Has anyone please got any info on this one? It was supposed to start trading again in July and then August - almost end of August and nothing!

It will start trading again when such trading would not create a false market.
That is, until the facts behind the attempt to dispossess Sibir of its JV come into the public domain, it will remain suspended.

RNS Number:9097E
Sibir Energy PLC
05 November 2004

5 November 2004

SIBIR ENERGY PLC ("Sibir" or the "Company")

Sibir previously announced that it would post a circular to shareholders
on or before November 5, 2004. Whilst the circular itself and all related
matters are at a very advanced stage, the Company was over optimistic in
believing that all matters could be pulled together within that time framework.

The Company now expects to be able to publish a circular during the week
commencing November 15, 2004 with the Extraordinary General Meeting to be held as
soon as is possible thereafter.

This announcement is made with the knowledge of AIM Regulation and their consent
to the amended timetable.






This information is provided by RNS
The company news service from the London Stock Exchange

END
MSCUVOARSWRARAA

Anybody got any idea how this will fair when trading begins tomorrow? Just trying to find some light at the end of the tunnel following recent events at PET!!

Wildboy, this will fly over 3 tomorrow.

At what price do you feel it will open at?

Wildboy - Grateful you explain PET

Oakapples, PET had risen to 1+ on the back of intense speculation regarding the potential award of the first post war oil contracts in Iraq. Following a supposed leak from the oil ministry saying that PET had missed out on the first two contracts available the share price subsequently collapsed leaving several people out of pocket. That said I still believe that there may be one or two more twists in the tail with this before very long. Hope that explains.

Wildboy

Wildboy - Thanks - It will now be interesting to see if anyone is prepared to answer gra1969 post number 5 - SBE is now very much in my Watchlist for a very early look to-morrow.

Expect to Open at 2.72 and rise upto 3.20 a share , especially with First Oil Production started at Saylym 1 year early.

I work for the other Partner in Saylym and I have freinds working on the project.

They have sold all their shares in the Oyster shaped Company and are buying into SBE tommorow.

Keep an eye on their website for news of shareholder meeting today.

I have been in since 16p .

They are giving 1 share for 10 old shares as of tommorow,hence price.

If you actually go to the website and look at the report issued today you will see the 2.72 target price has a huge 'Russian ' Factor in that keeps the price down. This report was prior to early production start.

Have received the e-mail update from Sbe and Cannacord now! The target price of 2.72 is set out in there publication. Can we assume that the market will agree?

I think it will go higher ,

If you report the report they have been very cautious with this target.

Look at the Rised and Non Risked Targets.

This report has not taken into account early production start up of 1 year, so cash flow will be substantially better than forecast.

I have alot more info on Saylym via my job with SBE partner and the drilling results are looking much better than first forecast.

With Shell being involved I think it will hot 3.20 ish

well what happened ? no 2.72 . Good stuff.

Give it time. There are problems with online dealing at the Moment .

I just had to trade over the phone and it took ages to sort out.

The shares at this price are a bargain.

I had the same problem...took forever.

SPD begins oil production at West Salym field a year ahead of schedule
15-Dec-2004
Salym Petroleum Development N.V. (SPD) has reached an important milestone in the development of the Salym Group of oil fields in Western Siberia. One year ahead of the schedule SPD commenced oil production from wells in West Salym, the largest of the Salym fields.

--------------------------------------------------------------------------------



Salym Petroleum Development N.V. (SPD) has reached an important milestone in the development of the Salym Group of oil fields in Western Siberia. One year ahead of the schedule stipulated by the License Agreement, SPD commenced oil production from wells in West Salym, the largest of the Salym fields. Putting producing wells into operation early will ensure SPD not only achieves the production levels stipulated by the Technological Schema (Field Development Plan) but also acquires new data on the pay zone characteristics, well rates and other key parameters and thereby be best prepared for full-scale commercial development of West Salym.

The oil produced from the initial wells will be exported by road tankers from West Salym to Upper Salym for further shipment to customers. This oil evacuation pattern will be continued until the Central Processing Facility (CPF) in West Salym and the oil export pipeline have been commissioned. This pipeline will transport the oil from the CPF to a tie-in into the Transneft main trunk pipeline system at Yuzhny Balyk Booster Station.

The construction of these essential field infrastructure facilities is now under way. Simultaneously, drilling operations are continuing on West Salym well pad 20, and another two drilling rigs are on schedule to be mobilized early next year to increase the drilling scope. As a result, new well pads are being built as well as infield roads and other facilities.

"The start of oil production from West Salym is a major achievement that we can be proud of", commented SPD's CEO Dale Rollins. - "This is the result of combined efforts of SPD and our Russian contractors. Within a relatively short timeframe, just over 1 year, a huge work scope has been carried out to put West Salym surface facilities in place. We will continue to increase the development pace, ensuring in the process compliance with the Russian environmental protection regulations, SPD Health, Safety and Environment standards, and with due regards to the needs of the indigenous people. Our next important milestone is the completion and commissioning of the CPF and oil export pipeline, which will enable us to sharply increase oil production and respectively commercial revenues from the Salym Project".

Salym Petroleum Development NV is a company established on a 50:50 basis by Shell Salym Development B.V. and OAO NK Evikhon controlled by Sibir Energy. SPD holds production licenses for all three of the Salym fields, which are located in the Khanty-Mansiysk Autonomous Okrug in Western Siberia, 190 kilometres from the town of Nefteyugansk. It includes West Salym, Upper Salym and Vadelyp.

Development and production from Upper Salym has already begun, and Vadelyp production is due to start in 2006. The production from West Salym, the biggest in the Salym group of fields, is expected to peak with at least 120,000 barrels per day by 2009.

SPD began intensive field development work in the autumn of 2003 after SPD shareholders had taken the decision to proceed with the Salym fields under the tax/royalty regime and approved the budget in excess of US$ 1 billion. Since then both SPD and the Salym Project have progressed at a rapid pace. From an organization with 15 staff in early 2003, SPD has grown to a large company with offices in Moscow, Tyumen, Nefteyugansk and Khanty Mansiysk. Currently, some 500 Russian and foreign specialists work in SPD.

An all-season 50-kilometer road, energy supply facilities, storage tanks, field camps, a helipad and other major field infrastructure facilities were put in place in West Salym. Drilling operations are ongoing as well as construction of new well pads, infield roads and the Central Processing Facility (CPF). The CPF is designed to handle West Salym's planned production of 6 million tonnes of crude oil per year with an option for expansion to 9 million tonnes per year after Upper Salym and Vadelyp fields have been tied-in. The construction of a 90 kilometres long oil export pipeline is under way. The pipeline will transport the oil from the CPF to the Yuzhny Balyk Booster Station, the point of a tie-in into the Transneft main trunk pipeline system.

Investments in the Salym Project will total US$330 million in 2003-2004. The majority of the funds are used for payments for the goods and services of Russian contractors and subcontractors of SPD. Some 800 large and small Russian companies, firms and research and development institutes, mainly from Western Siberia and the Urals as well as from Moscow, Saint Petersburg and other cities, are now working on the project. Federal and regional budgets have already been receiving tens of millions of dollars in taxes and fees paid by SPD contractors. The region's community development also benefits from SPD's activities. SPD has committed US$2.5 million for community development purpose in 2003-2005.

US$278 million will be allocated for the operations and continued development of the Salym Group of oil fields in 2005.

keeps saying STOCK NOT TRADED!!!!!!!!!

I had to go through to the 3 people and direct to the floor to get the trade .

Barclays and i think all other online traders etc, have not dealt with the 10 for 1 share result of yesterdays agm , I am showing 650% profit on my holding i had from Jan this year.

Trading difficulties are keeping the price down.

STILL NO JOY! bloody hell!!!!!

HSBC were OK but I had to accept 197p (at best) - lets hope trading difficulties improve as currently not looking healthy

Hoodless Brennan were ok with dealing. I bought at 197p.

I see sellers aren't suffering the same difficulties as buyers.

From Telegraph:-

The oligarchs battle for oil
(Filed: 19/12/2004)


Tchigirinsky lost an oilfield and his Aim listing. He tells Simon Bell that he's back in the market



For a man who has mislaid an oilfield, Chalva Tchigirinsky, the Moscow tycoon, is showing remarkable sang froid. Eight months after the shares in Sibir Energy, his joint British and Russian company, were suspended on the Alternative Investment Market (Aim) in London due to the oilfield's disappear- ance, he is back in town to re-list Sibir on Tuesday as "a stronger, better and more efficient company than before".

Tchigirinsky's problems began earlier this year when Sibir's stake in the Siberian oilfield Yugra, which had started at 50 per cent - worth an estimated $111m (57.2m) - was massively diluted, so that Sibir eventually ended up with less than 1 per cent of it.

What appears to have happened is that Yugra issued new shares to Sibneft, the oil company belonging to Roman Abramovich, Tchigirinsky's partner in Yugra. "Sibir's interest in Sibneft-Yugra has been misappropriated and we will have it back," he said at the time.

The passage of time has cooled his temper. "I was extremely angry," Tchigirinsky says, in an interview with The Telegraph. Alleging that the deals that allowed Abramovich to seize control were unfair, he says: "I thought Russia was through that period of its history."

Sibneft insists that it has done nothing wrong: "There were a whole bunch of agreements between ourselves and Sibir's shareholders. Everything Sibneft has done since then has been in accordance with those agreements."

Tchigirinsky asked Sibneft to return his oilfield. "I met Eugene Shvidler [Sibneft's chief executive] at the airport and he said he knew nothing about it. He even denounced it," Tchigirinsky says.

For several months, in fact, Sibneft denied seizing Yugra until, in June, the company disclosed that it was indeed the owner of the new shares.

With several court cases pending in Moscow, the energetic 55-year-old Tchigirinsky - whose stake in Sibir, where he is a non-executive director, is set to rise to 52 per cent next week - is bullish. "I expect 90 per cent of our shareholders have written off Yugra," he says. "We haven't written it off. I'm 100 per cent certain we'll get Yugra back."

If the tycoon succeeds, he will restore a jewel to Sibir's portfolio. Before April, Sibir's shares were trading at 28p; about 6p represented Yugra.

By contrast with some of his overnight-billionaire compatriots, Tchigirinsky has come slowly to riches. Born in Georgia, he swiftly moved to Moscow then lived in Germany until 1988, where he gained experience of foreign businesses and investors. He set up his construction company, S&T, co-owned with a German banker, in Moscow at the beginning of the 1990s and soon forged a strong relationship with the Moscow City Administration, in particular, with Yuri Luzhkov, the powerful mayor of Moscow.

In the maelstrom of Muscovite politics, Tchigirinsky is wary of committing himself to any political position. "I play billiards with Luzhkov," he says cautiously. "The last two times he beat me."

But there is no doubt that this carefully nurtured relationship with Luzhkov, an old-style city boss, has enabled him to win many prime sites in Moscow for redevelopment. In the 1990s he built four of the biggest new office blocks to house international companies, as well as the famous Alexander House, a mansion he built for the oligarch banker Alexander Smolensky.

After Smolensky's fall, the house became Vladimir Putin's presidential campaign headquarters. Now Tchigirinsky has acquired the most prestigious site in Moscow, the Rossya Hotel next to the Kremlin. "I hope the British architect Lord Foster will be designing the new development."

But, according to Tchigirinsky, it wasn't all easy. "In the early days," he says, "we didn't have the money to pay contractors. One night I went to a casino, the Club Royale, and won a few thousand dollars. I went back 19 times and won every time and was able to pay."

Tchigirinsky's good relations with Luzhkov yielded the greatest prize of all, however, in the Moscow Oil and Gas Company (MOGC), which came complete with Moscow's only oil refinery. Owned jointly by Sibir, Moscow City and Abramovich's Sibneft, MOGC became the focus of a fierce nine-month battle between Luzhkov and Abramovich for control of its management. Luzhkov and Tchigirinsky won.

"I think this was the source of Abramovich's actions over Yugra later," he says. By depriving Tchigirinsky of Yugra, Abramovich also deprived him of an asset that the company was a "pledge or consideration" for the important stake in MOGC.

It is a testament to the closeness of Luzhkov and Tchigirinsky that the mayor this year accepted another Sibir oilfield of far less value than Yugra as the tycoon's "pledge" for MOGC.

Meanwhile, Sibir Energy also has strong partnerships with Western oil companies. There is a joint venture with BP in Moscow's petrol stations and a promising joint venture with Shell in the huge Siberian Salym oilfield.

Sibir's strengths lie in the fact that none of the company's oil assets were taken from the state in the alleged scams of the 1990s. But that didn't make is any easier for it to hold on to Yugra.

Meanwhile Tchigirinsky's close partnership with Luzhkov will not be quite so valuable when the mayor finally stands down. It remains to be seen if the tycoon's excellent talent for forging connections will work with a new mayor. As Henry Cameron, Sibir's chief executive and a Scot, says: "In Russia you can expect anything."

From Telegraph:-

The oligarchs battle for oil
(Filed: 19/12/2004)


Tchigirinsky lost an oilfield and his Aim listing. He tells Simon Bell that he's back in the market



For a man who has mislaid an oilfield, Chalva Tchigirinsky, the Moscow tycoon, is showing remarkable sang froid. Eight months after the shares in Sibir Energy, his joint British and Russian company, were suspended on the Alternative Investment Market (Aim) in London due to the oilfield's disappear- ance, he is back in town to re-list Sibir on Tuesday as "a stronger, better and more efficient company than before".

Tchigirinsky's problems began earlier this year when Sibir's stake in the Siberian oilfield Yugra, which had started at 50 per cent - worth an estimated $111m (57.2m) - was massively diluted, so that Sibir eventually ended up with less than 1 per cent of it.

What appears to have happened is that Yugra issued new shares to Sibneft, the oil company belonging to Roman Abramovich, Tchigirinsky's partner in Yugra. "Sibir's interest in Sibneft-Yugra has been misappropriated and we will have it back," he said at the time.

The passage of time has cooled his temper. "I was extremely angry," Tchigirinsky says, in an interview with The Telegraph. Alleging that the deals that allowed Abramovich to seize control were unfair, he says: "I thought Russia was through that period of its history."

Sibneft insists that it has done nothing wrong: "There were a whole bunch of agreements between ourselves and Sibir's shareholders. Everything Sibneft has done since then has been in accordance with those agreements."

Tchigirinsky asked Sibneft to return his oilfield. "I met Eugene Shvidler [Sibneft's chief executive] at the airport and he said he knew nothing about it. He even denounced it," Tchigirinsky says.

For several months, in fact, Sibneft denied seizing Yugra until, in June, the company disclosed that it was indeed the owner of the new shares.

With several court cases pending in Moscow, the energetic 55-year-old Tchigirinsky - whose stake in Sibir, where he is a non-executive director, is set to rise to 52 per cent next week - is bullish. "I expect 90 per cent of our shareholders have written off Yugra," he says. "We haven't written it off. I'm 100 per cent certain we'll get Yugra back."

If the tycoon succeeds, he will restore a jewel to Sibir's portfolio. Before April, Sibir's shares were trading at 28p; about 6p represented Yugra.

By contrast with some of his overnight-billionaire compatriots, Tchigirinsky has come slowly to riches. Born in Georgia, he swiftly moved to Moscow then lived in Germany until 1988, where he gained experience of foreign businesses and investors. He set up his construction company, S&T, co-owned with a German banker, in Moscow at the beginning of the 1990s and soon forged a strong relationship with the Moscow City Administration, in particular, with Yuri Luzhkov, the powerful mayor of Moscow.

In the maelstrom of Muscovite politics, Tchigirinsky is wary of committing himself to any political position. "I play billiards with Luzhkov," he says cautiously. "The last two times he beat me."

But there is no doubt that this carefully nurtured relationship with Luzhkov, an old-style city boss, has enabled him to win many prime sites in Moscow for redevelopment. In the 1990s he built four of the biggest new office blocks to house international companies, as well as the famous Alexander House, a mansion he built for the oligarch banker Alexander Smolensky.

After Smolensky's fall, the house became Vladimir Putin's presidential campaign headquarters. Now Tchigirinsky has acquired the most prestigious site in Moscow, the Rossya Hotel next to the Kremlin. "I hope the British architect Lord Foster will be designing the new development."

But, according to Tchigirinsky, it wasn't all easy. "In the early days," he says, "we didn't have the money to pay contractors. One night I went to a casino, the Club Royale, and won a few thousand dollars. I went back 19 times and won every time and was able to pay."

Tchigirinsky's good relations with Luzhkov yielded the greatest prize of all, however, in the Moscow Oil and Gas Company (MOGC), which came complete with Moscow's only oil refinery. Owned jointly by Sibir, Moscow City and Abramovich's Sibneft, MOGC became the focus of a fierce nine-month battle between Luzhkov and Abramovich for control of its management. Luzhkov and Tchigirinsky won.

"I think this was the source of Abramovich's actions over Yugra later," he says. By depriving Tchigirinsky of Yugra, Abramovich also deprived him of an asset that the company was a "pledge or consideration" for the important stake in MOGC.

It is a testament to the closeness of Luzhkov and Tchigirinsky that the mayor this year accepted another Sibir oilfield of far less value than Yugra as the tycoon's "pledge" for MOGC.

Meanwhile, Sibir Energy also has strong partnerships with Western oil companies. There is a joint venture with BP in Moscow's petrol stations and a promising joint venture with Shell in the huge Siberian Salym oilfield.

Sibir's strengths lie in the fact that none of the company's oil assets were taken from the state in the alleged scams of the 1990s. But that didn't make is any easier for it to hold on to Yugra.

Meanwhile Tchigirinsky's close partnership with Luzhkov will not be quite so valuable when the mayor finally stands down. It remains to be seen if the tycoon's excellent talent for forging connections will work with a new mayor. As Henry Cameron, Sibir's chief executive and a Scot, says: "In Russia you can expect anything."

Now thats much more like it 205p - Merry Christmas

Yo, we still got stuffed. If the asset base and potential are the same why cut the value. Market makers get all the fun and profit. Still brought some more at 1.96 so in for the long hall. Good luck all you other gamblers and happy xmas.

