Sibir Energy - Shaping up & heading for 90,000 bopd -

1st six months West Salym (from interims in September)

West Salym

In addition to infrastructure development intensive, drilling activity has takenplace in West Salym which contains most of the Group's reserves. In the first half of 2005, two more Deutag drilling rigs were mobilized and spudded their first wells, while the SSK1 rig finished drilling at Pad K20. At the end of period three rigs were drilling on Pads K1, K9 and K16 while one heavy duty
hoist was completing the wells on Pad 20.

In total twenty wells were drilled on Pad K20 with sixteen wells completed and
three producing. Production in the first half was primarily for testing and
compliance with License obligations. Some of this oil was sold locally to
domestic processors as "wet" unprocessed crude. In April, SPD also began
trucking crude oil to Zapadny Maly Balyk for processing and transport via the
Transneft pipeline system. Cumulative production from West Salym for the period
was 229 thousand barrels.