share issue, which will be used to finance the company's capital expenditure programme.

“We continue to focus on a cost effective operation and targets projects that will increase the production and result in a rapid positive cash flow from operations. The operating expenses and investments are expected on a similar level going forward”, says Jahren.

In Orenburg, the work over has been completed and the focus is currently on the reef structure exploration well. All sidetrack drilling operations has been postponed until the company reaches a positive cash flow. Total test production as of August 2008 is approximately 100 bopd.

On the Middle Sedolskoye license in Timan-Pechora, the first part of the testing on the gas well was promising and showed good production properties. The company has now signed a cooperation agreement with Komi Regiongas, an affiliate of Gazprom, regarding the sale of gas from the license.

“The commercialisation of the gas discovery will give us a substantial production- and revenue effect in 2009. In addition, we are looking forward to reporting on the further development of the reef structure”, says Jahren.

Tags: Aladdin Oil & Gas Company