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Aladdin Oil & Gas Company ASAEmerging Market Opportunity with Significant Growth Potential
Work Program 2012
May 2012
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This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it
operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words
“believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking
statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and
forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the
Company or any of the respective group companies or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-
looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the
actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to
conform these forward-looking statements to our actual results.
An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others,
risks or uncertainties associated with the Company’s business, segments, development, growth management, financing, market acceptance and relations with
customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and
pricing environments, fluctuations in currency exchange rates and interest rates and other factors.
Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those
described in this presentation. The Company does not intend, and does not assume any obligation, to update or correct the information included in this presentation.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and
opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the
Company or any of the group companies or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this
document.
By attending the investor presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the
Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s
business.
This Presentation is confidential and is being communicated in the United Kingdom to persons who have professional experience in matters relating to investments
falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such persons being referred to as “investment
professionals"). This presentation is only directed at qualified investors and investment professionals and other persons should not rely on or act upon this presentation
or any of its contents. Any investment or investment activity to which this communication relates is only available to and will only be engaged in with investment
professionals. This Presentation (or any part of it) is not to be reproduced, distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other
person (excluding an investment professional’s advisers) without the prior written consent of the Company.
This Presentation and the information contained herein do not constitute an offer of securities for sale in the United States and are not for publication or distribution to
U.S. persons (within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The securities proposed to be offered in
the Company have not been and will not be registered under the Securities Act and may not be offered or sold in the United States or to U.S. persons except pursuant
to an exemption from the registration requirements of the Securities Act.
Disclaimer
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Company Overview and Goals
Assets
Significant reserves and resource base in established Russian oil
provinces
Head Office in Oslo, Norway. Listed at OTC market - AOGC ticker
Two wholly owned Russian subsidiaries holding 9 licenses
LLC Geotechnologia (GT) – 3 Production and 1 Exploration
Licenses near Uktha in the Timan Pechora Basin
LLC Veselovskoye (VES) – 5 Production Licenses near
Orenburg in the Volga-Urals Basin
Current production of over 1,000 boepd
Aims
Russian subsidiaries to achieve positive EBITDA in 2012
Increase production to 1,500 boepd at the end of 2012
Target growth through further acquisitions using local expertise
VES
GT
Timan
Pechora
Volga
Urals
4
2012 Company Realignment and Vision for Future
Current production is continuing to increase to over 1,000 boepd combined oil and
gas and Company aim is to build up production to over 1,500 boepd at the end of
2012;
Loan agreement of USD 7.6 million has been signed with Waterford Finance &
Investment Ltd to implement the current proposed work and investment program;
First time complete Review of Reserves and Prospectivity of our assets was
commissioned in 2011 by independent established consultants TRACS. The
Review was completed in second quarter 2012. The Company believes that the
Review is conservative and forms a sound basic case for future growth;
The Company is committed to continue implementing effective measures aimed at
increasing efficiency and cutting costs. The Russian subsidiaries intends to achieve
operating profit in 2012.
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Company Profile – A solid foundation to build future growth
Solid reserves base with significant
exploration upside
Stable current production and
significant growth plans
Strong governance
structure and investor protection
Attractivevaluation
Recent financial restructuring
Significant potential for production growth based on currently existing resources.
Currently producing over 1000 boepd
Realizable opportunities to materially increase reserves through
exploration and appraisal as well as acquisition of new assets
Strong financial support from strategic shareholders
Team of experienced international professionals and local management. Good
Corporate Governance with established Board of Directors.
The Company hydrocarbon production is continuously increasing. (Share price
however currently trading at historic lows )
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Work program 2012 (the main objectives)
Object Q1 Q2 Q3 Q4 Total, $ MM target
Orenburg
Voinsk
#96 sidetrack
Drilling, completion,
start production $ 2.0
Forecasted daily
production rate of ~300
bopd
Nikiforovskoe
#57 sidetrack
Drilling, completion,
start production
Water injection
implementation.
Proposed injector –
well #61.
$ 2.2 Forecasted daily
production rate to ~150
bopd, maintain pressure,
hydrodynamic studies
Ukhta
Sredne-Sedelsk
#10A exploration well
Drilling, and testing
$ 0.600
License obligations
fulfillment. Discovery new
field and add reserves
Sredne-Sedelsk
#12 production well
Drilling, completion Facility construction
(pipelines, etc.)
Start production
$ 1.200
Forecasted daily
production rate of 200
boepd of gas
Sredne-Sedelsk
#14 exploration well
Drilling, testing . start production
in 2013 if discovery $ 0.700
Forecasted production
rate of 150 boepd of gas,
new field discovery,
license obligations
fulfillment
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TRACS report 2012. Structure of reserves.
