Sibir Energy PLC - Rosprirodnadzor

Thu Feb 14, 2008 7:16am EST

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RNS Number:0161O
Sibir Energy PLC
14 February 2008

                           Sibir Energy plc ("Sibir")

                      Conclusions of Rosprirodnadzor Audit

Sibir announces that executives of Sibir subsidiary OAO Magma today met with the
audit commission of the Russian Ministry of Natural Resources' Federal Agency
for the Supervision of Natural Resource Usage ("Rosprirodnadzor") to review the
findings of a routine audit of Magma operations at its Yuzhnoye and Orekhovskoye
oil fields in western Siberia as announced on January 11, 2008.

In its audit conclusions Rosprirodnadzor issued Magma administrative fines
totalling 70,000 rubles (US$2,800) and granted Magma up to 10 months to take
remedial action. Magma will complete the remedial action within this period.

Rosprirodnadzor's claims against Magma concerned, inter alia:

  • Timely submission of documentation relating to production levels up to
    and including 2005 with 2006 and 2007 found to be in compliance,
  • Scheduled compliance with associated gas utilization requirements planned
    by Magma to be completed by summer of 2008,
  • Conformity with newly introduced regulations on metering of producing and
    injection well rates with which Magma will be in compliance by May, 2008,
  • Timely submission of certain other documents.

Commenting on the announcement Sibir CEO, Henry Cameron, said, "Sibir is pleased
that Rosprirodnadzor moved swiftly in reaching its conclusions regarding the
audit of Magma's operations at the Yuzhnoye Oil field in western Siberia and
Magma will likewise move quickly to complete remedial actions within the
required period. As a matter of policy Sibir works hand in hand with
Rosprirodnadzor and all relevant Russian regulatory agencies to ensure that its
operations comply with operational, environmental and legal regulations of the
Russian Federation. As in all modern oil producing countries, enforcement of
these regulations in Russia is detailed, exacting and ongoing, as it must be,
for the safe and efficient development of national resources. Sibir will
continue to do its utmost to make sure its operations meet or exceed regulatory
requirements and protect its established reputation as a responsible corporate
citizen working in the best interests of our shareholders, our employees, the
communities in which we operate and the Russian Federation as a whole."

Enquiries to:

Henry Cameron, CEO
Moscow +7 495 792 3045

Stuard Detmer, Member of the Board
Moscow +7 495 792 3045

Rory Murphy, Strand Partners Limited
London +44 (0) 20 7409 3494

Nick Miles, M: Communications
London +44 (0) 20 7153 1530

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            The company news service from the London Stock Exchange

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