Aladdin Oil Corp. Forms Joint Venture for the Acquisition of Producing Oil and Natural Gas Properties.

LOS ANGELES--(BUSINESS WIRE)--Aug. 10, 1999--

Aladdin Oil Corp. (OTC BB:ADDN) announced today that it has entered into an agreement with Wespac Technologies Corp., a private Texas-based company, to form Wespac Energy LLC to acquire a package of up to three properties located in Texas and Louisiana.

Under preliminary purchase terms, Wespac Energy LLC will acquire properties for a combined purchase price of approximately $12.5 million, subject to adjustments at closing. Estimated PV-10 value of the property reserves are currently $24 million.

Under the terms of the joint venture, Aladdin Oil will have the right to purchase up to 50 percent of Wespac Energy for a total consideration of $450,000, plus certain capital contributions to the properties. Terms for closing are still being negotiated, and closing is subject to the arrangement of financing, among other items which are still subject to change.

Meghan Robins, president and CEO of Aladdin Oil, commented: "We believe that this transaction could materially alter the outlook for Aladdin Oil. We have previously stated that we expect to aggressively acquire producing propert (CAEX), primarily in the states of Texas, Louild cause the company's actual results to differnticipate," "estimate" "continue," "present value," "future," "reserves" or other variations thereof or compang to the company's growth strategy, outstanding indebtedness, dependence on weather conditions, seasonality, expansion and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, and the general condition of the economy an.