SIBIR ENERGY plc

06 | 02 | 2008

2007 Sibir Production and Products Trading Overview

2007 was a year of record production for Sibir. Total production for the Sibir

group increased 80% to 17.8 million barrels from 9.9 million barrels in 2006.

The average daily rate of production for the year increased to 48.9 thousand

barrels of oil per day ("bopd"), up from an average 27.1 thousand bopd in 2006.

Sibir expects its total group production to grow to 25 million barrels for the

full year 2008.

Sibir's daily production rate at year-end reached 63.1 thousand bopd, a 62%

increase from 38.9 thousand bopd at the end of 2006. The weighted average

netback on domestic and export crude sales after transportation and export duty

was $34.0/bbl in 2007.

In the downstream, Sibir's trading operation processed 21.4 million barrels of

crude at the Moscow Refinery, up 51% from 14.2 million barrels in 2006. Gross

margins on product sales from processing averaged $6.5/bbl in 2007. Sibir

expects to process 35 million barrels at the Moscow Refinery in 2008.

Sibir's share of fuels sales volumes from its MTK and Mosnefteprodukt retail

networks as well as its joint venture with BP totaled 561 million litres in

2007. Total retail sales in 2008 are expected to exceed 570 million litres.

Commenting on the 2007 production and refining results Sibir CEO, Henry Cameron,

said, "2007 was another record year for production at Sibir driven primarily by

production increases at Salym. Sibir also benefited from strong prices and

netbacks for its crude production and increased oil products revenue from crude

processing at the Moscow Refinery. The enormous volume of work associated with

converting our Russian accounts into IFRS standards means that we will issue our

report on 2007 results at the end of June. We issue this production and products

trading overview to assist shareholders in forming a view of the current state

of affairs at Sibir."