I could nt but these for love nor money yesterday! on line no joy, i guess there would be a lot of others out there in the same position as me, and that would effect the Sp! this will rise when people can buy them!!!!!

She is on the way up! 235.50p and still rising.

wilbs

Sorry all but I am so hung over.. saw these gallop up yesterday & again steaming away today. Now in my fragile state could someone briefly explain where these are heading. Have I missed the boat.. I know I should do some research but by the time I have done so these will have plateau'd. Whats the guide price? I am after a short term stock.

Thanks

Chris

Check their website out.

www.sibirenergy.com

some people have suggested 260p to 360p. Only time will tell.

wilbs

Thanks Wilbs.

No probs chrispine. Also you may like to look back on this thread and also on Ample/iii bb. If your not registered with em, let me know and I will paste some stuff for you later.

wilbs

That would be brilliant if you could paste Wilbs as I am not registered. I know its a lazy way to trade & not an advisable one but I am most grateful to you for your trouble.

Chris

No probs. Im now popping out for an hour to get my last xmas shopping done so will past some stuff later.

wilbs

Is SBE getting any easier to buy for anyone else out there. It took be 15 mins this morning to get a buy 10000 @ 235p in for the ride. (228 when i picked the phone up) Fingers crossed

Here you go chrispine, hope its some help. Sorry if its been posted on here before.

All from ADVFN

....so says the headline in the Sunday Telegraph. The news is that that Moscow tycoon Chalva Tchigirinsky is back in town to re-list Sibir on Tuesday as a "stronger better and more efficient company than before". He is a non-executive director whose stake in Sibir is set to rise to 52 per cent.
The article highlights the problems with Sibir's diluted stake in the Siberian oilfield Yugra. Tchigirinsky alleges that the deals that allowed Sibneft (the oil company belonging to Roman Abramavich) to seize control were unfair. He says "I thought Russia was through that period of its history" and adds "I expect 90 per cent of our shareholders have written off Yugra but I am 100 per cent certain we'll get Yugra back". If the tycoon succeeds, he will restore a jewel to Sibir's portfolio. Before April, Sibir's shares were trading at 28p, about 6p representend by Yugra.
------------------------------------------------------------------------------
I have been spending time reviewing the pattern of trades today re SBE.Large buys and sells in fairly equal measure indicate that traders are quietly making a few quid knowing that this could go for quite some time.As a long termer my view is that this is a no-brainer.Middle East supplies are going to be fraught for the foreseeable future.Notice how its all gone quiet on the Ukranian Front.Watch Bush cuddle up to Putin.He needs the Salym field and others he can get his trading hands on.USA and Russia need each other badly.which is where Sibir and others like it are going to be 'stars' of the future.Russia represents relative stability compared to the hell that Saudi,Iraq et al are going to be Medium Term.I would be surprised if this share did not do extremely well from now on.
-------------------------------------------------------------------------------
Investors in Sibir agree fee of 15m
By Christopher Hope, Business Correspondent (Filed: 21/12/2004)


Shareholders in Sibir Energy yesterday agreed to pay $29.1m (15m) to a Russian businessman for arranging a $150m loan package which stopped the company losing control of its second Siberian oil field in a under a year.



Henry Cameron, Sibir's chief executive, said that banks were unwilling to lend competitively after Sibir lost nearly all of its 50pc stake in a venture with Russian oil company Sibneft in the Pirobskoye field in western Siberia.

Instead, Chalva Tchigirinski, Sibir's biggest investor, found the money. In return he is being paid the fee in shares, taking his stake from 42pc to 52pc, and dilluting everyone else by 3pc.

Speaking at a meeting to approve the deal, Jeremy Le Sueuer, fund manager at Church House which controls 650,000 shares, complained of not enough "justification" for the payment.

However, Mr Cameron stressed that Mr Tchigirinski's fee was half the price charged by banks.

He said that without the fresh funds Sibir would have had to hand its 50pc stake in the 800m barrel Salym oil fields to Shell. "We had to find $130m to meet our share of the Salym development to avoid dillution by Shell," Mr Cameron said.

Shares in Sibir, which have been suspended since April, are due to resume trading on the Alternative Investment Market this morning. Mr Cameron promised a rosy future for Sibir's investors telling them that turnover could jump from $250m to $1.5billion in "three to five years time".

The company's downstream business, which includes 25pc of 40 BP petrol stations in the Moscow area, is doing well. The petrol stations alone made $2m on turnover of $8.5m in November.

Mr Cameron, 65, said the year had been the toughest of his business life, adding that he had offered to quit over the loss of the stake in the Pirobskoye field, which had been held in a joint venture with Chelsea FC owner Roman Abramovich's Sibneft.


wilbs

Thanks for that Wilbs.. hope your shopping trip didnt prove too grim.. I couldn't face it today so will leave it until the last minute.. as usual. I'll wait a bit for the price to dip that bit further & hope to catch it on the up.

Chris

Thats ok chrispine, hope it was some help. Shopping was as grim as it always is. Hope the hangovers getting better. Im sure its one of many to come over the festive period.

wilbs

Amongst all the reports of a missing oil well and possible civil suits at least SIBIR are getting on with the job in hand. A considerable amount of investment is forthcoming and maybe not before this New Year but maybe next New Year if SIBIR get ahead of schedule this company will be rolling out the barrels. Meanwhile we should relax and roll out a few barrells ourselves. Merry Christmas and Happy New Year to all 'Posters'
Sibir says development plan for North Vadelyp oil field in Siberia approved
AFX


LONDON (AFX) - Sibir Energy PLC said the board of Salym Petroleum Development NV, in which Sibir unit Evikhon has a 50 pct stake, has approved a development plan for the North Vadelyp part of the Vadelyp license area in western Siberia.

The board comprises equal representatives of the Royal Dutch Shell Group and Sibir.

The board further approved a lifecycle capex budget for the North Vadelyp development of 249.2 mln usd, including a 2005 capex budget of 12.3 mln usd.

SPD expects that most of the North Vadelyp budget will be expended after SPD becomes self funding.

The 'Integrated Development Plan' covers the development of the North Vadelyp field as a satellite development of West Salym, with first production forecast for October 2006.

Peak production of oil is around 18,000 barrels of oil per day. Cumulative oil production until 2033 is estimated to be 104 mln barrels. Peak production from all three licences is forecast at 150,000 bpd, it said.


WOULD ANY ANALYST OR SIMILAR BE ABLE TO SAY WHAT THE ESTIMATED INCOME AND POSSIBLE SP BE IF THE ABOVE WORKS OUT AS PLANNED.

From Rigzone.com




24.12.2004
Sibirs Annus Horribilis Brightens As Production Starts Early At West Salym
A difficult year looks set to end a little brighter for Sibir Energy - which has finally resumed trading on Londons Alternative Investment Market after its shares were suspended in April - with news that the West Salym field in Western Siberia has started production a year ahead of schedule.

The field is one of three under development by Salym Petroleum Development (SPD), a 50/50 joint venture between Shell and Evikhon, which is now 100 per cent owned by Sibir.

The company has suffered something of an annus horriblis in 2004. In April it discovered that a corporate raid had mysteriously diluted its 45 per stake in an upstream joint venture with Russian oil baron Roman Abramovichs Sibneft to just 1 per cent; one analyst said Sibir, which had only recently emerged from a cash crunch, had been robbed blind.

The problems with the Sibneft-Yugra JV have had far-reaching implications for the British company, which had put up its share in the JV, valued at US$111.5 million, as collateral for 45 per cent of the new Moscow Oil & Gas Co (MOGC). The companys partner in MOGC, the city-controlled Central Fuel Co, agreed to put in its downstream interests, including the critical Moscow Refinery, into the new venture, which Sibir saw as a lynchpin in its future growth plans. Sibir has long been sought to build a fully integrated oil company in Russia and the formation of MOGC was seen as key to realizing this vision.

With Sibirs collateral somehow vanished the exact circumstances are still unclear - the company worked hard to salvage the MOGC deal. It has taken eight months of negotiations and complex deal-making in order to get the company back on track.

In June 2004, it agreed to subscribe US$184 million for its shares to be satisfied by the contribution of its interest in Magma Oil Co, valued at US$180 million, and cash, as well as injecting 25 per cent of its Evikhon asset into MOGC. As a result, Sibir will hold 70.6 per cent of MOGC.

Meanwhile, Sibirs financial position was shored up in August when Bennfield, owned by Russian investor Chalva Tchigirinski, gave notice that it would exercise its right to subscribe for 171,647,731 ordinary shares, resulting in a cash injection of 20 million. This cash was used to cover cash calls for the development of the Salym oilfields. Bennfield now holds a large stake in Sibir, giving some analysts cause for concern about the rights of minority shareholders; the company is not governed by the provisions of the Takeover Code.

The companys books have also been enhanced by results from Sibirs trading division, which was created in March, prior to the shock discovery of April, to trade products refined at the Moscow Oil Refinery. That initiative has proved highly profitable: in the seven months to September 30 2004, the trading division has contributed some US$21 million in gross profit from the processing of crude oil and the sale of oil products.

Sibir has also taken steps to boost its shareholding in Evikhon, through the US$153.3 million acquisition of Hitchens Global, which has an 8 per cent stake in Evikhon and is currently owned by Bennfield, and the purchase of a 10 per cent interest in Evikhon from the UKs Dana Petroleum. These two deals will cement Sibirs 100 per cent ownership of Evikhon, which holds 50 per cent of SPD and, in the view of Sibirs management, is one of the best new field developments in Russia.

The proven and expected reserves attributable to Sibir through its interest in Evikhon put Sibir ahead in terms of reserves of most of its UK quoted sector peer group, the company said in a statement. Once Sibir begins production at the Salym oil fields in 2005 the board expects Sibir to be similarly highly ranked in terms of production.

SPD's proven and expected oil reserves stand at 657 million barrels of oil, a figure thats dwarfed by the official Russian reserve estimate of 1.1 billion barrels. The Russian reserve number includes reserves from the extensive
oil in place in the Salym fields' deeper Achimov reservoirs, which the operators want to appraise further before committing to numbers.

West Salym, which has now started producing, is the largest of the Salym fields, the others being Upper Salym and Vadelyp. Development and production from Upper Salym has already begun, and Vadelyp production is due to start in 2006. With high volume production starting within the year, it is expected that SPD will become cash flow positive by the end of 2006.

The oil produced from the initial wells on West Salym will be exported by road tankers until the Central Processing Facility and 90 km oil export pipeline, now under construction, have been commissioned. The CPF is designed to handle West Salyms planned production of 6 million tonnes of crude oil per year with an option to expand to 9 million tonnes per year after the Upper Salym and Vadelyp fields have been tied-in.

The pipeline will transport the oil from the CPF to the Yuzhny Balyk Booster Station, which ties into the Transneft main trunk pipeline system. At this point, output from the field will sharply rise heading towards peak production of at least 120,000 barrels per day by 2009. Drilling operations are continuing on West Salym and another two drilling rigs will be mobilized early next year to hike drilling rates. New drilling pads, infield roads and other facilities are also under construction.

Working in this remote area, on these huge oil deposits, is no trivial matter. There is a US$1billion price tag on the development of the Salym fields and the workforce has grown from 15 in early 2003 to around 500. An all-season 50 km road, energy supply facilities, storage tanks, field camps and helipad have been constructed.
Sibir reckons it will need a further US$202 million over the next two years to fund its share of the Salym oilfield costs. The company is in advanced negotiations with international banks to provide a facility of $75 million which would convert into a project finance facility of $150 million to fund the Salym Oil Fields. However the company has agreed a back up bridge financing deal with Bennfield should the banks fail to conclude a financing facility.
In addition to its upstream investments, Sibir has taken steps to enhance its downstream holdings. Through the Hitchens acquisition, Sibir has secured a 12.5 per cent stake in Mostnefteprodukt, an oil distribution and retail company part-owned by the MOGC Group. Sibir is keen to expand its down stream interests in the fast-growing Moscow market, which is already the biggest oil market in Russia. The Hitchens deal also brings the company a stake in ST Oil Limited, which is in a profitable petrol-station joint venture with BP Russia in the Moscow region.
But for the evaporation of its holding in Sibneft-Yugra, 2004 could have been a real turnaround for Sibir. The company is making money trading refined products, production has started at Salym and it has acquired interests in a host of downstream assets, making good its vision of a fully-integrated oil company. Despite this promise, however, investors will be slow to forget the shocks of April and the harsh and high-risk realities of working in Russia.
[ends]

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Is this a Christmas bonus announcement after the close of trade that will make investors/shareholders a little happier.

Maybe this will be something for the shareholders to discuss at the meeting on the 18th January 2005 as well as the mislaid or misappropriated (to someone else) oilfield.

Website article:- http://www.sibirenergy.com

24 December 2004



Major contract signed for infield flowlines construction at West Salym
Salym Petroleum Development, a joint venture between Shell and Sibir Energy’s Evikhon, today issued the following press release:

Construction of yet another major field facility at West Salym oil field in Western Siberia will begin in the next few days. This was announced today by Salym Petroleum Development N.V. (SPD), the operator of the three Salym oilfields, the largest of which is West Salym. On December 23, 2004 SPD signed a contract worth over US$ 15 million with “Stroytransgaz” Company for the construction of infield flowlines. Under the contract, “Stroytransgaz” will carry out all works at West Salym on building and hooking up to the well pads both production flowlines and water injection pipelines.

The infield flowlines construction represents an essential element in the implementation of the main challenge SPD has for the next year – to begin full scale commercial oil production from West Salym field in Q4 2005 and thereby ensure compliance with its license obligations. As part of fulfilling this task, intensive drilling operations have been underway at well pad 20, new well pads and infield roads are being built. Also progressing is the construction of the other key field facilities, the CPF (Central Processing Facility) and oil export pipeline, which will transport produced oil to the Transneft main trunk pipeline system.

“The contract for infield flowlines construction is the third major West Salym development contract that SPD signed in the recent two months”, commented SPD CEO Dale Rollins. – “The activities leading to the full scale commercial operation of West Salym are entering its crucial phase. And we are happy to have “Stroytransgaz” and other leading Russian companies with skilled personnel and impressive track record of working in the oil and gas sector as our contractors at this important stage of the Salym Project”.

Note for Editors:

Salym Petroleum Development NV is a company established on a 50:50 basis by Shell Salym Development B.V. and OAO NK Evikhon controlled by Sibir Energy. SPD holds production licenses for all three of the Salym fields, which are located in the Khanty-Mansiysk Autonomous Okrug in Western Siberia, 190 kilometres from the town of Nefteyugansk. It includes West Salym, Upper Salym and Vadelyp.

The production from Upper Salym has already begun. In December 2004, 1 year ahead of the deadline stipulated by the License Agreement, SPD started producing oil from wells in West Salym. The start of full-scale commercial production from West Salym is scheduled for Q4 2005. The production from this field is expected to peak with at least 120,000 barrels of oil per day by 2009. The oil production from Vadelyp is due to start in 2006.

ENQUIRIES:
Salym Petroleum Development NV
Elena Zakupneva, External Affairs Manager
+7(095) 518 97 20 Mob +7(095) 762-91-15

END

Why has the price dropped so much???

Maybe the price now has bottomed out and the buyers are re-appearing. I somehow cant get it out of my head that the Shareholders Meeting on 18th January 2005 has something to do with the confidence in this share. The Shareholders are meeting to discuss confidence in the Sibir Board and what is being done to get back the mislaid oilfield and when answers have been obtained - get ready for this share to move and quickly.

But if the Shareholders had no confidence in the board, then they would not have approved the Re-organisation at the Meeting in December

Lansdownboy, Im only relating what was said in the Press release on Christmas eve or it may have been the day before Christmas eve. The release stated that the meeting was to discuss confidence in the management/board and the loss of the oilfield. The article appeared in the Daily Telegraph. Are you aware of the meeting and if so what other purpose is there for it.

Solid buying of this share all morning even the 128k at 8.07 this morning would appear to be buy wrongly interpreted by mm. Due to Rise in oil prices, i personally don't think so. I think a month or so into its resurrection it will now find its 'just price'. I expect to see steep rises over the next few weeks to a level of 2.30 to 2.70. All in my humble opinion. DYOR

I agree, The Company is in a very strong position, and is undervalued at this price.

Shell is in desperate need to get its Reserves replacement up. Don't be surprised to see bid.

It will be interseting to see the progress of the Legal battle with Sibneft develop over there Oil Field Steal.

A Furious Pace in Western Siberia
27-Jan-2005
Salym Petroleum Development

--------------------------------------------------------------------------------





The Salym project in Western Siberia grew from a few dozen people to over 200 in 2004. The $1 billion project will see the development of these discovered, but never developed, fields peaking at around 120,000 barrels per day. Oil production commenced in December, ahead of schedule.

The Salym group of oilfields includes the West Salym, (discovered in 1987), Upper Salym (discovered in 1966) and Vadelyp (discovered in 1989) fields. Licences for the development, awarded in 1998, are held by Salym Petroleum Development NV (SPD), a 50:50 joint venture between Shell and OAO NK Evikhon, a subsidiary of Sibir Energy. The potential is large; recoverable reserves amount to 153 million tonnes. The oilfields are expected to have a life of about 30 years.

This quarter will see the construction of a 90-kilometre, export oil pipeline linking the West Salym oilfield to the Transneft trunk pipeline system as 40% of production is destined for export. Drilling operations are also being stepped up with another two rigs being mobilized to increase scope.

The project will contribute significantly to the Russian economy. Besides the required taxes and royalties that SPD pays to the Russian authorities, the JV is also using predominantly Russian services for the project. Currently around 78% of SPD staff are Russian with the plan to be over 90% in the next couple of years. By the end of the project, well over 75% of the capital will have been expended on local equipment.

In working in Western Siberia, Chief Executive, Dale Rollins, feels that, the learning curve has been very steep and were climbing it rapidly there is no choice. Things you tend to take for granted for example hydrotesting a tank arent so simple when its minus 35 degrees. We have many experienced Russians working for us and were learning fast.

Sustainable development and contributing to the local community is a key part of the project. SPD has begun building a kindergarten for 210 children, renovated schools and donated equipment to schools and a local hospital. It is also looking to establish a micro-credit scheme and has other ideas to help local businesses.

