03 | 12 | 2010

Shareholders of Sibir Energy plc approved the Scheme of Arrangement

At the General Meeting of shareholders of Sibir Energy plc (the “Company”) held on 26 November 2010 the shareholders approved the Scheme of Arrangement pursuant to which  the shares held by more than 1 000 minority shareholders (Scheme Shareholders) representing 0,34% of the issued ordinary shares of the Company will be cancelled in consideration for a cash payment by the Company.

Under the Scheme of Arrangement the ordinary shares of ten pence each held by the Scheme Shareholders shall be cancelled in consideration for a cash payment by the Company to the Scheme Shareholders of 500 pence per each Scheme Share held.  The cancellation will result in the respective reduction of the issued share capital of the Company and will also increase the respective stakes of the majority shareholders of the Company -- OJSC “Gazprom neft” and OJSC “Central Fuel Company” -- in the share capital of the Company.

Mr Vadim Yakovlev, the Chairman of Board of Sibir Energy plc noted that «in response to   numerous requests of the minority shareholders the Sibir Energy plc, the shareholders approved the proposal to buy the shares held by the minority shareholders at a fair price and demonstrated attention to the needs of and respect for the interests of the the minority shareholders of theCompany».

Note:

The Scheme of Arrangement was approved by the Board on 8 November 2010.  The Company was approached by the Minority Shareholders, who wanted to sell their shares under the offer of OJSC “Gazprom neft” of 29 May 2009, but were unable to do so in the time frame required.