Company Information for Sibir Energy Plc

AIM-SBE

www.sibirenergy.com

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AIM; SBE

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Company Statement

Sibir Energy plc is a fully integrated independent energy company with exploration and production operations in Western Siberia and refining and marketing in the City of Moscow and the Moscow region. Since its creation in 1996, Sibir has grown its attributable reserves to over 680 million barrels (Russian classification A+B+C1+C2) and daily production to over 69,000 barrels of oil per day (bopd) making Sibir one of the largest UK-listed energy companies. In ten years of doing business in Russia, Sibir’s Western management team has partnered with its largest Russian shareholder to overcome the challenges of doing business in this dynamic market and has strengthened the company at each turn.

Upstream, Sibir’s production comes from its Yuzhnoye field, operated by Magma Oil Company (95% Sibir owned), and its joint venture with Shell in the Shell-operated Salym group of fields (50% Sibir owned). Sibir’s total current production is over 69,000 barrels of oil per day (bopd), including its 50% of production from the Salym Fields and its wholly owned Magma production unit. By the end of 2009 Sibir’s total production is expected to exceed 100,000 bopd.
Downstream, Sibir is uniquely positioned through its ownership of the Moscow Oil and Gas Company (MOGC), through which it has 100 thousand bopd of operating capacity at the Moscow Refinery. Sibir’s crude oil production is both exported directly and refined in the Moscow refinery to be sold as refined products in the export market. Gasoline and diesel products are also marketed directly in Moscow and surrounding region through Sibir's network of over 130 petrol service stations. Sibir additionally owns a 25% stake in a network of 48 BP-branded service stations in Moscow and suburbs. Sibir’s products trading operation has contributed significant profitability since its launch nearly three years ago.

With all of Sibir’s key assets currently contributing to profitability, the company has now turned its attention to an aggressive programme of expansion in both upstream and downstream sectors to ensure the company’s continued growth now and in the future.

Sibir has been listed on the Alternative Investment Market (AIM) of the London Stock Exchange since 1997 and has 386,564,695 million shares in issue. 65% of Sibir shares are held by Russian individuals or entities: Chalva Tchigirinsky and Igor Kesaev through a holding company called Bennfield hold 47% and the City of Moscow holds approximately 18%; 25% is held by institutions and the balance is owned by individuals, trusts and others.

Operations and Technology

Downstream Overview
Moscow Oil and Gas Company (MOGC)
Sibir's Downstream assets in refining and marketing are held primarily through its 100% ownership of MOGC. Key assets include a 51% voting stake in the 240,000 bopd Moscow Refinery (100,000 bopd operating capacity net to Sibir), 100% ownership of the 69-station MTK retail fuels network in Moscow and 51% ownership of the 64-station Mosnefteproduct retail network and storage terminals network in the Moscow region.

Moscow Market
With a metropolitan area population of over 16 million, Moscow is the largest city in Europe. Some 100,000 cars are added to Moscow City streets every year making it the Continents fastest growing market with some of its highest retail fuels margins. The Moscow Refinery is the city's primary supplier of fuels which, together with our retail fuels market share position of over 20%, provides significant price support for our refined products.

Trading Operations
Sibir manages all downstream supply and trading operations through the trading arm of its subsidiary, Magma Oil Company. Domestic crude from the Yuzhnoye and Salym oil fields and third party suppliers is supplied directly and through crude swaps to the Moscow Refinery to fulfill Sibir's 100,000 bopd share of the refining quota. Sibir retains title to all products through the refining process until it is sold to the Moscow retail networks or shipped for export. The trading group likewise manages crude export operations for the company.

BP Retail Network
In 2006 Sibir completed its acquisition of a 25%+1share stake in the BP branded and operated retail network in the City of Moscow. It is one of the most profitable networks in the world on a per station basis.

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).

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.

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.

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.

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.

Geographical Spread

Western Siberia

Board of Directors and Key Management

Mr. William L. S. Guinness	Non-Executive Chairman
Mr Stuard Detmer	Chief Executive Officer
Mr. L. Stuard Detmer	Deputy CEO
Mr. Alexander Betsky, CA	Finance Director

Company Address

17c Curzon Street,
London, United Kingdom W1J5HU


Telephone:	+44 20 7495 7878
Facsimile:	+44 20 7495 8090
Email:	information[at]sibirenergy.com
Website:	http://www.sibirenergy.com

Additional Address/Key Contact

Moscow
31 Novinsky Boulevard
6th floor, Moscow
Russia 123242
Tel: +7 495 223 74 64
Fax: +7 495 933 75 97

Capital

Total Shares in Issue - 386,564,695

Annual General Meeting

Annual General Meeting in London - Fourth Quarter

Year End

December 31

Nominated Brokers

JPMorgan Cazenove Limited
20 Moorgate
London
EC2R 6DA

Strand Partners Limited

Nominated Advisors

Strand Partners
26 Mount Row
London W1K 3SQ

Major Shareholders

Bennfield	180,336,643	47%
Central Fuel Co. (City of Moscow)	69,714,254	18%
M&G Investment Management	24,196,117	6%
BlackRock Investment Management	21,694,344	5%
Other Institutions	55,930,035	14%
Individuals & Private Trusts & Other	36,987,035	10 %

Most Recent Statement

14/08/09 - Holding in the Company
13/08/09 - NOTIFICATION OF MAJOR INTEREST IN SHARES
12/08/09 - Directorate Changes
22/06/09 - Directorate Change
18/06/09 - UPDATE 1-Gazprom Neft executive becomes Sibir Energy CEO
28/05/09 - Offer for Minority Shareholdings in Sibir Energy

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