*- SPE PRMS classification at the official website:
http://www.spe.org/industry/docs/Petroleum_Resources_Management_
System_2007.pdf
**- 3UC For West-Uchtinskoe
Name
Tracs Consult, Due diligence, 2012
(SPE* standard)
units 1P 2P 3P 3C**
Komi region
Mid-Sedelskoye (gas) MMm3 104,88 235,14 383,5
Mid-Sedelskoye (cond) Mtonn 0,3 0,7 1,1
Suskinaelskoe (gas) MMm3 17,5 115,42 162,5
Suskinaelskoe (cond) Mtonn 0,0 0,1 0,1
West-Uktinskoye (oil) mmbbl 10,5
Total Komi oil mmbbl 10,5
Total Komi gas MMm3 122,4 350,6 545,9
Total Komi condensate Mtonn 0,3 0.8 1,2
Orenburg region
Voinskoye (oil) mmbbl 0,0 0,8 1,1
Voinskoye (gas) MMm3 0,2 3,8 5,5
Besedinskoye (oil) mmbbl 1,6 3,1 3,6 1,3
Besedinskoye (gas) MMm3 19,6 37,0 43,2 7,1
Nikiforovskoye (oil) mmbbl 2,7 7,5 8,6
Nikiforovskoye (gas) MMm3 41,6 114,2 131,7
Veselovskoye (oil) mmbbl 5,4
Veselovskoye (gas) MMm3 205,8
Khersonskoye (oil) mmbbl 0,1 0,3 0,4
Khersonskoye (gas) MMm3 0,4 1,2 1,4
Total Orenburg oil mmbbl 4,5 11,6 13,7 6,7
Total Orenburg gas MMm3 61,9 156,2 181,8 212,8
TOTAL ALADDIN OIL & GAS COMPANY ASA
Total oil mmbbl 4,5 11,6 13,7 17,2
Total gas MMm3 184,2 506,7 727,7 212,8
Total condensate Mtonn 0,3 0,8 1,2
General summary:
- 1P reserves including gas = 5,6 mmboe;
- 2P reserves including gas = 14,7 mmboe;
- 3P reserves including gas = 19,4 mmboe;
- 3C resources including gas = 18,5 mmboe.
Prospective resources (middle estimated):
- 2,65 MMtonn (~ 19,3 mmbbl) of oil at the
Veselovskiy license block
with POS=0,3;
- 866,5 MMm3 (~ 5,3 mmboe) of gas at the
Sredne-Sedielskiy license block
with POS=0,47.
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Summary of target result
140
290
0
100
200
300
400
500
2011* 2012*
Ukhta gas production, Mboe
60,0
100,0
0
20
40
60
80
100
120
2011* 2012**
Orenburg oil production, Mbbl
1 900
3 650
0
1000
2000
3000
4000
5000
2011* 2012**
Ukhta revenue, '000 USD
2 900
4 800
0
2000
4000
6000
2011* 2012**
Orenbourg revenue, '000 USD
• 2011 figures are based on unaudited management accounting data (financial audit is expected to complete by end of May 2012)
• 2012 data is the best estimations. May vary depending on working program execution success and financing.
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Summary of 2012 annual forecast targets for Russian subsidiaries
150
500
850
1000
0
300
600
900
1200
1500
1800
Current Production Production target of YE 2012
Bo
e/d
Daily production
GT
VES
• Daily Production increasing to 1,500
boepd (see fig.)
• Annual revenue reaching ~ $ 8.5m
• Annual EBITDA of ~$ 1.3m
• December 2012 revenue reaching
~$1.0m (EBITDA $ 0.25m)
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Company Ownership – strong support from strategic investors
Shareholder
Number of
shares held Stake
Waterford Finance & Invest Limited 25,903,581 40.4
Soyuzneftegas Capital Limited 13,606,000 21.2
MP Pensjon PK 2,730,617 4.3
Paal Hveem 2,502,294 3.9
Euroclear Bank S.A./N.V. ('BA') 2,213,702 3.5
RBC Dexia Investor Service Trust 2,000,000 3.1
Ivar Erik Tollefsen 1,352,977 2.1
Vladimir Andoskin 1,323,916 2.1
Citibank NA London Branch 1,318,000 2.1
Deutsche Bank AG London 1,259,245 2.0
Hadeem invest AS 1,173,506 1.8
Six Sis AG 832,527 1.3
Fairview Finance & Invest Limited 782,450 1.2
Roger Francis Van Baal 525,325 0.8
Clearstream Banking S.A. 428,375 0.7
Lars Hagen 363,843 0.6
Georgina Campbell Fyffe 310,550 0.5
Cheviot Capital Client Account 249,975 0.4
Stormskjold Regnskap AS 246,142 0.4
Totenkopf AS 238,142 0.4
Top 20 shareholders 59,361,167 93%
Other shareholders 4.720.169 7%
Total number of shares 64.081.336 100%
WF & I LTD SNG CAPITAL LTD
TOP 19 SHAREHOLDERS OTHER SHAREHOLDERS
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Strong Management Team – Experienced professionals and local expertise
Alexey Kruzhkov, Chief
Executive Officer
Has more than 20 years of experience in natural resources industry. Alexey has served as CFO of Waterford Finance &
Investments Ltd since 2003. He has been involved in a variety of international oil and gas projects being responsible for
financing, investor relations, reporting and control. Prior to joining Waterford Alexey held senior management and Board
positions in a number of private and public entities including SINCO, Oxoil and Thistle Mining Plc. Alexey has a MBA from A.
