Baltic Oil Says Press Speculation Inaccurate

Baltic Oil Terminals, the operator of exploration licences in the Kurgan Region of Russia through its 50% subsidiary Zauralneftegaz (ZNG), notes recent speculation in the Russian press, regarding its exploration licences, together with the statement made by Sibir Energy.

In this statement, Sibir refers to an article in Vedemosti, which states that two exploration licenses owned by Zauralneftegaz and Baltic Petroleum have been revoked by the quote "Ministry of Nature" unquote.

This statement is entirely incorrect. No revocation of exploration rights owned by Baltic has taken place. Baltic can confirm that, as part of an ongoing review of its portfolio of licenses, it has taken the decision not to proceed with its commitments in respect of two licenses, West Suersky and Orlovo-Pashkovsky-1. Accordingly, ZNG has commenced the process of voluntarily surrendering these licenses to the relevant authorities.

As stated in a separate announcement issued today, Baltic remains fully committed to its exploration program, with the current focus on the Privolny and Mokrousovsky licences.