Sibir Spuds Koltogorsky Exploration Well

Sibir has spudded the second of seven exploration wells scheduled as part if its 2008 drilling campaign on the Koltogorsky exploration licenses. This well was spudded in block 11 and is planned to reach a total depth of 3,200 meters by late May 2008. An additional four wells are planned to be completed and a further two spudded by year end.

Infrastructure development has proceeded apace with 56.5 kilometres of both paved and winter ice roads now completed. Four new drill pads have been constructed and four drilling rigs mobilised. Construction of a fifth well pad and mobilisation of a fifth drilling rig is planned for the end of April.

Commenting on the announcement Sibir CEO, Henry Cameron, said, 'Today's announcement bears witness to steady progress in executing Sibir's 2008 exploration program for the Koltogorsky licenses. As already announced, we drilled our first exploration well to total depth of 3,200 meters in December 2007 and were very encouraged by the results. Solely for safety reasons testing had to be delayed, however Sibir expects to test this first well later this month and the results will help determine the course of further development. Sibir plans to provide regular updates on the progress of the exploration program throughout the year.'