For more information on Salym, see Shell in the CIS, Issue number 4, December 2004.


EA/27.01.05

Why has this dropped 3.5% today?????

MM's having a giraffe with this share, down 6p this morning pulled it back and the sp is 165p. Building up a large stockpile of shares expecting good news soon maybe.

Looking at Shells Proved reserves. Then Salym now accounts for 4% of their proved reserves portfolio.

This project is the only project of their current portfolio that has Total Green KPI's on all front's.

Don't be surprised at all of a Bid.

lansdownboy, (a good old irish hurling ground) You seem to be HURLING a takeover around but what makes you feel that there will be a bid on this one surely SIBIR would be better offer going on its own with the russian backing. I think that there will be some solid buying tommorrow especially after todays clawback from 6 pts down to 1 pt up 'not alot but better than a kick in teeth. Keep with the faith. You recent post suggest that you work in this field do you have the 'inside' on this one.

I have a living interest in the red and yellow badge operations area, I have friends working on the Salym project.

I don't think Sibir would have the backing to buy Shell out of this Project.

Shell is desperate to get Reserves up quickly and the quickest way is through Aquisitions.And with Sibir having around 400 Mln Barrels share of proved reserves in this operation(Russian Gov estimate 600 Mln including Deeper Salym that hasn't been explored yet)then it would be a good buy especially with how successfull the operation is going and the drilling results so far.Especially with Sibir Shares at current value compared to what the Asset Valuation is.

Evening lansdown, looks like we are having a private party, anyway up 7.5p at the time of writing another clawback toward the purchase price. Have a good weekend

Prediction for the week 'has anyone else got a view' Stirring up a bit of interest I suppose on this company Monday will be a solid buying day and probably a 10p+ (rising on the back of Shells results + Wall Street surge on Friday up 100pts+) then steady toward the week end. DYOR if there is anyone out there. N.B This is not ramping I bought at 2.36 (not in the afternoon) and am in long term until at least 2008. (Unless it hits 10 a share before hand)

Do you think that BP record profits will push SIBIR's price up today.

A day late on my prediction (sorry). Confidence in this share is returning something must be brewing. 3.5million shares bought - 1/4 million sold. Announcement soon, after all this is a company that produces results earlier than expected namely 1 year ahead of schedule

Sibir can plug some of the below stockpile once its infrastructure is functioning at 100%.

NEWS RELEASE 16.38hrs 9/2/2005

Oil futures bounce higher after larger than expected falls in US inventories
AFX


LONDON (AFX) - Oil futures bounced higher after the release of US inventory data which revealed falls in crude stockpiles as well as falls in gasoline supplies ahead of the peak demand season, analysts said.

At 4.10 pm, Brent crude futures for March delivery were up 68 cents at 43.75 usd/barrel.

Jitters over renewed market talk of OPEC cutting production if prices fall too rapidly have caused dealers to trade in higher volumes in the next front month.

April-dated Brent contracts were up 69 cents at 44.05.

Meanwhile US benchmark March-dated contracts were up 63 cents at 46.03 usd/barrel, and April dated contracts were up 54 cents at 46.60.

The Department of Energy reported crude stockpiles had fallen 1 mln barrels for the week ending Feb 4.

The American Petroleum Institute however reported an even greater fall of 4.2 mln barrels.

The DoE said gasoline stocks were up 500,000 barrels, however the API measured a large fall of 4.2 mln barrels.

Distillate inventories were down 3 mln barrels, according to the DoE data, and the API measured a larger fall of 4.2 mln barrels.

'The DoE results were not a big surprise, as the market had anticipated falls in stockpiles which are usual for this time of year, but the API falls were much greater, so the market is erring on the side of caution,' said National Futures analyst John Person.

The results, particularly the gasoline numbers, give rise to concerns that stocks are not adequately building ahead of the peak consumption period during the summer.

'But there are a few more weeks for inventories to get there, the DoE's weren't too bad, but the API's threw salt into the wound, and so for the time being there is still an energy crunch,' Person added.

raki.kotak@afxnews.com

rak/cmr

Good Rise Today,

Trying to find out why

Anyone Ideas?

I love the look of this .

Should get to its true asset value of over 300p at this rate

There you go Landsdowne noe let it take off, being in the Maldives and India for a while I have not ben able to check the website. Found a hotel in Tamil Nadir with an internet. Looks good ----ANY INFO----.

Do know why the rise over the last 2 weeks

i thought this company was in real trouble not so long ago ?????????? but it looks like the russian goverment are not going to step in??? any thoughts

The company is not in trouble from the Russian Gov, It was in trouble from Mr Chelsea. The Gov is more likely to take a stance against Him than Sibir.
I am confident Sibir will win their Legal action against Him.

There operation in Russia is going exceptionally well. Production 1 year ahead of schedule, Proven reserves of over 500 Million Barrels.

I think this share is under price at 3.20.

Read the report on their website about the reorganisation.

thanks very much for the info lansdownboy !!!! i hope you are right ? i brought shares in this company last year at 28p before they changed the price.

Can this be true
copied form the other side.


01/04/2005
16:39 Salym Petroleum Development began to supply oil to the system of oil-trunk pipeline of "Transneft".

-------------------------------------------------------------------------------
Salym Petroleum Development N.V.(SPD) began to supply oil to the system of oil-trunk pipeline of JSC "Transneft" from April 1, 2005, SPD Public Relations Department head Elena Zakupneva reported to AK&M.

Up to the present Salym Petroleum Development has been effected the supply of raw materials to the regional organizations for realization on the domestic market by oil-delivery trucks, omitting Transneft system.


"AK&M", 01/04/2005 14:52

IF IT IS TRUE BETTER GET ON BOARD - PDQ - COULD BE A GUSHER

Well it was true then, heres the Official Release and it includes the additional bonus of the $155m;n USD for further investment. Excellent NEWS - 3.20 to 4.00 possibly by the end of the month.


Shell, Sibir ship first oil from 1.25 bln usd Salym field UPDATE
AFX


(Adding production details)

LONDON (AFX) - The Royal Dutch/Shell Group and Sibir Energy PLC have shipped the first oil from the Salym field in western Siberia.

Development of the field has progressed 'rapidly', with industrial production expected to begin in the fourth quarter of 2005, Sibir said in a statement.

The oil was produced from the West and Upper Salym, two of the three fields being developed by the joint venture. It was trucked for processing and loading into Russia's state-owned Transneft pipeline system on April 1.

Upper Salym is now producing 1,500 barrels per day. Production at West Salym is still 'small scale' and is to build up over the next six months.



Production on the third field, Vadelyp, will begin in the fourth quarter of 2006.

Cost of developing the three fields is estimated to reach 1.25 bln usd in total, of which 480 mln usd has already been spent.

A further 155 mln usd will be invested in the coming months, making a total of 278 mln usd for the entire 2005, it said.

Shell and Sibir each own a 50 pct stake in the project.

mbe/slm/

GOOD LUCK TO ALL SHAREHOLDERS AS IT HAS BEEN A TRICKY SHARE THIS ONE!!!

It is true. See RNS.

Also on Shell Internal Board yesterday.


This is Shell best in clas development.

Also seismic indicates a bigger field below those already indicated.

Lansdown, where have you been - Is there only me and you on this one.

It has gone quiet.

Been bit of a roller coaster ride the last 2 months.

Seems to be very good new( genuine) followed by scare stories !!

If the Seismic is confirmed for the Deep Salym , then reserves will increase big time!! and SP hopefully.

Lansdown, I've a share interest in CSH and COP at the moment held them for the past 8 to 10 weeks, any thoughts on them.

any thoughts as to which direction this will take.

It should continue on the Up.

Read the reorganisation info on the Sibir website and the Assets SP price.

Thia SP ias extremely cheap.

Come Q4 05 when production really steps up at SALYM , Also the crap with MOGC and also the hopeful resolution of the illegal dealings by Roman's Company for the 'Stolen' Oil Field will be resolved.

No reason why SP should not hit 350 by Nov 05.

Thanks for that there seems to be a lot of interest of late in this share and lets hope it carries on upwards.

Patience is required with this share, but there is tremendous upside once the City believes that it now has good control of its assets.

Would anyone like to touch this share with my bargepole

Sibir energy up 2p today to a tad under 2 pounds. I really do see that this share will take off, every possibility that it will be immininently as we head into Mid june. The second half of the year. Sibir is extremely fortunately that it has a skilled, local workforce who want this company to succeed wether it be under the SIBIR umbrella or another russian company umbrella. It is at the moment a very weak price making it susceptible to a takeover and maybe that maybe the root behind all the in house problems. SIBIR I believe will go it alone, but the interest in it and/or its potential is fast approaching. A GOOD SHARE like this one can only be held back for so long so its now time to buy. I'm confident I have 10000 which I bought at its peak at 2.365 in December 04 still waiting, but still confident. DYOR

A considerable amount of black buying, every share sold is being snapped up - GET READY FOR LIFT OFF - GOOD NEWS IN THE 'PIPELINE' (excuse the pun)

http://www.spdnv.ru/en/

Website of the Salym Project

This is on the move really, bankone.

Anyone know the outcome of the action against SBE which was taken by London legal firm acting for a client which they refused to name ?

Court case put back to sept. 2005 in B.V.I.,I i understand.

mb
I thought that the BVI case was being pursued by SBE against Mr Chelsea etc. The one I was referring to was against SBE and seemed clouded in mystery. SBE went to Court to find out who the pursuer was.At least that is my last memory before going on hols.

Double click on SBE and read recent RNS ETC.

See also todays RNS.

Thanks for pointer.
Never seen an RNS like Camerons before, must have led a sheltered life.The real question remains . How did it happen and what is probability of restitution ?
Meanwhile SBE keep pumping the oil and dont ignore the current account would be my plea.

Wait for court case in Sept.2005.

No followers on this site - been in SBE since 7p - (consolidation apart not doing so bad. Nice mover over the last week more to come ANTON has it as a buy at 2.78 + 10%. Therefore a 3.15p a share target without news from the Theft of asset and the connection to Mr A. The BVI result is awaited but they may take months but the Harley street Class Action failed. I don't believe the SP rise was due to that, I believe Flow raes are imminently due to be announced and together with the $70 dollar Barrell this share is going to motor and quickly. This is a gusher and a half providing the Russkies don't tax its boll**ks off. Good luck to anyoneeeeeeeeeeeee outtttttttttttttt thereeeeeeeeeeeeee stilllllllllllllllllllllll holdingggggggggggg. Hello ---- Hello. DYOR

WHAT AN EXCELLENT RNS - but it would appear to be wasted on thios B&B No takers - No one is listening. This share is going to go ballistic tomorrow, ALL the M and B and X and R buys that have gone through recently, The MMs can't get enough of this share. Its gonna explode and rightly so a long time waiting but here she goes.

Not wasted B1
This long term holder is watching a unique story unfold
We are back to the pre-MrChelsea position

Hello Sunray Lot of talk on this share on other B&B as you probably know with talk of an exceptional rise tommorrow and the MMs trying to get them on the cheap prior to a court result or an out of court result from Mr A. Tipping them to rise another 15/25/50p some are talking 4pounds. This is not a ramp. I bought SBE a long time ago as a pension fund not a lot of shares but 10,000 shares and I will not be selling this share until 2009 come what may. I believe as I'm sure all long term investors in this one believes that its a special little gem with all solid foundations in place. Any company worth its metal is always open to business fraud and like everyone says when it happens I never thought it would happen to me. You don't get a knighthood in commerce if your crap. Sir Henry knows his way around the legal entities also and knows exactly where he stands with them. He knows and believes in the restoration of Sibirs asset to its rightful owner *****SIBIR*****
The building blocks are there, the infrastructure is there, the product is there, the pipeline is there, the flow rates are there, the demand is there, the price is exceptional and tipped to reach $100 plus a barrell, and best of all Sunray41 you and I are here too. Good luck and stay with it as long as you can. Cheers heres to tomorrow.

Another day another dollar, in fact 19p. Press releases are suggesting that SBE lawyers will get something back for their stolen asset when it eventually hits the court process. Perhaps Mr A is capitulating under pressure from Mr P as bad publicity is all the 'K ' wants at this time. China is a fast growing GDP area which requires a lot of oil as it does not have any reserves whatsoever. Russia is ideally placed to supply it what it requires at a price and that includes a benefit to shareholders. Profit takers in to day when it reached its high of 3.37p that will pail into insignificance once the flow rates are announced and the asset returned. FTSE 100 here we come.

Will try and get update from Colleagues in the Field in Siberia with regards Project updates. Like BANKONE ,we have been sitting on this baby for a long time. Can't believe no one else is getting in. You only have to read SIBIR report coming back into the market of what its true worth is.

Sir Henry is as cute and canny as a cart load of monkeys - what a way to get the K on their side as well as Mr P. Honourable thing to do at a time when come sept 20th he will want as many honourable people as possible in his corner against Mr A.
This sweetener of 16m (24mUS$) properly incurred debt has been settled. This will enable this company to move progressively forward honourably and prove that SIBIR is legit, does not take its liabilities lightly and rather than tax avoidance, multi company wrangling and downright theft like Mr A, Sir Henry stands head and shoulders above them all. Might not inform the PI regularly but if I knew I had got something good I would let the product/company do the talking and right now SIBIR is 2p down after shelling out 24mUS$ coupled with some profit takers is not a bad result for today. Its like my old dad told me, god rest his soul, if your earning the big bucks you can afford the stoppages. If only I were????? but never mind hopefully SIBIR will help me put my feet up in retirement. Good luck to all SBE holders, I think tomorrow will show a slight profit as Friday is renowned for its profit taking. I'm long term in this so I have no need to ramp it as I believe in this share and have done for some considerable time. I believe there is 15pound in this share and FTSE 100 material to come - Not yet 2007 maybe but I'll still be in it, might have taken my original stake out but I'll remain.

Another good day against the "powers of darkness"
SBE senior mgt are certainly directing a good campaign
Don't know where this will get to B1, but like you I am sticking with it.

Any news of BVI court case due to start on sept. 1 s what i understand,B1 or SUNR.

Cannot find any news, I guess we all keep watching

I think it is tommorrow or Friday that the class action plaintiffs ( Now ruled out of court) have to be identified on the order of the trial judge, this should be an interesting revelation, if Class law identify its plaintiff - if they don't I suppose a massive fine is imposed if is the case that Mr A or some other of his cronie that can be linked to him. If Class Law stay stum the fine will be paid by you know who.
The three day BVI case on or about the 20th will possibly just be a direction hearing and applications by defence and prosecution for my time etc, stringing the case along unless Mr A wants to fold his hand. Compex fraud cases which this one will be may take years to sort out and I'm sure you don't need informing of this - however the results are due 30th of this month and they are nigh on guaranteed to be exceptional with other good news relating to the pipeline and the refineryies couples with drilling news on the well they are currently running. Good month ahead - I don't believe this share has peaked yet there is still plenty of upside according to ANTONS review which values the share at $6.78 approx 3.66 as of todays standing with good news along the way 4.50 should not be a problem. Buys outweighing sells 3 to 1 and plenty of M,B X VW and T buyers some of which have been at a premium to the buy prices. Good luck to all sibir holders.

Agree with your assessment B1
Anything which comes out of the Court could take years to conclude - meanwhile the real business looks to be on lift-off.
The essential thing for their business team is to remember they have a real business to run and let the legal team deal with the other "affair"
which has all the looks of a novel or a film script.
Friday could be an interesting day and maybe an expensive one.
Good luck - keep watching

Nice 4.5p rise with no news coming out. Maybe over the weekend some release will be made. Get ready for the T10's and the T20 trades coming in on the back of the anticipated exceptional results, which they will be - might not be into profit yet, but will make substantial inroads into that loss. Coupled with the investment program and the update on transportation followed by increased flow rates makes this share a potential 5/6 pound share by the new year in three months 2005/06.
I've been in this one since the early sibir days, not as long as some - but now all our patience IS being REWARDED - Good luck to everyone in this be advised though DYOR (The volume charts on this look positive - The buying of the share is positive - The fundamentals on this company from Oil rig - the product - the volume of recovered oil - to refinery - to transportation - to the service stations - to the price at the service stations that they own and operate - the Management - the relationship with the authorities - the investment in them bu Royal Dutch Shell - the rumour of the takeover by BP - The upward movement of the share - the buying in exceptional volumes by M, B, X and better still the O trades (us the private investor) show a positive, professional company which has only one way to go upwards with or without what rightfully belongs to Sibir.

In after consolidation at equiv. sp 20.3p,actually203,but now appears to be about to motor,think consoldn.was10/1,right on B1.

Interesting little High Court diversion today. I was always told "dont mess with the Senior Courts " --- perhaps it needs translating into Russian.
As long as it does not divert Cameron and his team from the principle task of extracting oil I am happy to hold my hand.

Sunray41.
That decision today was so predictable, as is the appeal result. Complete bogus and time wasting distraction. The appeal Court Judges will still thro out the Appeal - but what will happen - Hazzard a guess - Nothing. The fine will be paid but NO ONE will be identified. Why should they ID their backer. The fine will still be the same and it will be paid and the company is still what it is, in damn fine fettle. MM's can adjust the price to reflect this but they can't hold the price back too long 4:1 buys to sells - someone mopped up the sells easily. Indication strong buying opportunity lets the big boys in again and frightens the PI. They are not having mine, never. This share has an exceptional future.

Agree B1 but it would be nice to see this disgracefull event exposed.
You are right , they wont squeall on their backer

Salym current productions rates at 2750 BBls/D for August

Total Produced for the 1st 6 Months of Year 520 K BBls = $28.6 Million

Production forecast to be ramped up 7500 BBls/D by Year End.

This sp. is sliding, is this to go on and on,any views.

nOT SLIDING ANYMORE!!! Checking out Russian Newspapers for why!!

