Siberian Energy Says Mokrousovsky-1 Close to TD

Siberian Energy says that OOO Zauralneftegaz (ZNG), the 50/50 Joint Venture between Siberian Energy Group and Baltic Petroleum, provides an update on its Mokrousovsky-1 exploration well, currently being drilled in the Kurgan region of Western Siberia, Russia. Siberian can report that the Mokrousovsky-1 well is close to reaching its target depth of 2,500 meters.

Following the detection of hydrocarbons at several horizons, the well has been successfully logged and cored in some potentially prospective areas. Based on the information so far obtained, early indications are that a hydrocarbon system may be in place in the Mokrousovsky area. As a result, ZNG's geological consultants RPS of the UK and BNG of Russia have both recommended that at least one primary and up to four secondary zones be further evaluated, to establish reservoir properties and, if possible, potential flow rates to establish the possibility of commercial production.

ZNG has commissioned an independent third party report from the Tyumen Institute based on the data available from the logs and from physical specimens recovered. The Task Force set up by the Institute has confirmed the need for testing, supporting the recommendations of RPS and BNG.

ZNG has also engaged Schlumberger to run a Modular Formation Dynamics Tester ('MDT') tool in accordance with a program established by RPS. The MDT testing is due to commence within 5 to 6 days and is expected to last for about a week. Upon completion of the data acquisition, the results will be analyzed by RPS and BNG. Once the results are known, a further update will be provided.

David Zaikin, Chairman and CEO of Siberian Energy, said: "We are looking forward for the results of the MDT testing. Together with company's expansion in Khanty-mansiysk region this news is a positive development in our activities in Western Siberia."