Upstream Overview

Sibir's upstream operations are concentrated in the Khanty Mansiysk Autonomous Area  of West Siberia and consists of two key assets with a total of over 640  million barrels of recoverable reserves: The Salym group of fields, operated by a 50:50 jont venture with Shell, and the Yuzhnoye and Orekhovskoye fields, operated by Sibir subsidiary Magma.

Salym Group of Fields (550 million barrels of recoverable reserves Sibir share)

Salym is operated by Shell as part of a 50:50 joint venture, Salym Petroleum Development, B.V,. and began commercial production in late 2005.  It is one of the largest onshore developments in Russia and is expected to reach peak production of 180,000 bopd by 2009 (90,000 bopd, Sibir share)  read more ---

Yuzhnoye Field (87 million barrels of recoverable reserves)

Yuzhnoye is a mature field operated directly by Sibir subsidiary, Magma, and currently produces over 7,500 bopd. In December 2006, Sibir announced the launch of development at the Orekhovskoye field near Yuzhnoye.   read more ---

Orekhovskoye Field (54 million barrels of recoverable reserves)

Orekhovskoye is a development project located 22 kilometers from the Yuzhnoye field.  Over the next two years Sibir will drill 22 wells and a pipeline to hook up the field to the Yuzhnoye CPF. Peak production is expected to reach 5,000 bopd by 2011.  read more ----

Koltogorsky Exploration Blocks (970 million barrels of estimated resources)

The Koltogorsky Exploration Blocks comprise 520,000 acres over 8 blocks in the Khanty Mansiysk Autonomous Area of Western Siberia near the operations base for Sibir subsidiary, Magma.  Eight exploration wells are to be drilled before year end 2008.  read more ---

Future Growth

Sibir has ambitious growth plans for its upstream operations and currently has a dedicated team of upstream professionals reviewing license opportunities with a minimum 200 million barrels reserves potential first in western Siberia and then elsewhere in Russia.  Sibir is also evaluating potential corporate acquisitions to enhance its reserves and production base.  With its two key upstream assets in production, Sibir aims to develop a balanced portfolio of exploration, development and producing properties to ensure robust growth now and in the future.