Nice movement today 9p up possibly with the T20's getting in - T10's in from Monday. All getting in before the results, which will be exceptional on the 30th inst. Will head North and possibly touch 4.00 maybe 4.50p. November flowrates will increase this share possibly to 5.00 maybe 5.50p. ANTONs have this share as a buy with a price of 4.66 (+/-) 2.6%. If the BVI hearing starts Tuesday and there is some settlement in SIBIRS favour you can add another 3.00 to 4.00 pounds. All looking good for 2005. 2006 looks even more favourably as all SIBIRS hard work swings into full gear. I wouldn't be surprised if as per usual that there will be a RNS next week a couple of days prior to the results updating shareholders as to the completion of the infrastructure namely that the pipeline is up and functioning. DYOR. Good luck.

Salym Petroleum Development NV (SPD) announced the last stage of setup works next comes large scale production on Upper- and Western Salym fields. Over the past six to twelve months, SPD set up the previously limping production at the Upper Salym field. The company also launched production at the Western Salym field, installed industrial infrastructure units and a pipeline linking the field to Transneft enter point.

remind, earlier SPD and Russia's ministry of natural resources (MPR) were at odds about project launching. The MPR even threatened to recall the licenses, accusing the company of dragging out the project terms. The point is that initially the project was to be developed on PSA terms. As many in Russia know, to ink a PSA project with Russia's government requires decades. Russia's parliament back in 1999 included Salym in the list of fields approved for PSA terms development at that point the sides did not manage to settle the terms of the agreement. However, the MPR lifted all demands in 2003 after SPD shareholders have decided to start production at Salym group of fields following the current tax legislation. In April 2005, Russia's Agency on subsoil usage inked with SPD a number of addendum agreements on license renewal for Upper Salym and Western-Salym fields till 2032 and 2034 respectively (the initial fields' development term was to run out on 7 September 2013).
Dale Rollins, SPD general director, informed journalists on Salym briefing that in 2005 the company plans to produce some 321,000 tpa crude (6,420 b/d). The first oil on Western-Salym field was discovered in December 2004 and already the company estimates 2005 production at the field 138,000t of crude, plus 183,000t estimated production at Upper-Salym field. At same time, in 2006 the company plans to boost crude production seven-fold, bringing the annual output to some 2mn t (40,000 b/d).
To the point, the shareholders failed to negotiate handling arrangements for the crude produced at Salym fields. According to Rollins, crude distribution schemes and sizes of consumer markets are now thoroughly discussed. It is plausible that Evikhon, one of SPD's shareholders, will want to supply its share of produced crude to one of Russia's refineries. Alternatively, it is possible that SPD will distribute the whole production volume. The shareholders will decide on crude distribution schemes by October this year. The SPD has already signed a crude shipments agreement with Transneft, Russias crude transportation pipeline monopoly. In August 2005 the SPD plans to complete a pipeline linking Western-Salym field with Southern Balyk, Transnefts pipeline entry point. The project's construction works have already been completed, now test-run is in the progress. The plan puts pipeline launch date for November 2005 at the same time, the company's management estimates it might launch the pipeline sooner. The cost of 180,000-200,000 b/d, 88km pipeline tops $53mn.
The investments into the fields are estimated to peak over the next two years period, when the company plans to install main production and infrastructure units. Over 2003 2004 some $350mn have been invested in Western- and Upper Salym fields. In early 2005, SPD shareholders approved $249.2mn investments in Vadelypskoe field. In 2005 the company plans to invest in those three fields a total of $310mn. 2006 investment budget has not been approved yet; at the same time, the info leaked that it could reach some $250-$300mn. The total cost of the projects at the three fields reaches $1.25bn. Rollins also said that the company's budget requires periodical adjustments due to growing cost of metal production, exchange rate fluctuation and other factors. However, SPD director stressed that the company plans to keep within the project's budget and will try to cut costs by optimizing the production processes.
Presently, the project's payback period is hard to estimate -- it depends on a number of factors, including cost of crude, tax mode etc. Still, SPD plans that by late 2006 the company would enter the stage of positive financial flow, investing a part of its own profits in the projects and paying money to the shareholders.
Rollins happily expanded on the company's production plans but was tight-lipped towards the questions on expansion outlook. The director reminded that the SPD was tailor-made for Salym project and currently the shareholders do not think about expansion. At the same time, after the project reaches production stage, the company's shareholders could turn to expansion options, in particular, acquiring new licenses.

Oilmarket info

Salym Petroleum Development NV is a 50-50 company established by Shell Salym Development NV and Evikhon, controlled by UK-registered Sibir Energy. The SPD holds production licenses for all three fields of Salym group, which is located in Khanty & Mansy Autonomy. The group comprises of Western-Salym, Upper-Salym and Vadelypskoe fields. Field resources of + category are estimeated at: 113.3mn t (Western Salym), 21.3mn t (Upper-Salym) and 18mn t (Vadelypskoe). The total crude production at the field is estimated at 120.000

Moscow, 12.09.05


Major success of Salym Petroleum Development in Yugra Black Gold Competition
On September 9, 2005 the Black Gold of Yugra Competition was concluded in Khanty Mansiysk. This competition is carried out on an annual basis among oil and gas companies of Khanty Mansiysk Autonomous Okrug and is timed to coincide with the national Oilmans Day festivities. 41 companies have participated in the competition this year.



Salym Petroleum Development NV (SPD) has for the first time taken part in the competition and scored a major success. Based on its performance in 2004, SPD has won in two categories: as The most dynamic enterprise with oil production volume of under 1 million tonnes and For social and economic partnership and also became a laureate in the category For efficient management of subsoil.



Our debut in the Yugra Black Gold Competition can be regarded as a major success, commented SPD CEO Dale Rollins. Winning in the competition is the result of great performance of the SPD team, including our staff and contractors in 2004, a proof of the Companys dynamic development and our commitment to social responsibility and partnership. This year we continue increasing the pace of field facilities construction, putting into operation new wells and ramping up oil production. Currently SPD has come to an important milestone of the Salym Project in the next two months we are to complete and commission the key infrastructure facilities in the West Salym field Central Processing Facility, infield flow lines and oil export pipeline. These will enable SPD to reach a new level of oil production both in quality and in quantity. At this challenging moment the news of winning in the Black Gold of Yugra Competition has become a great encouragement for SPD.



Note for Editors:

Salym Petroleum Development NV is a company established on a 50:50 basis by Shell Salym Development B.V. and OAO NK Evikhon (a subsidiary of Sibir Energy plc. SPD holds licenses for three Salym fields (West Salym, Upper Salym and Vadelyp) which are located in the Khanty-Mansiysk Autonomous Okrug in Western Siberia, 190 kilometres from the town of Nefteyugansk.

The cumulative oil production from the Salym group of fields will be at least 6 million tonnes per year by 2010. In terms of total investment US$ 1.25 billion - the Salym Project is one the largest investment projects with foreign capital in the Russian energy sector.


ENQUIRIES:

Salym Petroleum Development NV Elena Zakupneva,

External Affairs Manager

+7(095) 518 97 20 Mob +7(095) 762-91-15

Scots oil executive takes on Abramovich again over 'theft'

IAIN DEY
CITY EDITOR


AN ABERDONIAN oil executive will renew his 1bn legal fight against Chelsea tycoon Roman Abramovich this week in a long-awaited court case in the Caribbean.

Henry Cameron, chief executive of AIM-listed Sibir Energy, has accused Abramovich of "stealing" his company's share of a massive oil field in Siberia.


The field was held in a joint venture company created five years ago but Sibir's 50% stake was subsequently diluted to almost nothing through a series of transactions that Cameron claims to know nothing about.

But Abramovich and his Sibneft oil business claim that they acted lawfully at all stages and the stake dilution was part of a deal agreed with Sibir's biggest shareholder.

Although a string of cases has been batting back and forth in the Russian legal system for several months, the battle which begins in the British Virgin Islands on Monday is seen as the linchpin to the eventual outcome.

Some industry sources have claimed that the case is holding up a multi-billion merger between Sibneft and its Russian rival Gazprom. Sibir has claimed that the contested field could be worth as much as 40% of Sibneft's total value.

Sibir has raised the action in the British Virgin Islands as four of six companies involved in the dilution process were registered there.

Sibneft's report and accounts acknowledge that all these companies are its subsidiaries. The action cites Roman Abramovich, Sibneft and the six associated companies.

The latest row in the Russian courts has revolved around the appointment of an administrator to the two firms' joint venture.

Sibneft had been attempting to gain control of the creditors committee but the Moscow Arbitration Court threw this out.

A previous hearing on that point was delayed after the judge excused himself from hearing the case because his wife had started working for Sibneft two days earlier.

A case in the High Court last month saw Sibir come under fire from a mystery group of shareholders over allegations that it colluded with Sibneft in the stake dilution to the detriment of the rest of the shareholders.

That case was thrown out by Justice Peter Smith, who branded the claim from Harley Street Capital as "bogus".

It emerged that Harley Street only owned 200 shares in Sibir and bought them after the stake dilution took place.

Thanks BANKONE for all your input on this share - do you really think Sibir will be vindicated?

I see a number of combinations which will ultimately result in the return of the asset to SIBIR in one way or another which will benefit the ordinary joe public shareholder. Firstly the BVI hearing i believe we wont hear an awful lot about this scenario as it will be subject to legal privilidge, legal arguments and complex fraud cases which this is, have no doubt about that may and possibly will go on for a number of years unless the bid for Sibneft by the parties involved include a pay off + asset return to SIBIR out of court in order to get the deal done. If it is Russias Privatisation plan to buy the asset Gazprom and return it to the public following its purchase (similar to the BT sale and the ilk), the SIBIR issue at some stage has to be settled. BP may step in and buy the company - Gazprom may buy the company - SIBIR may go it totally alone. However I believe that following the figures and the Flow rate announcement in November together with the Pipeline connection that SIBIR will be gobbled up. HC after all is keeping the P govt sweet. Moscow press at the moment are having a field day showing the bad character of Mr A so P wont want Mr A in his or any where near his camp in order to keep the public confidence on his side. I also believe this week will be the last chance to get in under 3.50 and come 29.9 get in under 4.00 because this share has some legs left in it and boy doesn't it look well fit. DYOR Good luck Come 8am in the morning I am having 6000 more of these.

A lot of readers but no writers - where has all the confidence gone my 6000 went through at 8.12 this morning unaware of the RNS whilst travelling to work. Excellent RNS brought about a number of B buys throughout the day but sells outweighed the buys 2:1. Result due on BVI hearing to day sometime will be interesting what it brings either PI's will be running for the exits or big buys will come in but nevertheless interesting reports yeaterday in the Guardian re Mr A rags to riches story and in the business telegraph stating that SBEs results will post strong interims when announced on 30th Sept 2005'

Bankone - these results I believe will be exceptional and maybe that news has already been included in the present day price considering the nighon one pound rise in the past 4 weeks or so.

David Conn Sports reporter of the year
Wednesday September 21, 2005
The Guardian


Roman Abramovich is in court today in Tortola, the British Virgin Islands, a defendant on a writ alongside his oil company, Sibneft, and six other companies based in the BVI, Panama and Cyprus, which Abramovich is alleged to control. In the scale of the cataclysms he has sailed through on his journey from impoverished orphan in communist Russia to owner of a vast pool of the country's privatised oil fields - and Chelsea FC - this is a trifling matter, a claim against Abramovich and his companies by another oil company, Sibir, for a half-share worth up to $2bn in a joint venture to serve Moscow with oil.

Sibir and Sibneft formed the company, Sibneft-Yugra, in November 2000, owning it 50-50 and work began on extracting oil. But then, on September 28, 2002, Sibir claim that Sibneft executives, illegally and without Sibir's knowledge, increased the number of shares in the joint venture tenfold. The new shares were transferred to three offshore companies, Tranquillo Trading, whose address is the second floor of an office block in Panama City, Shaw Investment & Finance and Carroll Trading, both registered in the BVI. As a result, Sibir's holding in their own joint venture was diluted from 50% to just 5%.
Five months later, on February 4, 2003, Sibir claim that even this minor holding was further diluted. They say that this time the number of Sibneft-Yugra shares was increased more than fivefold reducing Sibir's holding to below 1%. The offshore companies holding the new shares then sold their stakes to three new entities, Ferenco Investment & Services, registered in Limassol, Cyprus, Richard Enterprises and Gregory Trading, both of the BVI. Sibir, which is registered in Britain and whose chief executive, Henry Cameron, is a Scot, claim they were given no notice that the meetings were being held or that new shares were about to be issued.

"We believe this was a fraud on us to deliberately deprive us of half our company," Cameron told me this week. "It would have cost around $16,000 (8,870) to buy the shares to maintain a stake in a very important oil joint venture worth up to $2bn. It is ridiculous to believe we simply chose not to take up our rights."

Sibir began court proceedings in the Eastern Caribbean Supreme Court, BVI, in July this year, naming all six offshore companies and Sibneft and Abramovich personally as defendants, claiming they should pay Sibir the value of a half-share in Sibneft-Yugra.

Abramovich, with partners, owns 72% of Sibneft, one of Russia's largest companies, which he bought in 1995 for a song in the loans-for-shares scandal through which vast, state-owned assets were sold desperately cheaply to a handful of men who then became billionaires overnight - the oligarchs. Abramovich is not a director of Sibneft; however, Cameron told me they decided to sue Abramovich personally because they dealt with him from the beginning.

"The negotiations to do the joint venture originated with Mr Abramovich and we therefore claim that the conspiracy to defraud us of our share could not have happened without his knowledge."

John Mann, the spokesman for Sibneft and for Abramovich personally, told me that they deny all the claims and are defending the action fully. Sibir have had limited success with similar claims in Russia.

"We say that everything at Sibneft-Yugra was done legally and with integrity," Mann said. "We have acted entirely legitimately in the conduct of the joint venture. We reject all the allegations and we fully expect to win in court again."

Cameron told me the claim was brought in the BVI - which, despite its status as a tax haven, effectively operates English law - because four of the offshore companies are registered there. The current proceedings, which opened yesterday and will conclude tomorrow, will hear Sibneft's argument that the case should be thrown out because, they claim, the BVI has no jurisdiction to try the case. Sibir, however, won a previous hearing, which led to the newly issued shares, owned by the offshore companies, being frozen pending the outcome of the case.

Cameron has talked so publicly about the case because, he told me, he is "affronted" by the degree of corporate malpractice he claims has taken place: "I work in Russia so I am used to difficulties but I had a feeling of almost disbelief at the way this was done. I think it is very important for people in the West to understand it."

Since he bought Chelsea in August 2003, Abramovich has floated into British life largely free of criticism, or even much knowledge, about who he is and where he has come from. When his money bought Chelsea the Premiership last year, he was dragged smiling on to the Stamford Bridge pitch, showered in champagne, his team dancing delightedly around him, a mysterious fairy godfather, showering football with beneficence. Precious few voices have been sounded in caution, none prominent in football or at Chelsea, except the former sports minister, Tony Banks, who said he wanted to be sure Chelsea's new owner was "fit and proper". One or two have called for investigations into the source of Abramovich's cash but in truth there is no great mystery about it.

The loans-for-shares privatisations, what became known on the Moscow streets as "grab-it-isations", were public and have been extremely well documented. With Boris Yeltsin's Russia unravelling economically and politically in 1995, amid fears that the communists could return in the next election, seven men who had made initial fortunes in the free-for-all which followed communism's collapse offered to loan the government just 1.12bn in exchange for the right to manage 44 state-owned conglomerates, including the world's largest nickel company. Later they were allowed to buy the companies at a fraction of their true worth in closed auctions; Abramovich, with his then partner Boris Berezovsky, bought the Sibneft oil riches for just over $100m.

Russia, which had banned private wealth under communism, became one of the world's most divided countries, with a few men owning natural resources whose true worth is billions, while 20% of the population, some 50 million people, live below the poverty line of just $30 a month. Here Abramovich is celebrated but in Russia the oligarchs are widely loathed: "The vast majority of Russians believe the oligarchs stole those assets," explains Nikonov Alekseevitch, who runs the Polity Foundation think tank in Moscow. "There is huge resentment of them and the terribly unequal society we now have as a result."

While the football authorities here argue none of this is their business, they have done nothing to protect the sport itself. Abramovich said he looked at the major Spanish clubs, Real Madrid and Barcelona, before he bought Chelsea, but he could not buy them because they are democratic institutions, owned by their members. All our clubs are companies and as such up for sale.

The Premier League has no qualms about allowing businessmen to purchase its clubs, then throw in millions to buy success. The icy-eyed capitalists of American football's NFL know better; to them "competitive balance" is vital to the sport's success and money is shared strictly round the franchises. Here Abramovich can pour in whatever he wants to transform Chelsea from a debt-laden Ken Bates company to one with a locker-room of the world's best players.

"I know that the average person doesn't care very much about a dispute between two oil companies," Cameron told me. "But I think they do care about the way people conduct themselves in business."




Small mention in the business.telegraph............

Sibir Energy eased 7 to 332p on profit-taking. Dealers recently speculated the oil production group will post strong interim results on September 30.

Sibir Energy plc has completed the acquisition of Hitchens Global SA, bringing to 100% its ownership of Russian subsidiary, OAO NK Evikhon. Evikhon is the formal partner with Shell in a 50/50 joint venture to develop the Salym group of oil fields in Western Siberia where the start of commercial production is weeks away.

The Hitchens acquisition is part of a larger corporate restructuring approved by shareholders at Sibirs EGM on December 20, 2004 and brings into the company three assets: 8% of Evikhon, benefit of a $9.9 million debt payable by Evikhon (eliminated on consolidation), and a 12.5% interest in Mosnefteproduct, a downstream fuels retailing and distribution network in the Moscow region. In parallel Sibir is finalizing the acquisition of a 25% + 1 share interest in STBP directly from its beneficial owner, Mr. Chalva Tchigirinsky, as provided for by the shareholder approved restructuring. STBP is a joint venture which owns and operates a network of 45 BP branded filling stations in the City of Moscow.

Salym Update
Sibir also announced that commercial production at the Salym fields will begin in late November as drilling and large infrastructure projects continue to make significant progress. The Salym development is operated by Salym Petroleum Development (SPD), the joint venture between Shell and Sibirs Evikhon.

Four drilling rigs currently working in West and Upper Salym have drilled over 44 wells with 30 completed to date. Well results are showing reservoir development in line with expectations, some with net pay in excess of initial projections. Overall drilling times have been reduced to less than 15 days, adding momentum to a program that is scheduled to drill at least 67 wells and have 33 or more hooked-up and producing by year-end 2005.

