West Syberia Is Successfully Drilled

Sibir Energy PLC said its 82%-owned subsidiary, Evikhon, has successfully drilled, completed and tested well No. 301 on drilling pad K-1 in the Western part of the Upper Salym field located in Western Siberia.

Sibir said three good quality oil bearing sands, AS9, AS10 and AS11, were encountered extending in total to 18 metres of oil pay. Well No. 301 was completed on July 29 and is expected to be on production by Aug 9.

Production tests on a 10 metre interval in the deepest reservoir (AS11), have established a Productivity Index of 0.86 cubic metres a day per atmosphere of drawdown. Following the installation of an electrical submersible pump, this will equate to a production rate of approximately 850 barrels of dry oil per day, said Sibir.

Sibir chief executive officer Henry Cameron said the results of Well No. 301 wholly justifies Sibir's decision to sole risk the development of Upper Salym. These results have been welcomed by the Russian licensing authorities and have enhanced Sibir's reputation as a developer/operator in the region.

"We hope that these results encourage our partners, Shell, to accelerate the development with us of the remaining two Salym fields," he added.

He also said that, having reduced the debt burden of Sibir through the sale earlier this year of the Pentex Group of companies, the group is expecting to replace the average yearly production attributable to the Pentex Group of some 2,800 barrels of oil per day with the completion in September of the next well at Upper Salym.

"Thereafter, the completion of the remaining three wells in the programme will result in substantial increases in Sibir's production."

©

&to=http://www.sibirenergy.com' target=_blank>Sibir Energy PLC