B. Freeman School of Business of Tulane University and Master Degree from Moscow Power Engineering University.
Nikolay Piskun, Managing
Director for Aladdin Group
Companies
Has joined Aladdin after 18 years of successful career in GaspromNeft (previously Sibneft) where he held a number of senior
executive positions including Director for Business Development, General Director of Gazpromneft’s oil producing subsidiary
Gazpromneft-Angara and Senior Manager for Eastern Siberian Assets. Nikolay holds a degree from Gubkin State University
of Oil and Gas.
Marina Tikhonenko CFO
Group Companies
Joins Aladdin as CFO after spending two years as an international consultant working in London for WFS Europe and as
CFO with Canadian Group GPCP for Gazprom in Orenburg. She graduated from the University of Moscow Finance
Academy (year 2001 diploma with distinction) after completing her BSC engineering diploma at Gubkin State Oil and Gas
Academy. She has over 10 years experience in the international oil and gas industry in Russia with previous positions in
Petrofac, Wintershall, Imperial Oil, and more recently with JKX Oil & Gas in London.
Ilya Ulyanov
Chief Geologist
Has more than 10 years experience of working in oil and gas industry for various Russian and international projects. Joins
Aladdin after Gazpromneft’s project in Venezuela. Ilya holds a degree from Gubkin State University of Oil and Gas.
Roman Krotov, General
Director in Orenburg
Нas 10 years of oil and gas experience. He has worked in subsidiaries of oil and gas majors including Russneft and Lukoil.
Before joining Aladdin Roman was a General Director of a well-established independent oil producer Yukola-Neft in Saratov
region. Roman holds a degree from Samara State Technical University.
Nikolai Zateev, General
Director in Ukhta
Нas experience of work in oil producing and refining companies and has substantial experience and contacts in Uchta
region. In particular, he worked as Director of Strategic Communications and Information of North Oil, General Director of
UrengoiGeoResource, Strategic Director of Trading House Platan-Sever. Before joining the Company Nikolay held a position
of Deputy Director General on oil and gas in Lakeshore International Management where he was involved in several projects
Espen Glende, Chief
Operating Officer
Has held senior positions within the Company since 2006 and has 6 years experience from the Russian Oil & Gas sector for
small independents. Previously worked as an entrepreneur and investor focusing on real estate and commodities.
Experience from project management, financial markets and economical analysis focusing on the oil & gas sector. Espen
holds a MSc from The Norwegian University of Life Sciences
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Board of Directors – Established and Experienced
Fred Ponsonby, Chairman of
the Board
Lord Ponsonby is a physicist by education and has served on the Board and as Chairman of a variety
of oil companies incl. Emerald Energy PLC, Rosehill Energy PLC, and has worked for Phibro, Lasmo
and Petrofina.
Michael Alyautdinov: Mr. Alyautdinov has significant M&A and project management experience in oil and gas and natural resources.
He joined SoyuzNefteGaz in 2004 as Head of M&A. Currently Mr. Alyautdinov is a Deputy CEO and Head of
M&A of SoyuzNefteGaz.. In 1997-2004 he worked as a senior lawyer at Clifford Chance.
Einar Lyche Mr. Lyche graduated in 1983 with a Bachelor of Science degree in Business Administration, in finance and
marketing, from University of the Pacific, Stockton, California. He has spent most of his career in international
companies. Now he is one of the founders of Lyche, Holst & Partners. Before that Mr. Lyche held management
positions in such organizations as Morgan Stanley, London, Commerzbank, London, HSH Nordbank, Oslo.
Katherine H. Støvring Ms. Støvring is Vice President, Major Subsea Projects in Aker Solutions ASA. Previously she has held the
positions as Senior Lawyer at Simonsen Advokatkontor, CEO Fred. Olsen Renewables ASA, Vice President
International Exploration and Production in Statoil, and Planning and Performance Manager in the Gas, Power
and Renewables division of BP plc in London. Ms Støvring graduated from London Business School (Sloan
Programme) in 2001. In addition she is a member of the Norwegian Bar and a Solicitor Admitted to the Rolls of
England and Wales. Ms Støvring is a Norwegian and US citizen and resides in Oslo, Norway. She serves as a
non-Executive Director of Norse Energy Corporation ASA (OSE) and Panoro Energy ASA (OSE).
Linda Dowding Ms. Dowding was born in Huddersfield, West Yorkshire England. She has lived in Guernsey since 1974, married,
has two sons. Linda joined Weighbridge Trust Limited in September 1987and was appointed as a Director in
2006. Her work with Weighbridge Trust Limited has involved the administration of trusts and private and public
companies in various jurisdictions, particularly property purchases and management of properties. Linda has
extensive experience in stocks and shares in both listed and private companies worldwide.