Construction of the Central Processing Facility (CPF) and Crude Transfer Facility (CTF) is on schedule with completion imminent. Welding on the 88km export pipeline has been completed and hydro-tested. The finalization of these key infrastructure projects will allow SPD to begin pumping crude oil directly from the Salym fields into the Transneft system in November, 2005.

Of these developments, Sibir CEO, Henry Cameron said, By securing Sibirs full 100% ownership of Evikhon we ensure that Sibir shareholders will receive full benefit of our joint venture with Shell. Early well results are very encouraging and give us confidence that the Salym development will realize its rich potential. We also very pleased to see the project reaching commercial production on schedule. It is a tribute to excellent work the SPD team has done in fusing the best of international oil field practice and local Russian expertise.

H ave faith B1, also topped-up today before rns and during house removal.
I am old enough to recall the Ferranti fraud where a guy called Guerin from US. walked away with the kitty. If memory serves me he was given custodial in a Federal jail.---------------- The asset was never recovered
Henry Cameron is really going for this one, so an interesting time will be had by all.
Thanks for your regular info and views

Another buying day today nearly 2:1 1/2 million shares traded. Good article in the Daily Mail re the Gazprom and Sibneft Saga. The author suggests that Mr A 'may' have to get the thorn 'HC and SBE' out of his side before the deal can go through. Also states that HC and SIBIR have spent 1bn pounds on legal fees to win this one. I have faith but I hate to see an excellent company being held down by attempting to get back what is rightfully owned when really the company SBE is worth more than what it is today with or without the asset. The MMs know it B and T trades and when the interims are released (subject to a bit of profit taking) Northwards she will go. No news yet re BVI - frantically searching Moscow press and other dailys but I suppose if as it is believed it is 'in camra' and legal proceedings are still ongoing then the subjudisary rule applies. Good luck Sunray41 and the rest of the posters.

From Anton.

Sibir Energy. Consolidates stake in Evikhon; Salym production to begin in November

Separately, Sibir said commercial production at its Salym field (305mn bbls of 1P reserves) is just weeks away, with 30 of the planned 33 wells completed to date. The project is a JV between Evikhon and Shell, and preliminary flow indications are at or above expectations.

The news shows Sibir is continuing to position itself as a well-integrated company, both upstream and downstream. We reiterate our Buy recommendation.Friday,

(Article found on another BB)

September 23, 2005. Issue 3259. Page 1.

Fortunes Go to Kremlin Favorites

By Catherine Belton
Staff Writer
With Gazprom's securement of a record $12 billion loan now appearing to be a mere formality, the gas giant looks set to buy out Roman Abramovich's stake in Sibneft -- the biggest state buyout in post-Soviet history.

The deal would apparently let Abramovich walk out of Sibneft with nearly $9 billion in profit on an acquisition he made in the controversial loans-for-shares auctions of the mid-1990s.

Gazprom's buyout of his stake would also mark a stark delineation between Abramovich and his erstwhile partner Mikhail Khodorkovsky, whose conviction on fraud and tax evasion was upheld by an appeals court on Thursday.

Sources familiar with the negotiations between Gazprom and a syndicate of Western banks said that the loan was "imminent" and would be signed once remaining formalities were settled.

Earlier this week, Gazprom deputy CEO Dmitry Medvedev said that the gas giant could complete the acquisition of Sibneft by the end of the year.

The deal would put almost $9 billion in cash into the pocket of Abramovich, who along with his one-time partner Boris Berezovsky forked out a little more than $100 million for the oil firm in 1995-96.

It is difficult not to compare Abramovich's fortunes to those of Khodorkovsky, who now faces an eight-year prison sentence after a highly politicized trial and whose Yukos oil empire has been crushed under a $28 billion back tax claim. The legal onslaught was widely seen as retribution for the threat that Khodorkovsky posed to Kremlin power.

Even though the Audit Chamber has found that Sibneft underpaid its taxes by 10 billion rubles ($360 million) in 2001 and 2002, no legal action has been taken against the firm. Sibneft has denied any wrongdoing.

Meanwhile, Sibneft's effective tax rate in 2001 was just 9 percent, below Yukos' 13 percent in 2002 and much lower than the statutory rate of 24 percent.

Furthermore, lingering questions over Sibneft's murky ownership have raised speculation that Abramovich has the backing of the Kremlin.

In the summer, President Vladimir Putin publicly said that he was aware of talks between Sibneft and Gazprom -- and that the state should treat it as any other deal.

Berezovsky, who has fallen out of favor with the Kremlin and is living in exile in London, said in a telephone interview Thursday that he had evidence that Putin was seeking personal gain in allowing the Sibneft sale to go through unhindered.

In July, Berezovsky said he was preparing to sue Abramovich in a London court on charges of forcing him out of his stakes in Sibneft and other major assets at a knockdown price after relationship with Putin's Kremlin soured in 2000.

"I have been saying for a long time that Putin is a business partner of Abramovich," he said. "I have no doubt that the profits from the sale of Sibneft will be shared between Abramovich and Putin, as well as among several other individuals."

The difference in treatment between Khodorkovsky and Abramovich underlines Putin's interest, he said.

"It's now clear they just took away Yukos because it was not owned by any of their gang. Proof of this is exactly what's happening with Sibneft now. Putin has said he personally supports the deal."

Kremlin spokesman Dmitry Peskov declined to comment on Berezovsky's remarks. "A person who is under an international arrest warrant cannot accuse anyone of anything," he said. "It would not be correct to make any comment on his remarks."

Russian prosecutors have charged Berezovsky with widespread fraud.

Berezovsky claimed he had seen direct evidence of Putin's collusion with Abramovich in Sibneft when Abramovich forced him to sell the 50 percent stake in Sibneft he jointly owned with partner Badri Patarkatsishvili for $1.3 billion in 2000.

Abramovich said he was speaking in Putin's name when he told him he had better sell or watch the stake be taken from him anyway, Berezovsky said.

"This was done for the benefit of Putin. I can't rule out that during the investigation in England and during the court proceedings, Putin will be called to the court to give evidence."

Berezovsky also claimed he had documentary evidence of Putin's interest in Sibneft, but declined to elaborate on what his records might reveal, saying he did not want to give his enemies time to prepare for his legal attack.

Berezovsky said his suit would likely be filed in October, rather than the September date he had given earlier.

Sibneft spokesman John Mann denied that Abramovich had any special ties to Putin.

"It is clear to anyone that the relationship between Abramovich and Putin is the same the president has with any regional governor in the country," he said. Abramovich is governor of the Chukotka region in the Far East.

Mann declined to disclose the exact shareholder breakdown of Sibneft, saying only that 72 percent of Sibneft was managed by the Millhouse holding company on behalf of core shareholders, who "include Abramovich and a group of current and former Sibneft managers."

Mann declined to say whether the core shareholder group included any other individuals.

Sibneft's ownership structure has often posed a conundrum for financiers and even bankers extending loans to the firm.

"Documents on the ownership of Millhouse are pretty meaningless. If you look at them, you pretty soon run into a dead end," said one banker, speaking on condition of anonymity.

The banker added that a rigorous look at the company's ownership had not been a requirement in previous loan deals secured by oil exports.

Other market observers have suggested that Abramovich may at the least have to share some of his winnings with other state officials.

"One oligarch has said to me he doesn't think for a minute that Abramovich will keep all that cash. He owes a lot of people a lot of money, and a lot of it will make its way back to the Family," said a source close to a natural resources tycoon, referring to the clique of businessmen and powerbrokers who surrounded former President Boris Yeltsin.

Analysts said any lawsuit launched by Berezovsky was unlikely to affect Gazprom's title to the oil firm. Yet, another legal battle could give the gas giant and its big Western lenders some reason to pause.

Sibneft's former partner, Sibir Energy, is suing the oil company in Russia and the British Virgin Islands, alleging that it was pushed out of a joint venture to develop the Sibneft-Yugra field.

Hearings as to whether the British Virgin Islands court had jurisdiction over the case began Thursday, a spokesman for Sibir Energy said.

The spokesman said he could not comment further because the hearings were closed. If jurisdiction is granted, proceedings could take months, he said.

"The outcome of this could impact the value of Sibneft," said Chris Weafer, chief strategist at Alfa Bank.

Sibneft-Yugra produces some 8 percent of Sibneft's total oil output, according to Valery Nesterov, an oil and gas analyst at Troika Dialog, who said that the field could be excluded from the deal.

Gazprom has been so open and active in seeking to buy out Sibneft that the gas giant would suffer a serious blow should rivals Rosneft or Surgutneftegaz snap it up at the last moment.

"This has become a question of image after Gazprom's lack of success in merging with Rosneft," Nesterov said, referring to the failed merger between the two energy giants earlier this year.

"It would not be good for them to get into the same situation again. It's become a question of reputation and of how much you can trust the company's management."

"You still can't say it's a cinch," Weafer said. "As we saw in Rosneft, anything is possible right up to the point where the ink is still drying on the page."

NOTICE THAT THE COURT CASE COMMENCED THURSDAY NOT TUESDAY as reported in this article.
What is interesting in this article it suggests that the case in the BVI is to whether or not the BVI courts have jurisdiction - If that all it is about then no result as to the return of the asset will be forthcoming this millenium. Doesn't matter as I have said many times the company is strong enough without it.

September 23, 2005

Times Online

Abramovich faces court questions
By Steven Downes, Times Online Business Editor

Roman Abramovich, the Russian billionaire oligarch who owns Chelsea Football Club, could be forgiven for beginning to feel that someone is out to get him. Things may have seemed bad enough after one British tabloid today offered 10,000 to the first Premiership footballer to manage to score against his team. But the performance on the pitch of his English league champions has been among the least of Mr Abramovich's worries, as he has spent part of the week in a courtroom in the British Virgin Islands, accused of fraud over ownership of a half-share in a $4 billion Russian oil field.
At the heart of the ownership dispute is a joint venture between the AIM-listed Sibir Energy and Sibneft, the oil firm controlled by Mr Abramovich and reckoned to be worth up to $14 billion, which this week has been the subject of takeover talk involving Gazprom, the state-owned Russian gas producer.
Sibir accuses Sibneft of misappropriating assets worth up to $2 billion by unlawfully increasing its stake in the joint venture, Sibneft Yugra, through affiliate companies and reducing Sibir's stake from 50 per cent to less than 1 per cent.
The companies set up Sibneft Yugra in 2000 in order to develop the west Siberian oil field of South Priobskoye. But Sibir claims that in late 2002, Sibneft executives, without Sibir's knowledge, increased the number of shares in the joint venture by a multiple of ten. The new shares were transferred to three offshore companies, one registered in Panama City, and two others registered in the BVI. As a result, Sibir's holding was diluted to just 5 per cent.
Sibir further claims that five months later, in February 2003, even this residual holding was diluted further: by multiplying the new shares by five, Sibir's holding of the company of which they were once equal partners was reduced to less than 1 per cent. The offshore companies holding the new shares then sold these to three other companies, registered in Cyprus and BVI.
The chief executive of Sibir, Henry Cameron, told one newspaper this week that his company had been given no notice that the meetings were being held or that new shares were about to be issued. "We believe this was a fraud on us to deliberately deprive us of half our company," he said.

It would have cost around $16,000 to buy the shares to maintain a stake in a very important oil joint venture worth up to $2bn. It is ridiculous to believe we simply chose not to take up our rights

Henry Cameron, CEO of Sibir Energy

"It would have cost around $16,000 to buy the shares to maintain a stake in a very important oil joint venture worth up to $2 billion. It is ridiculous to believe we simply chose not to take up our rights."

Two months ago, the court in Tortola ordered a freeze on trading in a 49 per cent stake in the Anglo-Russian oil firm pending further hearings. The court case was brought by Sibir in the Caribbean because of the registrations of four of the six companies subject to their complaint.

After failing in its legal claims in Russia, Sibir has pursued Sibneft to the British Virgin Islands, which operates under the English legal system, and which could, if it finds against Mr Abramovich, enforce its decision in the UK, where Mr Abramovich owns homes in Lowndes Square, Belgravia, and Petersfield, Hampshire, as well as the Stamford Bridge football ground, and a business, Millhouse Capital, which appears to control many of the oligarch's business interests.

Four of the companies listed in the BVI court order are Gregory Trading, Richard Enterprises, Shaw Invest & Finance, and Carroll Trading. All are said to be located at the same address - Trident Chambers, Wickhams Cay, Road Town in Tortola. The court order appointed an independent receiver to take over the shares of three of the BVI companies that are part of the fraud claim. The other companies, including entities registered in Cyprus and Panama, as well as Mr Abramovich himself, were ordered not to make any move to shift the shares outside the BVI courts jurisdiction, or the control of the companies that presently hold them.

John Mann, Mr Abramovichs spokesman, was reported to dismiss the legal claims, saying "any attempt to drag Mr Abramovich into litigation would be misguided, since he is not on Sibnefts board and had no role in its dealings with Sibir", and thus only adding further mystery to the structure and governance of the companies apparently owned by the Russian.

What is not in dispute is that Sibir and Sibneft were equal 50 per cent stakeholders in Sibneft Yugra, where Sibneft was to fund the development and Sibir and its Russian operating company, Yugraneft, were to repay Sibneft, and then share the proceeds of oil sales equally. However, according to Sibir, Mr Abramovich, his associate David Davidovich, and their subordinates secretly converted Sibirs and Yugranefts stakes into holdings of the BVI companies and others.

Mr Mann has said that "everything that Sibir has done related to Sibneft Yugra has been within the framework of a set of agreements between our shareholders and their shareholders". Mr Cameron was reported in a Moscow newspaper in July as saying this is "all nonsense. We would like them to disclose to us what those agreements are".

In order to rule on Mr Abramovichs defence, Judge Indra Charles has ordered the Abramovich companies to produce the agreements in court. The court order also instructed the companies to reveal "when, from whom and for what consideration it acquired the interest in the share capital of Sibneft-Yugra presently registered in its name". In addition, the companies were also ordered to hand over their banking details.

Although Sibneft makes its financial accounts public, the others do not. It is this element which has required Mr Abramovich's attendance in court this week.

Crucially, if forced to comply with the court, the elaborate system through which Mr Abramovich directs billions of dollars of oil revenues will be exposed for the first time.

"We have not acted in any way illegally," Mr Mann said. "All the court cases so far have confirmed that."

The British Virgin Islands case could be a blow for Gazprom, which even has the backing of President Vladimir Putin to take a potentially controlling stake in Sibneft, Russia's fifth largest oil producer.

Roman Abramovich has made his millions and he just doesn't want to keep having to turn up for shareholder meetings

Kremline watcher

Yesterday, Gazprom received formal confirmation of approval from a consortium of western banks of a $12 billion loan - the largest in Russian history - which is believed to be intended towards payment for a controlling 72 per cent stake in Sibneft. Gazprom is believed to have offered $7 billion, while its owners maintain it could be worth twice that amount, with its shares this week trading at $3.55.

Yet the BVI high court may have an impact there. "This court case could impede the potential sale of a controlling stake in Sibneft to Gazprom," the research department of Russia's Alfa Bank said in a written note yesterday.

It would not be the first time that Mr Abramovich has been foiled in what appears to be his own, personal, multibillion-dollar exit strategy from Russia, where his former fellow oil oligarch, Mikhail Khodorkovsky, once the country's richest man, is now consigned to a Moscow jail, stripped of all his former assets.

Mr Abramovich had at one stage been trying to sell Sibneft to Khodorovsky's Yukos oil firm, a deal which collapsed with its owner's arrest on tax evasion charges in 2003. Earlier overtures to western oil concerns Total, Exxon and Chevron by Mr Abramovich also failed to materialise.

Any Gazprom deal would give the Kremlin effective control over about one-third of Russia's oil, confirming long-held suspicions that Russia is keen to renationalise previously state-owned enterprises.

But some analysts disagree. "This whole thing about Russia renationalising has been overblown," said one, a confirmed member of the group that believes Mr Abramovich is looking to liquidate his Russian assets.

"Roman Abramovich has made his millions and he just doesn't want to keep having to turn up for shareholder meetings."

Old news but relevant. Found whilst searching for update re BVI hearing as above
again from Times online. What is interesting in this article is the list of compalinants? including Sibir. Listed as bold and underlined

July 18, 2005

Court freezes Abramovich joint venture
By Times Online



A British Virgin Islands court has frozen trading in a 49 per cent stake in a British-Russian oil firm being fought over by Roman Abramovichs Sibneft and rival firm Sibir Energy.



The court ordered the freezing of the stake in the joint venture, Sibneft Yugra, pending a further court hearing to take place by July 27.

Sibir Energy has accused Sibneft, which is controlled by Mr Abramovich, who also owns Chelsea football club, of misappropriating assets worth up to $2 billion by unlawfully increasing its stake in Sibneft Yugra by selling shares to affiliate companies.

Sibir Energy claims its stake in the company was reduced from 50 per cent to less than 1 per cent between 2002 and 2003. The companies set up Sibneft Yugra in 2000 in order to develop the vast Siberian oil fields of South Priobskoye.

"We have started proceedings in the British Virgin Islands because British Virgin Islands companies have been used as vehicles," Sibir Energys chief executive, Henry Cameron, said.

The British Virgin Islands court ordered Sibneft and Mr Abramovich to maintain assets of at least $1 billion dollars until the freeze had been carried out by a receiver.

Sibir shareholders, led by Russian billionaire and 51 per cent owner Chalva Tchigirinski, have been fighting to regain the property they claim is still theirs, and have secured the backing of the court to have the case heard. Sibneft insists it acquired the stake by entirely legitimate means.

Mr Tchigirinski told The Sunday Times: "This is war. And it is one that Abramovich declared on me. We have evidence of wrongdoing. We need to repossess our property.

"Russia needs to build normal transparency and gain investor confidence. Im taking on this fight not just for my sake but for Russias too."

Sibir has emphasised that it, not just Mr Tchigirinski, is making the allegations and fighting Mr Abramovich.

The court order was secured on behalf of City institutions including M&G, the investment arm of Prudential, and RAB Capital, the AIM-quoted hedge-fund manager.

