THE WALL STREET JOURNAL: Sibir Energy: Salym Wells Production Exceeding Target: “SPD is a 50/ 50 joint venture company between Shell Salym Development B.V. and Evikhon, a subsidiary of Sibir.” (ShellNews.net) 18 April 05

DOW JONES NEWSWIRES

Edited Press Release

LONDON -- Sibir Energy said Monday that of the six wells completed in West Salym, its West Siberian Salym Petroleum Development (SPD) joint venture has tested four wells and early production is comfortably exceeding expectations with wells producing at an average rate in excess of the prognosed production of 80 m3/day (500 barrels) with less than 1% water content.

SPD is a 50/ 50 joint venture company between Shell Salym Development B.V. and Evikhon, a subsidiary of Sibir.

Sibir Chief Executive Henry Cameron said "These early drilling results being above expectations are very encouraging and bode well for the future performance of the Salym Fields".

"This reservoir performance confirms the historic data upon which Sibir based its original decision to proceed with investment in the field," Cameron said.

Development of the Salym Fields infrastructure commenced in late 2003 and drilling activity at the West Salym Field began with the initial drilling rig in April 2004.

A second rig is at work in Upper Salym and two additional rigs will be operational later in May 2005 in West Salym. SPD is 'batch' drilling on the same drilling pad, with up to 20 wells being drilled from each pad, the company said.

In West Salym alone 26 pads are currently planned.

In total 19 wells have been drilled to date. Four are on production as described above and two are about to be brought on test. Ten await completion and three are in construction.

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