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Sibneft Wins Auction for Licenses on Two Fields in Khanty-Mansiisk Region

Moscow. March 28, 2005. Sibneft has won an open auction for the rights to develop the Salymskiy-2 and Salymskiy-3 blocks in the Khanty-Mansiisk Autonomous District of western Siberia.

Sibneft agreed to pay 200.34 million rubles ($7.23 million at today’s exchange rate) or $0.04 per barrel for the Salymskiy-3 block, which has estimated recoverable oil resources of 23.42 million tons. The company will pay 342.77 million rubles ($12.37 million) or $0.06 per barrel for Salymskiy-2, which has recoverable oil resources of 25.94 million tons.

“Sibneft is continuously seeking ways to expand its resource base,” said Sibneft president Eugene Shvidler. “This process involves reviewing opportunities to participate in license auctions, as well as evaluating potential acquisitions of petroleum assets.”