The British Virgin Islands case could also be a blow for Russias Gazprom, which had planned to buy a stake in Sibneft, the countrys fifth largest oil producer.

"This court case could impede the potential sale of a controlling stake in Sibneft to Gazprom," the research department of Russias Alfa Bank said.

"We wont comment on the specifics of ongoing litigation. We will address this issue in the courts," John Mann, Sibneft's spokesman, told AFP, adding that Sibir Energy had lost three court cases against Sibneft in Russia in the past two weeks.

The dispute is likely to throw light Mr Abramovichs business career. The billionaire will be asked to deliver to the court a full list of his assets, making public for the first time the extent and details of his wealth both in Britain and Russia.

From the Independent on Sunday

Oil-row businessman aims to score against Chelsea owner
By Greg Harkin
Published: 25 September 2005
Chelsea may be sitting pretty at the top of the Premiership with a record-breaking 100 per cent record, but the Champions of England could face their greatest challenge yet: from an angry Scottish businessman.

Henry Cameron, a 65-year-old former solicitor, could knock Chelsea off their perch if he succeeds in a legal action seeking 500m from a business associated with the club's super-rich owner, Roman Abramovich. He claims that the Russian was involved in share deals that cost him a 50 per cent stake in a 1bn Siberian oil fields venture.

Instead of making his fortune, he says, he ended up with 1 per cent of the business, after directors of the Russian firm Sibneft issued thousands of new shares in the business to their own subsidiary companies.

The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneftto jointly develop oil fields in Siberia.

Mr Abramovich is named in a lawsuit launched by Mr Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

Mr Abramovich's spokes-man, John Mann, insisted his boss had acted legitimately.

Chelsea may be sitting pretty at the top of the Premiership with a record-breaking 100 per cent record, but the Champions of England could face their greatest challenge yet: from an angry Scottish businessman.

Henry Cameron, a 65-year-old former solicitor, could knock Chelsea off their perch if he succeeds in a legal action seeking 500m from a business associated with the club's super-rich owner, Roman Abramovich. He claims that the Russian was involved in share deals that cost him a 50 per cent stake in a 1bn Siberian oil fields venture.

Instead of making his fortune, he says, he ended up with 1 per cent of the business, after directors of the Russian firm Sibneft issued thousands of new shares in the business to their own subsidiary companies.
The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneftto jointly develop oil fields in Siberia.

Mr Abramovich is named in a lawsuit launched by Mr Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

Mr Abramovich's spokes-man, John Mann, insisted his boss had acted legitimately.

Another Sunday Article

From Scotland on Sunday on line

Former Aberdeen solicitor to sue Abramovich for oil 'fraud'

NICHOLAS CHRISTIAN


SUPER-RICH Chelsea FC owner Roman Abramovich is to fight a legal claim from a former Aberdeen solicitor over a half share in a 1bn Siberian oil fields venture.

Henry Cameron, now the boss of an oil firm headquartered in the Caribbean, accuses Abramovich of involvement in share deals which cost Cameron his 50% stake in the deal.


The Aberdonian claims directors of the Russian's firm, Sibneft, issued thousands of new shares in the business to their own subsidiary companies.

Cameron, 65, alleges that the new issues reduced his firm's stake in the project from half to just 1%.

The Scot is a director of Russian-owned Sibir, which struck a deal with Sibneft five years ago to jointly develop two huge oil fields in Siberia.

Abramovich is named in a lawsuit launched by Cameron's company in the British Virgin Islands, where the case is being heard because a number of co-accused firms are registered there.

The oligarch and three companies controlled by Sibneft are named in the legal action at the Eastern Caribbean Supreme Court, where judges are expected to give their verdict soon.

Abramovich's spokesman, John Mann, said his boss had acted legitimately.

Speaking from Johannesburg, Mann said: "Everything with regards to our participation in the Sibneft transfer was legal and above board. We are happy to settle this matter through the courts rather than through the press.

"It was a 50-50 joint venture initially; however, through a series of events we came to control an additional 49% of it.

"It was all completely legal, we funded every dime of the project, we brought in all the technology.

"This case has failed at several courts in Russia, now it is being heard in the British Virgin Islands and we expect to prevail again."

Russian oil has made Abramovich one of the world's richest men. He has an estimated personal fortune of 7.5bn and has poured more than 700m into Chelsea FC.

The Russian is not a director of Sibneft but is part of a group of core shareholders who own 72% of the oil giant.

Cameron moved into the Russian oil business after working as a senior partner at Peterkins Solicitors in Aberdeen.

He was unavailable for comment yesterday but said last week: "We believe this was a fraud on us to deliberately deprive us of half our company.

"I work in Russia so I am used to the difficulties. But I had a feeling of almost disbelief at the way this was done."

Abramovich lost both parents before he was four years old and was adopted by his uncle. He dropped out of college in Moscow in the 1980s before making his first fortune through oil deals in the early 1990s, as many Russians took advantage of the artificially high value of the rouble and the hasty privatisations which followed the collapse of communism. The main source of this wealth comes from being one of the major shareholders in Sibneft, one of the biggest companies in the world's largest country.

Abramovich also had significant interests in Russia's aluminium industry and until recently owned a sizeable stake in Russian airline Aeroflot, the sale of which may have funded the Chelsea buyout.

Although many others who made it rich in 1990s Russia have since fallen foul of the Russian authorities - including some who have been forced into exile in the west, or been tried under allegations of tax irregularities - Abramovich has managed to survive unscathed, buying up stakes in the main Russian TV channel ORT and surviving investigations into allegations of shady dealings.

The tycoon has also dabbled in politics. In 1999, he was elected to the lower house of the Russian parliament, the State Duma.

He is also the governor of the remote province of Chukotka in the north-east of Russia, directly across the Bering Strait from Alaska.


From B1 All we need now is a home win (Judgement re Fraud after all I can't see Mr A disclosing his connections with the Russian Hierarchy so they may fold)or a scoring draw (BVI Courts verdict maybe that they will have jurisdiction and be able to hear the full case then it will be who can tell the best jokes without laughing and I don't think that the comedian in the pack is HC - he means business). Tomorrow and Tuesday is going to be an interesting couple of days culminating in the best day of all Friday - Strong interims.

(I'm going to risk a further 10000 on a T10 to top up 1st thing Mon)

Good luck to everyone. DMOR and going4it.

Looks like an out of Court settlement to me .
Too many people going to be compromised.

Duff Gen from another BB - sorry. I removed the Post as it was wrong. However why have there been a 4:1 sale:buy ratio today knowing that strong interims are about to be released along with other good news. Anyone who is selling now must be in the know re BVI or strapped for cash.

Comeon fellow posters anyone still interested. Found this whilst surfing other BB's Strong buys late afternoon pulled back the deficit to a half penny drop. This WARNING from HC is a pep up ahead of the results due Friday. I think for the Gazprom/Sibneft deal to go ahead one of two things may occur.
1) Mr A and his coniving Cronies capitulate and give SIBIR adequate compensation for the theft of their asset
2) Gazprom pay over 1,200,000,000 pounds or so for SIBIR and be done with it, Gazprom can then sort the problem out 'Inhouse'

I favour no 2 as it keeps Mr P and the K out of it, no embarrasment, it virtually doubles the SP of SIBIR keeping the PI and Inst happy.

Anyone out there favour any other possibility. Figures will be due out in Russian time friday probably around Midday give or take an hour or so and I can feel 4.50 pound a share coming on quite easily. Anybody out there that can read the graphs etc and if so what do they say ( or is it just like reading T leaves). 62 hours to figures. Virtually all OIL companies reporting have shown strong top lines this year so far.

Good luck to all.

NEWS
27/09/2005

Sibir Puts Western Banks on Notice in Sibneft-Yugra Affair


Sibir CEO, Henry Cameron, has written letters to the General Legal Counsels of several prominent western banks believed to be financing Gazproms bid to acquire Sibneft to put them on notice that Sibir will pursue its claims against Sibneft regardless of any change of ownership of that company. Mr. Cameron further warns the banks of undertakings that Sibneft has made to the court in the British Virgin Islands. The text of the letter is published below.


Dear Sirs

Dilution of Sibir Energy Plc's ("Sibir") interest in Sibneft-Yugra

I write in my capacity as CEO of Sibir. I understand from recent media coverage that Gazprom may be close to agreeing a deal to purchase Sibneft and that your bank may be involved in providing finance for the deal. Whilst I am only too aware that such rumours may be without substance or may come to nothing, it is important that you are aware that Sibir has brought proceedings against, among others, Sibneft in the British Virgin Islands in respect of assets valued at between $1.2 billion and $2.1 billion.

Sibir's claim against Sibneft arises out of a joint venture agreement entered into in November 2000 in relation to the development and exploration of oil fields, namely the Palyanovskoye and the south part of the Priobskoye Fields (the "Fields"). The development of the Fields was to take place through a joint venture vehicle called Sibneft Yugra. Sibir held its beneficial interest in Sibneft Yugra through its subsidiary, Yugraneft.

On 28 September 2002 and 4 February 2003, the Board and members of Sibneft Yugra apparently resolved to increase the issued share capital of Sibneft Yugra. Additional shares were allotted to offshore companies, believed to be beneficially owned by Sibneft, and to Sibneft, but not to Yugraneft. The cumulative effect was to dilute Sibir's beneficial interest in Sibneft Yugra from 50 per cent. to less than one per cent.

Sibir commenced proceedings in the BVI on 13 July 2005. Sibir's claim is that the above actions were a crude fraud perpetrated by Sibneft on Sibir, by which Sibneft gained a very substantial benefit. Sibir's claim is that, in committing the fraud, Sibneft breached fiduciary obligations which it owed to Sibir pursuant to the joint venture agreement. Evidence has been filed by each side and a hearing has been fixed for 19 September 2005 with an estimate of three days at which the issue of BVI Court jurisdiction will be determined.

Your bank should be aware that, by way of a confidential schedule to an Order dated 21 July 2005, various undertakings have been given by the Defendants. We would expect your bank to confirm with Sibneft that any prospective deal would not amount to a breach of such undertakings.

Sibir considers, on advice, that its case against the Defendants is exceptionally strong and that Sibneft's various explanations for the dilution are completely nonsensical and will be rejected by the Courts. We have already written to Gazprom in order to put them on notice as a prospective purchaser. Sibir's claims against Sibneft will continue regardless of any changes in the ownership of that company. As matters currently stand, because Sibneft has refused to recognise the validity of Sibir's claims, the assets of the Sibneft group are overstated to the value of our claim (i.e. between $1.2 and $2.1 billion).

Yours faithfully

Henry Cameron

B1, what about other possibilities:-

3. BVI court decides it has no jurisdiction

4. BVI court throws out the case because sibneft does have docs showing it acted legally and known/agreed by SBE's main shareholder acting on behalf of the company

5. sibneft decides to battle it out because the it will take years to get a substantive verdict out of BVI and longer for it to be upheld thru appeals and then even more difficult to get the final verdict implemented. in the meantime sbe is spending shed loads of money on legal fees and the shareholders get fed up.

I too think that your option 2 is a strong possibility. but HC will not capitulate easily (got to admire the b@lls on that Scotsman) and there will be issues between russian national government interests and moscow city government interests that might scupper that idea.

WDIK, PDYOR.

camlad

wheres the release???

searching web but cannot find anything.

sp on the rise

No release but an 11p rise today - Nice. T10 traders on thoughts of strong interims maybe. Can't be many spare shares around though so expect big variances. Chav can't sell any of his so MM's will have to pay big prices come Friday sometime to get the shares they have sold. Good luck.

Any time now - some strong buying even the 100,000 was a late reported buy.
Tick ups ahead. Good luck

How can Gazprom buy Sibneft with BVI/RUSSIA court cases on going,will Sibir be awarded some type settlement,any views B/ONE.

80% profits and rising.

Makes all that time waiting through the last 2 years worthwhile.

Still plenty of upside.


Trying to get latest Project Reports from Salym.

They're big and they're beautiful (SBE's interims, of course).

Monday should be interesting and profitable to all holders.

WDIK, PDYOR.

camlad

The last month with Sibir has been great, well worth the long wait. The interims are fantastic, the bottom line is much better than I anticipated. The report outlines a number of on-going work which according to HC (and he can't be faulted) will reap rewards for the shareholders of which I am one for a very long time until at least 2009. This weekend is going to be interesting as all the newspapers will be full of Gazprom, sibneft, Partygaming, 888.com BUT best of all I shall enjoy reading SIBIR - They may sit up and take notice of an OIL GIANT in the making and then after the weekend there won't be any Monday morning blues not even if the price dips a little and yes maybe the Profit line had been factored into the current SP. The result of the BVI hasn't, the conservative reserves haven't, the ongoing and projected programmes haven't - but they will have to be 6 pound by Xmas 2005 and a nice little divi to look forward to in 2007 when the SP will be 15pound plus. DMORMSYDY.

4pound plus kick off tomorrow morning IMHO -any other guestimates

I think small rise tommorow.

Lots of MM's with knowledge buying Friday afternoon.

I next big ramp will be Gazprom deal.

Interseting develpments ongoing with Shell and GAZPROM at the moment.

Could all tie-in quite nicely with Shell being 50-50 on Saylm.

I will try and dig around a bit tommorow.

Is sp. sliding last few days, any news,any views,B/one.

When HC said in his Chairmans statement that 'Good news IS JUST AROUND THE CORNER' as always he was as straight as a die'. The BVI result has now got to be favourable (odds on I'd say) even the Moscow Courts are showing SOLIDARITY behind SBE and HC (After all they have a vested interest namely Moscow Oil and Gas'. Gazprom will now realise that SBE mean business. BVI positive result IMHO will lead to Gazprom either taking SBE out at a premium or SBE being taken out be a competitor namely BP who must be after a strong foothold in Russia and where best to place itself? In SBE position, thats correct. Strengthed my holding by a further 5000 shares shortly after 2.20pm today. My confidence isn't waning one iota. Again a lot of watchers but not contributors apart from the old names and may I add its good to keep seeing the old faithfulls. Good Luck but dont forget DYOR. Not ramping this share there is no need to it speaks for itself . Your either in it or not - but I'm glad i am. I'd rather be in it than out at the moment. I can only reiterate what HC states 'Good news is just around the corner.' This one is going to be the icing on the cake

Sibir Energy H1 profits boosted by higher sales, increased production
AFX


LONDON (AFX) - Oil company Sibir Energy PLC said higher sales and increased production lead to an operating profit of 18.2 mln stg in the six months to June compared with a loss of 3.5 mln the previous year.

The group's output increased to 1.41 mln barrels from 961,492 barrels, comprising a 33 pct rise in production from Magma to 1.18 mln and Evikhon's share of SPD's production of 224,337 barrels.

Sales jumped to 137 mln stg from 45.7 mln. Sales of crude oil and oil products were 739,701 and 6.6 mln barrels respectively, up from 539,663 and 2.6 mln barrels last time.

Gross profits were 216 pct higher at 25.3 mln stg and gross profits on crude oil sales rose to 9 mln stg from 5.3 mln, boosted by increased production at Magma and higher margins due to the rise in oil prices.

Commenting on its dispute with Sibneft Yugra, Sibir said its confidence in a satisfactory outcome is higher than ever after the news that Gazprom is aiming to take a majority stake in Sibneft in a 13 bln usd deal.

The dispute related to the dilution of Yugraneft's stake in Sibneft Yugra.

Yugraneft, which is controlled by Sibir Energy, helped set up the OOO NK Sibneft Yugra oil field venture with Sibneft. Since then Yugraneft's interest in Sibneft Yugra has been diluted from 50 pct to less than 1 pct with Sibneft, controlled by businessman Roman Abramovich, and associated companies owning more than 99 pct.

newsdesk@afxnews.com

ak/


Sibir Energy PLC
05 October 2005

5 October 2005

SIBIR ENERGY plc ('Sibir')

Moscow Dismisses Eight Appeals by Sibneft in Relation
to Yugraneft Indebtedness to Sibir Group

On Tuesday 4th October Moscow's Ninth Appellate Court ( 'Appellate Court')
rejected eight appeals by Sibneft against the earlier ruling of the Moscow
Arbitration Court ('Arbitration Court') on June 14th, 2005. The Arbitration
Court had ruled that Sibir, Magma and Evikhon ( both subsidiaries of Sibir ) are
owed 875 million rubles ($31.25 million ) by Yugraneft. This amount represents
96.7 percent of Yugraneft's total debt. In rejecting Sibneft's appeals the
Appellate court re-affirmed that the Sibir Group is by far the largest creditor
of Yugraneft thus safeguarding the status of the court appointed independent and
external administrator.

Commenting on the ruling, Henry Cameron, Chief Executive of Sibir said,
'Sibneft's attempts to annul legitimate loan agreements between Yugraneft, Sibir
and its subsidiaries were designed to procure the liquidation of Yugraneft.
Yesterday's Appellate Court decisions yet again frustrate Sibneft's attempts to
make irreversible its fraudulent dilution of Sibir and Moscow Oil and Gas
Company's rightful 50% interest in Sibneft Yugra.'

Enquiries to:

Henry Cameron, CEO
Moscow +7 095 792 3045

Sibir Energy says Moscow appeals court rejects Sibneft appeals
AFX


LONDON (AFX) - Sibir Energy PLC said the Moscow Ninth Appellate Court has rejected eight appeals by its rival Sibneft against an earlier ruling of the Moscow Arbitration Court that Sibir and its subsidiaries Magma and Evikhon are owed 31.25 mln usd by Sibneft subsidiary Yugraneft.

Sibir said that in rejecting Sibneft's appeals, the court had re-affirmed the fact that the Sibir Group is by far the largest creditor of Yugraneft. Sibir and its subsidiaries are owed 96.7 pct of Yugraneft's total debt.

Sibir chief executive Henry Cameron said that Sibneft's attempts to annul loan agreements between Yugraneft, Sibir and its subsidiaries were designed to bring about Yugraneft's liquidation.

The ruling is the latest development in a long-running dispute triggered by the dilution of Sibir's stake in the Sibneft Yugra oil field project.

newsdesk@afxnews.com

har/cw

Shell and Gazprom Sign MoU for Share Swap
07-Jul-2005
Shell and Gazprom sign Memorandum of Understanding to swap shares in Zapolyarnoye-Necomian and Sakhalin-2 projects

--------------------------------------------------------------------------------




Alexey Miller, Chairman of the Management Committee of Gazprom, and Jeroen van der Veer, Chief Executive of the Royal Dutch/Shell Group of Companies, signed a Memorandum of Understanding in London today regarding a swap of shares in Zapolyarnoye-Neocomian and Sakhalin-II projects.

The swap is strategically important to both parties. The Memorandum of Understanding sets out the high level principles of a transaction through which Gazprom would acquire up to 25 per cent plus one share in the Sakhalin II venture, and Shell would acquire a 50 per cent interest in the Zapolyarnoye Neocomian field. The difference in value, to be defined by the parties, will be compensated through a package of cash and other assets to be agreed by the parties.

Preparation for the execution of the swap will be coordinated by a steering committee and joint working groups. The steering committee will consist, on principles of parity, of representatives of Gazprom and Shell. According to the Memorandum, the parties intend to commence due diligence and evaluation on their respective assets and finalize the definitive arrangements for the transaction in 2006.

"In pursuit of its strategy, Gazprom becomes a player in the LNG sector and enters new markets. The document signed today opens the way for Gazprom to become in the nearest future a large shareholder of a fast growing project for hydrocarbons development, LNG production and sale to strategic markets in North America and Asia-Pacific Region," said Alexey Miller after the signing ceremony.

"We welcome Gazprom as a great Russian partner in the Sakhalin II project and are confident Gazprom will make significant contributions towards maximizing the long term value of the project. Joint development of the Zapolyarnoye-Neocomian field will build on our position in Western Siberia, where we already have our successful Salym project. Today strengthens the good relationship between Shell and Gazprom and is a basis for further cooperation on integrated gas projects both in Russia and internationally," said Jeroen van der Veer.


ENQUIRIES:
Shell International Media Relations +44 (0) 20 7934 6238/3453/3277
+31 70 377 8750
Gazprom Media Relations +7 095 7191077

Looking at this article again, I still see Shell as a more probable buyer of SBE.
This would suit Gazprom.

http://www.spdnv.ru/en/


In case anyone didn't know about this link .

Why the Bomb at 3pm???

Cannot find anything

Why drop of 25 pence,are we being told fodder up to now,is this going to collapse,any views.

No real clues on the trades list. A lot of marketmakers trades but could be normal market reaction to oils going down. Not found any basics to account for the " drop "

What is due to happen next,any views .

NEWS JUST IN

Fill yer boots in the morning a gusher of a day expected now all appeals have been knocked on the head.

BVI result awaited - Pipe connection date imminent - New acquisitions will be made as per HC comment. $31.25million bad debt to be sorted hopefully via Gazprom/Sibnefts acknowledgement/honouring of the Yugra debt.

11/10/2005
20:59 Moscow Arbitration Court dismissed Sibneft petition for appeal against the Court ruling reversed the meeting's decision of Yugraneft creditors.

--------------------------------------------------------------------------------

On October 11, Arbitration Court of Moscow has dismissed petition for appeal of Sibneft against the Court ruling on September 8, 2005 reversed the meeting's desicion of Yugraneft creditors, Sibir Energy informed.

The Court has also dismissed Sibneft appeal against the Court ruling on September 8 in accordance to which Sibneft was rejected to grant a petition to discharge Yugraneft manager based on the decision of creditors meeting held on August 1, 2005.

On Tuesday 4th October Moscow's Ninth Appellate Court rejected eight appeals by Sibneft against the earlier ruling of the Moscow Arbitration Court on June 14th, 2005. The Arbitration Court had ruled that Sibir, Magma and Evikhon ( both subsidiaries of Sibir ) are owed 875 million rubles ($31.25 million ) by Yugraneft. This amount represents 96.7 percent of Yugraneft's total debt. In rejecting Sibneft's appeals the Appellate court re-affirmed that the Sibir Group is by far the largest creditor of Yugraneft thus safeguarding the status of the court appointed independent and external administrator.

http://www.akm.ru/eng/news/2005/october/11/ns1557222.htm

B/one, if all appeals etc. thrown out in court by Sibneft vs.Sbe in Moscow ,how no RNS, any views

When is the News Release for this Jump???? BANKONE???

Is jump today to do with oil pipe connection news or court news,any views.

Just checked with People in the Field , and the Pipe connection is not their yet.

It seems there is an article in today's Times that the jump in SBE is because of an unrelated acquisition by Urals Energy but which highlighted the price of oil in Russia and indicated how cheap SBE was. Broker indicative price is now in excess of
4.

WDIK, PDYOR.

camlad

-12% , Whats the News????

Is this a tree shake or some hidden disaster,B/ONE,where are you.

phoned around the field and no clues!!!. Bought in some more , in case of a bounce!

From Moscow Times Today!!!


Sibneft Refinery Decision


Oil firm Sibneft claimed control of one of Russia's largest refineries together with its partner Tatneft on Tuesday, citing a favorable court decision.

A Sibneft spokesman said that Sibneft's and Tatneft's combined stakes in the Moscow refinery had risen to 56 percent of voting shares from less than 50 percent following a court decision to ban the refinery from paying dividends on preferred shares out of 2004 results.

Under Russian law, preferred shares become voting shares if dividends are not paid. The ruling could be a blow for Sibir Energy, which has a 45 percent interest in the Moscow Oil & Gas Company. MOGC, which has had control of the plant up to now, is majority owned by the city of Moscow. (Reuters)

Anyone know whu the incrase in SP today?

Pipe-line official opening on Friday is the rumour.

is it rumours about that russian oil co looking for takeoVer targets im out of these soon as im able to much politic and coruption they haVe to contend with.

Salym Petroleum CPF On Stream!
22-Nov-2005
It is with great pleasure that I announce that Salym Petroleum has commenced to import oil from drilling cluster K-20 into the main Central Processing Facilities, and the flare has been lit!

--------------------------------------------------------------------------------



The oil flow commenced Saturday, November 19, at 11.30 Moscow time, with the flare being lit Monday, November 21, at 09:00 Moscow time. This occurred 26 months after official Project Sanction, with the project receiving Russian Federation permits from the Fire (PozhNadzor), Sanitation and Medical (SanEmpedemStantsii) and Technical (RosTechNadzor) Inspectorates to start up.

The starting of the heaters and filling of process facilities and stock tanks will take approximately 10 days, after which the booster and export pumps will start exporting onspec crude into the 90 kilometer export pipeline. Filling the pipeline will take another 2 weeks, meaning that our oil will reach the Custody Transfer Facilities for input into Transneft around December 15th. Contracts are in place!

The Bolshaya Neft event, meaning Big Oil (as First Oil was achieved a year early), will take place later this week to commemorate this event, at which time the Governor of KhMAO will officially "start" our facilities. We are preparing a video of the start-up, which will include scenes from this event, and will have the DVD ready shortly so you may enjoy the visual aspects of the start-up.

The above was achieved with SPD's reputation in Siberia being greatly enhanced by delivering on targets in a safe, environmentally and socially responsible manner. Importantly, we maintained an exellent safety record, with a TRCF performance expected to be well below target, under very demanding circumstances. Also, we managed to deliver the project thus far within 5% of the approved budget, and expect the life-cycle budget to come in as prognosed (although we have some work to do to ensure that happens!).

What we achieved was viewed as unlikely at best when SPD started on this road. Special thanks go to all the staff of SPD, who have worked tirelessly to accomplish what has been highlighted above. We still have much to do, but the path to success has been firmly put in place!


Dale Rollins
Chief Executive Officer
Salym Petroleum Development N.V.

24/11/2005

Sibir Announces Start of Commercial Production at Salym Fields


Sibir is proud to announce that, after nine years of involvement with the Salym group of fields, commercial production at the development is set to start on November 25, 2005, delivering on its long-held promise to shareholders to bring this asset on stream. Amongst the largest on-shore developments in Russia, the Salym project is operated by Salym Petroleum Development NV a 50:50 joint venture between Sibirs 100%-owned Evikhon subsidiary and Shell Salym Development BV.


Bringing the project to this stage has been a massive undertaking, accomplished in just 26 months since initial project sanction. Over $650 million has been invested so far to build an enormous infrastructure base, including an all-weather 50 km long road, power supply facilities, five well pads, the first train of the Central Processing Facility (CPF) capable of processing 3 million tonnes (22 million barrels) of oil per year (to be later extended to 9 million tonnes, or 66 milllion barrels, per year), in-field supply lines, an 88 km long oil export pipeline and other facilities.


On November 25, 2005 key infrastructure such as the CPF and oil export pipeline, which will transport the Salym oil to Transneft system, will come on stream. With this development the Salym fields will enter a fundamentally new phase dedicated to swiftly ramping up production. To this end, in 2006 four drilling rigs will be in operation at West Salym and a 5th drilling rig will be mobilized at Vadelyp. In addition to the 30 wells brought on stream in 2005, over 80 new development wells are slated for drilling in 2006 to achieve a total production of not less than 2 million tonnes (14.6 million barrels) as outlined in the technological schema.


The Salym development is a world class project by any measure with over 115 million tonnes (839 million barrels) of scope of recovery reserves and an expected peak production rate of not less than 22.6 thousand tonnes (165 thousand barrels) per day as in the technological schema by the end of the decade. Total project investment is forecast at $1.25 billion over the life of the project and is estimated to contribute over $ 12 billion in tax revenues to the Russian budget. At its peak in 2005 the project employed over 4,200 staff and contractors with over 90% of full-time staff made up of Russians.


An opening ceremony for Salym involving over 200 dignitaries, press, contractors and guests is being held on November 25 to mark the launch of production


Commenting on this landmark event, Henry Cameron, CEO of Sibir, said, Almost a decade ago Sibir made a strategic decision to dedicate itself to developing world-class assets in Russia and the launch of production at Salym is the realisation of that vision. Throughout that time the company has benefited from the energy and tireless dedication of many people who shared this vision including shareholders, employees, contractors, government officials in Khanti-Mansisk and Moscow as well as countless others who have made this achievement possible. We are especially proud to have Shell as our partner in the SPD Joint Venture and we publicly acknowledge the excellent work of SPD staff and contractors in bringing this massive project to this stage on time and on budget. By blending the best of international oil-field practice with Russian know-how and ingenuity SPD has established a first-class organisation that is setting new standards for technology, quality, and safety by which all future projects in Russia will be judged.


Hundreds of millions of barrels of oil will flow from the Salym fields over the next several decades. Some of that production will be sold for export, but more than half will go towards serving the energy needs of Russias growing economy. Through its Joint Venture partnership with the City of Moscow, the Moscow Oil and Gas Company (MOGC) Sibirs domestic crude will be destined for the Moscow City Refinery where it will be converted into fuels to be sold through MOGCs network of petrol stations in Russias booming capital. Thus, Sibir will realize a key component of it vision to create an integrated oil company, serving Russias energy needs from wellhead to wheel.


The Salym project is an example of how private investment in the Russias oil sector creates winning outcomes for all stakeholders: Tax revenues for the region and the federal government, jobs for local citizens, work for local contractors, high environmental and safety standards at the site, energy for Russia and energy for the world. Sibir is very pleased to have been a part of making these benefits a reality

well that is good news i think ill stay in a bit longer . hands off abramo you knob . 165k bopd nice.

Interesting that the Shell Internal Website had the news 2 days ago.(See Post above fromn me with the date 22/11/05).
Unfortunately I was in Holland at the Time and missed it otherwise would have bought a load more shares prior to today.

SPD announces launch of commercial production at Salym fields
24-Nov-2005
The opening ceremony for SPD Big Oil will take place at the operation site on November 25, 2005.

--------------------------------------------------------------------------------



Salym Petroleum Development NV (SPD) has achieved a major milestone in the development of the Salym Group of oilfields in Khanty-Mansi Autonomous Okrug, launching commercial production at the West Salym, the largest of the Salym fields. The opening ceremony for the launch, called SPD Big Oil, will take place at the operation site on November 25, 2005.

SPD has reached this remarkable landmark in just two years, carrying out an enormous construction program. An all-weather 50 km long road, power supply facilities, five well pads, the first train of the Central Processing Facility (CPF) capable of processing 3 million tonnes of oil per year (to be later extended to 9 million tonnes per year), in-field supply lines, an 88 km long oil export pipeline and other facilities have been put in place. In December 2004, one year ahead of the schedule stipulated by the License Agreement, SPD commenced limited production from initial wells and transported the oil by tanker truck.

On November 25, 2005 the key field infrastructure facilities - the CPF and oil export pipeline, which will transport the Salym oil in the Transneft system, will come on stream. With this event the development of West Salym enters into a fundamentally new phase paving the way to a rapid increase in oil production. In 2006, Upper Salym and Vadelyp will be tied-in to the West Salym CPF. The total oil production from all three Salym fields will be in excess of 2 million tonnes per year in 2006, outlined in the technological schema (around 15 million bbl).

Completing the West Salym CPF and the export pipeline and streaming 30 production wells are major accomplishments for SPD, commented SPD CEO Dale Rollins. - Our employees and our contractors have worked tirelessly for two years to achieve this goal and we are collectively very proud to see commercial production start on schedule. In reaching this milestone we have delivered on our commitments to both our shareholders and the Russian authorities. In addition to these operational accomplishments SPD has experienced explosive growth as a company. From an organization of just 15 employees in early 2003 SPD has grown into a large company of over 700 Russian and foreign specialists representing 14 nations, with Russian employees making up nearly 90% of the full-time staff. Currently, SPD is one of the most dynamic oil companies operating in Russia. Our achievements in West Salym development give us the confidence that the SPD team is prepared to tackle new challenges in the ongoing development of the Salym Fields, the largest new project in the energy sector in West Siberia for many years.

Salym Petroleum Development NV is a company established on a 50:50 basis by Shell Salym Development B.V. and OAO NK Evikhon controlled by Sibir Energy plc. SPD holds licenses for all three Salym fields (West Salym, Upper Salym and Vadelyp), which are located in the Khanty-Mansi Autonomous Okrug in Western Siberia, 190 kilometres from the town of Nefteyugansk.
Around the end of the decade the cumulative oil production from the Salym group of fields will be at least 6 million tonnes per year (around 44 million bbl), outlined in the technological schema. In terms of total investment - US$ 1.25 billion - the Salym Project is one of the largest investment projects with foreign capital in the Russian energy sector.

Salym Petroleum Development Company allocates US$385 Million for Salym fields in 2006
25-Nov-2005
In line with the overall field development plan of the Salym group of oil fields in Western Siberia, US$385 million will be allocated for the operations and continued development in 2006 .

--------------------------------------------------------------------------------



In line with the overall field development plan of the Salym group of oil fields in Western Siberia, US$385 million will be allocated for the operations and continued development in 2006 . This decision was made by the Supervisory Board of Salym Petroleum Development N.V. (SPD), a 50/50 joint venture between Shell Salym Development B.V. and Sibir Energys Evikhon subsidiary.

In 2006, the US$385 million budget is aimed at further development of Salym fields and increasing oil production in line with the plan, commented SPD CEO Dale Rollins. As in 2005, major construction activities will be carried out at West Salym, the largest of the Salym fields. Our top priorities will include construction and commissioning of a second train at the Central Processing Facility capable of handling an additional 3 million tons of oil per year, construction of new well pads and drilling new wells. Four drilling rigs will be in operation at West Salym. The 5th drilling rig is going to be mobilized for drilling activities at Vadelyp, where the first oil is scheduled for late 2006. In total, over 80 new development wells are slated for drilling in 2006 at Salym fields.

The 2006 workscope also includes construction of infield roads and expansion of oil gathering lines. In particular, a 36-km long multiphase interconnecting pipeline will be built to transport produced oil from Upper Salym to West Salym for processing at CPF and further pumping into Transneft system. Late 2006, Vadelyp field will also be hooked-up to that interconnecting pipeline. Thus, the field infrastructure will be used with maximum efficiency.

In 2006, the cumulative oil production from the Salym group of fields is expected to be in excess of 2 million tons (around 15 mln. bbl).

after there pipeline opening and production starting thought we would push on to much higher leVel somewhere aboVe 400 any Views .some big buyers comeing back but slow to moVe up.

Traded low as far as 299 early morning,then climbed up to 325, only up 2.50 ,whats going on.

chart looks good for a push aboVe 370 oil flowing from there pipeline 15december start of stepchange in sbe reVenue ,estimated 14.6 million barrels oil in o6 that seems a fantastic jump 14.6x$40min oil per barrel=$584mil=$292mil for sbe.dont think we will eVer see any of the stolen oil but this oil flow should see us on the road to 8 pounds in 2006 unless the russians stick it to us someway

Interesting Spike at 388p at 14:30 ???? Any ideas?

lboy, the AGM was today - perhaps people thought there would be some exciting news there and speculated accordingly? in the event, I heard the AGM seems to have been run of the mill. nothing new revealed, though some assurance that the fight over the "stolen" assets is not a lost cause.

all IMHO. WDIK, PDYOR.

camlad

From the Moscow Times this morning:- 09/12/05

Shell Interest in Sibir Stake
LONDON -- Royal Dutch Shell has repeatedly expressed interest in buying a 50 percent stake in the 1 billion barrel Salym Siberian oil field held by Sibir Energy , Sibir's main shareholder said on Thursday.
Shalva Chigirinsky said executives at Shell, which holds the other 50 percent, had expressed a desire to buy Sibir's stake as recently as this year but that the London-listed, Russia-focused oil company made it clear it was not a seller. (Reuters)

hope shell are still interested when we get to 8 pound why has price gone up when we take on 400 mil more debt.

see issue of new equity release this morning!

cellby, new placing at 4 per share. if you assume that placings are normally a discount to true market value, then SBE must be significantly underpriced at present.

WDIK, PDYOR.

camlad

I, too, was intrigued by the placing at 4.
So much so that I bought a largish tranche at 384p and 385p.
Seems like extremely good value !!

All IMHO of course.

150% profit on my original investment in dec 2003.

Happy days

i think the main thing holding these back is all this court case make institution nerVous been in and out x4 at small profit got in 370 when thought they were pushing on they droped oVer 30% 2 months later there doing what i thought they are good for would like to try hold for 100% but dont seem to haVe the nerV for it

cellby, i think the current increase and valuations are based on actual oil flow - current and future. I don't think there is now anything in the price for the "stolen" assets (i.e. the court case) - and quite rightly so.

If SBE were ever to get a favourable settlement and recover some/all of the assets, the SP would probably double from where it is now. I also think institutional investors are well aware of this situatoin and are not spooked. However, PI's are not so aware or perhaps live on hope and therefore the MM's can manipulate the SP on any bad news about the court case.

I've held for a long time (pre-suspension) and will continue to hold.

all IMHO.

WDIK, PDYOR.

camlad

any one got a shortterm target on these ,im thinking 446p there may be some profit taking tomorrow from holders who got in sub 200p . 9% is a big jump for one day would i get back in at my 370 if i sold now and took the 600pound thats on the table ,lots of small profits or wait see if the big one comes.

dont bank on big from Sibneft.
Have colleagues in Saylm and they say Sibir have no chance of recovering the stolen Asset though their case is as strong as it can be.
Best for a Big one is Shell takeover, With Corperation Tax in North Sea increased by 10% , Shell will be looking to Sell Off and Buy Barrels elsewhere, and Saylm is the best project in te portfolio.
Saylm has lots of near field potential and also is rumoured to have another 1 Bbl uproven reserves in a reservior below the existing producing fields.

there we are still in profit of 600 nearly all gone,cristal ball needed.

cellby, pullback to day was almost inevitable as short term profit takers made their money. I don't think this affects the medium term at all. don't forget there is still a buyer committed to a new placement at 4 in March 2006 - so the future is looking as good as ever.

all IMHO.

WDIK, PDYOR.

camlad

Sibir Energy Sells Magma
Sibir Energy and Moscow Oil and Gas Company (holds 31 percent in Sibir Energy) announced a tender for Magma, an oil producing subsidiary of Sibir Energy, which is to be included in the authorized capital of Moscow Oil and Gas Company. Shalva Chigirinsky, co-owner of Sibir Energy, reported to Kommersant that the board of Moscow Oil and Gas Company had endorsed the deal back in November.
Magma Oil Company operates at the Southern Deposit in the Nizhny Vartovsk district of Khanty-Mansi Autonomous Area. The oil fields residual reserves are estimated at 11.7 million metric tons of oil. Oil production grew 37.5 in 2005 compared to the previous year to come to 330,000 metric tons.

Sovlink, the financial consultant of Sibir Energy and Moscow Oil and Gas Company on the sale of Magma, sent letters to possible buyers of the company offering them 98 percent in Magma. Applications from buyers are accepted until late January when Sovlink will announce a shortlist of the companies to contend for Magma.

Shalva Chigirinsky, the co-owner of Sibir Energy, said that the board of directors of Moscow Oil and Gas Company had made the decision to sell Magma in November. Magma is currently in the process of the introduction to the authorized capital of Moscow Oil and Gas Company. Mr. Chigirinsky declined to name the companies willing to compete for the asset. Market watchers mention North Western Oil Group and TNK-BP as would-be buyers.

Shalva Chigirinsky earlier estimated Magma at over $200 million. Considering previous tenders for oil exploration and production licenses, Magma may be sold at between $300 and $350 million, according to experts.

Salym Petroleum Development produced 100,000th tonne of oil from West Salym Field
22-Dec-2005
Salym Petroleum Development NV (SPD) has achieved an important landmark in the development of West Salym, which is the largest of the three Salym fields developed by SPD.

--------------------------------------------------------------------------------



Salym Petroleum Development NV (SPD) has achieved an important landmark in the development of West Salym, which is the largest of the three Salym fields developed by SPD. On December 20, 2005 the 100,000th tonne of oil was produced from this field whereby SPD has achieved a production level stipulated in the West Salym licence as one of the major SPD commitments for 2005.

The first tonnes of oil were produced from West Salym field just one year ago in mid-December 2004. At the end of November 2005 the key field infrastructure facilities the Central Processing Facility, in-field supply lines, and an oil export pipeline were commissioned for operation. This paved the way for ramping up production and allowed SPD to meet its oil production commitments in the West Salym Licence Area.

For SPD, bringing on stream West Salym and production of more than 100,000 tonne of oil from this field represent the most significant events of 2005, commented SPD CEO Dale Rollins. - We finish this memorable year in good spirit because we have kept our promise to the SPD Shareholders and delivered on our commitments to the Russian Authorities with excellent performance in health, safety, environment protection and social performance including our responsibility to the community. The accomplishments of SPD and its contractors in the realization of Salym Project in 2005 make a solid base and an encouragement for successful tackling of 2006 challenges. The main challenge will be ensuring the total oil production from all three Salym fields next year in excess of 2 million tonnes (around 15 million bbl).

all the other oil producers are moVing up should be sbe turn for a brakeout 440-450 must be our short term leVel. this is on my list as a good play for o6 with such big oil number how can it stay down.

bid speculation in the industry is rife.

SBE will do well to hold off an approach this year

chart (25,50ma and bolly bands) looking just like last August when it put on 100p in about 10days.

with the placing at 400p this is a massive vote of confidence in the future potential, imho could see a 5bagger by 2009...

WHY is it dropping like a stone last 2 days,any views.

MB, can't see that SBE in particular is being singled out; seems to me that a lot of oilies getting hit. SBE is only marginally down from last Friday's close so this week hasn't been as bad as you seem to think.

WDIK, PDYOR.

camlad

Bennfld. sub. for shares is huge,amounts to 620 milliondollars about,apart from a p/up,what will they next acquire,any views.

Good question, mbugger.

According to the press release from 09 Dec 2005:

The introduction of Orton Oil and associated fundraising will be important elements in the Company achieving the following objectives over the next two to four years:
*Creating a major vertically integrated oil company with reserves of 700 million to one billion metric tons
*Attaining levels of oil production between 10 and 12 million tons annually from existing oil fields and through expected acquisitions
*Upgrading the Moscow Refinery with an aim of increasing refining capacity to between 12 and 14 million tons and attain 70%-75% light-ends
*Increasing the number of gas stations operated by the various entities controlled by the Company to approximately 150 in number and attaining Western levels of service at all sites.

I'd expect SBE to go after acquiring more unexplored acreage/licences in the hopes of finding another Salym (i.e. "through expected acquisitions").

BTW good news seems to be developing re Sibneft-Yugra now that Gazprom is involved (see RNS 02Mar2006). Hopefully Gazprom will deal with all Sibneft's nonsense and restore SBE's stake in Yugra . . .

Definitely worth holding on to!!

Up 10p this afternoon - good thing after the heart-stopping nosedive of the last few days!

MMs used to drop bid apparently recklessly to precipitate p.i.s to sell their sharesand then mop them up,also drop bid to faciltate large buyer at agreed low fav.price,but SBE is supposed to trade now under SETS ,but drop for the last week was frightening,and may be due to a trick under SETS,we havnt heard of yet,but rise today is a relief.

Trade today was between 452low to494high,volume rel low 1 mn.,amassive 42 p.swing,not due to any large volatile trading,but probably to do with bennfd. or oil valuations or russian movesbehind the scenes,any views.

I second that, MB.

Frankly I am amazed at how the purchase or sale of just a few shares seem to move the SP by such a wide margin. Unexpected for a co that's now worth a billion pounds. I would certainly welcome any light being shed.

Salym Petroleum Development to increase drilling scope at Salym oilfields
10-Mar-2006
By the end of 2006, a 5th drilling rig will be mobilized for drilling operations at the Salym group of oilfields developed by Salym Petroleum Development NV (SPD).

--------------------------------------------------------------------------------



On 3 March 2006, SPD signed a contract with one of its major drilling contractors - KCA Deutag - for a Russian-made mobile 200 tonne capacity drilling rig. The new unit will be manufactured during 2006 and put into operation in December 2006. It is to be used for drilling exploration and highly deviated wells, and also for drilling wells into possible high-pressure formations.

Mobilization of the new mobile drilling unit will allow to reduce the unit move time and increase the drilling scope at the Salym fields, commented SPD CEO Dale Rollins. Currently, four Russian-made drilling rigs of two types are in operation at the Salym fields, and they display excellent performance. Since the spring of 2004 till recently about 80 wells have been drilled with Russian-made drilling units at the Upper Salym and West Salym fields. This coming summer drilling operations will start at the Vadelyp fields with the aim to produce first oil by end 2006. SPD is planning to drill over 300 development wells at the Salym group of oilfields during the next three years.

LB - good post!

The SP's a bit choppy of late - anyone got any info?

Royal Dutch/Shell looking for third Russia project
14 March 2006

MOSCOW: Oil major Royal Dutch/Shell wants to expand its Russian operations and add a third big project, despite a huge cost overrun at its Sakhalin Energy venture, the firm's Russia chairman Chris Finlayson said.


"I'm looking for a substantive increase in the size of the business, both in Sakhalin and in west Siberia and potentially a third platform," Finlayson said in an interview.

"I think it will be a platform which is based on remote areas, strong technology input, probably Arctic, but a range of different options." Shell is still smarting from ballooning costs at Sakhalin, a huge liquefied natural gas project off Russia's Pacific coast.

It doubled the Sakhalin cost estimate from $US10 billion ($NZ15.67 billion) to $US20 billion last July, dismaying shareholders and angering the Russian government, which says it will now have to wait much longer before it sees any share of the profit.

Shell has sent "truckloads" of documents to the Russian agency investigating the cost overrun, which Finlayson said was caused by booming prices for inputs such as steel, the strength of the rouble and the project's complexity.

Another extra will be $US300 million to re-route pipelines to avoid harming rare grey whales, a decision taken last year.

But Finlayson said revised calculations carried out by top Russian experts showed Sakhalin remained a very good deal for Russia even at a conservative oil price, and he expected the cost negotiations to end during the third quarter of the year.

The cost hike also jeopardised Shell's plan to swap 25 per cent of Sakhalin out of its total 55 per cent holding for a half share of the massive deep deposits of Zapolyarnoye gas field, owned by Russian gas giant Gazprom.

Finlayson did not put a figure on Zapo's gas and condensate reserves, which Shell wants to market in Europe, but indicated there was more in its deposits than Shell has in Sakhalin.

"We are not going to be doing deals which reduce our reserves," he said.

With the value of Sakhalin Energy slashed by the cost overrun, Shell and Gazprom will spend months haggling over the two sides of the swap. Finlayson said the firms' confidential memorandum of understanding included a way of adjusting the value of the swap in case there was a difference in value.

One adjustment will be for Shell's minority partners in Sakhalin Energy, Japan's Mitsui and Mitsubishi, to give up some of their equity in the project, in which they hold 25 per cent and 20 per cent respectively.

"I think it's an excellent illustration of the strong alignment of the current shareholders in wanting to have Gazprom in this project," said Finlayson.

It is not clear what the Japanese firms will get in return.

Despite the cost overrun and a delayed first delivery date, Sakhalin Energy has sold virtually all its production capacity and is looking to expand. Its infrastructure would allow four LNG production trains instead of the current two.

"Whilst clearly the company must focus on delivering the first two trains of this massive project, you don't sit and wait until that's completely finished before you start thinking about more than that," Finlayson said.

Aside from Sakhalin, Shell is also looking for oil production opportunities, possibly expanding its west Siberian oil production joint venture, Salym Petroleum Development.

"We certainly have an aspiration to grow that position in west Siberia. Our preferred route is. . . new field development rather than the purchase of mature assets. So we're on the look-out for more." Salym, which is set to be producing around 165,000 barrels of oil per day by the end of the decade, is jointly owned by London-listed Sibir Energy, but Finlayson said Shell had no plans to buy out its joint venture partner.
Much of Russia's oil production growth in the last 15 years has come from using technology to eke more out of existing fields, but Finlayson said that trend would soon have to end.

"There are lots of undeveloped resources in Russia and the time is rapidly coming when attention will have to be paid to changing that exploration acreage into new development.

"That's where we're focusing at the moment," he said.

Shell was looking at the "whole periphery", including new areas of west Siberia, the undeveloped but remote fields of east Siberia and the Arctic, where changes in the sea ice were making the coast much more accessible and a likely home for another LNG terminal in the future, he said.

"We are keen on growing new positions over the short to medium term and starting to develop a third major platform in Russia. There are a number of things being looked at," he said.

"We are strong in LNG and LNG would be a good place, but we also have to see what else is possible."

An aquasition is on the cards by Shell although don't know any more details. A project with a Codename had been set up in the same way as that when Shell bought Enterprise.

More good info LB!! Thanks.

Meanwhile: a bit of a Bounce late morning/midday, up 4 on the day. Nice to see some blue after all this red! Hope it stays this way, although I'm a bit bothered that buyers of those 20 million shares that were recently placed at 400p might rush to sell for some early profit-taking in a couple of days when the stock is admitted for trading.

BTW I notice VOG is experiencing a similar bounce; meanwhile NOP, which has been rising like crazy the last few months, has dropped 4.

And later the same day: up 6.5p on the day.

RNS announces receipt of last tranche of cash, $202,316,747 for shares placed with Orton/Bennfield, bringing the total received to $620,358,052, or 235.25 million. Approx another 80 million are due to be confirmed on Monday 20th March from the 20 million open placing shares, giving SBE a cash pot of 315 million.

Production is also up to 26,000 bbl/day (13,000/day net to Sibir).

The RNS states:

Commenting on the announcement, Sibir CEO, Henry Cameron, said, 'This is a very
important development for Sibir as the company celebrates its tenth year of
activity. The funds received as a result of the subscription for these shares,
together with and the non pre-emptive share placing of 20,000,000 shares,
details of which will be announced on the 20th of March, will eliminate all
company borrowings and will provide the necessary cash to fund Sibir's remaining
commitments at the Salym project where production has increased in the space of
two and a half months to over 26,000 barrels a day and growing. Every bit as
important as the cash injection is the strengthening of the ultimate shareholder
profile. Much of Sibir's recent success is attributable to the dynamic role
played by its key Russian shareholder and the events announced today broaden the
scope of influence which the Russian shareholder brings to the company. This
behind us, we are able to concentrate our efforts on the recovery of our share
of Sibneft Yugra and get on with our announced plans to expand our production
and reserves in new projects.'

RNS today:

Sibir Energy PLC - Moscow Refinery Update
RNS Number:0030ASibir Energy PLC17 March 200617 March 2006 Sibir Energy plc ('Sibir')
Moscow Refinery Wins Court Case
Sibir announces that the Federal Arbitration Court today issued a final rulingin favour of the Moscow Oil Refinery ('MOR') striking down claims of Joy LudInternational Distributors ('Joy Lud') to enforce payment of $28 million inpunitive damages levied by the Stockholm Arbitration court against MOR.In 2004 Joy Lud filed suit for $300 million against MOR in the StockholmArbitration Court for losses and penalties claimed in connection with oilproduct supply agreements it had with MOR in the mid-1990s. The Stockholm Courtrejected the claims for losses and upheld a judgement against MOR in the amountof $28 million for penalties in connection with these dealings. In its decisiontoday, the Federal Arbitration Court upheld a December 8, 2005 decision rulingthat there was no legal basis under Russian law for upholding the Stockholmjudgement.Commenting on the ruling Sibir CEO, Henry Cameron, said, 'Sibir welcomes theoutcome of today's court decision and we are pleased that, under the managementof Moscow Oil and Gas Company, MOR has successfully defended itself againstthese erroneous claims.'

RNS out today:

>> Sibir Energy in placing of up to 20 mln shs through bookbuilding at 392p/shr
LONDON (AFX) - Sibir Energy PLC said it is launching a bookbuilt cash placing
of up to 20 mln new ordinary shares to shareholders at 392 pence each, as
approved at the company's EGM on Jan 27.

Demand for the placing will be determined through a bookbuilding process and it
is expected that the books will close no later than 4.30 pm today. <<


SP likely to drop later this week as the institutions lock in some instant profits ?? There is no lock-in period; placing shares will be admitted for trading on 23rd March.

Up 7p yesterday, up 4p this morning and with a very tight spread at 468/469.75. Is this the end of the recent slide?

Good news all the way for those still holding: today we're firmly back over 5. Bid: 510.5p Offer: 514.75p Change: 16.5

RNS last week announced latest improved production levels. Alas I baled out of my holding about a fortnight ago to pursue other opportunities and have forfeited about 40p a share. My Dad's still in, though, so he'll be pleased . . . .

More progress - RNS out today:

>> Sibir Energy PLC - Salym Power Plant Approval
RNS Number:4912BSibir Energy PLC13 April 200613 April 2006 SIBIR ENERGY plc Gas Turbine Power Plant Approved for Salym FieldsSalym Petroleum Development, NV, Sibir's 50:50 joint venture between itssubsidiary OAO NK Evikon and Shell dedicated to the development of the Salymfields in western Siberia, announced today that the shareholder SupervisoryBoard has allocated $54.9 million for the construction of a Gas Turbine PowerPlant at the Salym fields. Preparatory works on the project this year areexpected to cost $20.4 million and will bring the Salym project budget for 2006to $410 million.The 43.5 MW Gas Turbine Power Plant, to be constructed at West Salym, willensure stable supply of electric power for the Salym Project field facilitiesand will use associated gas from the fields. The facility is expected tocommence operation end 2007 - early 2008.Commenting on the SPD announcement, Sibir CEO, Henry Cameron, said, 'Theconstruction of the Gas Turbine Power Plant will help ensure uninterruptedgrowth in production at the Salym fields by providing a reliable andcost-effective electricity supply to the fields. This project also allows SPD todiscontinue flaring which will improve the environmental performance of theproject in accordance with international best practice.' <<

It gets better.

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Sibir Energy PLC - Production Update
RNS Number:9199BSibir Energy PLC25 April 200625 April 2006 Sibir Energy plc ('Sibir') Production UpdateSibir announces today that its total crude oil production rate for the weekbeginning April 24, 2006 averaged in excess of 25,000 barrels per day (bpd), amaterially new high for the company.Over 18,000 bpd of production is now represented by Sibir's 50% share of outputat the Salym group of fields, operated by Salym Petroleum Development, NV('SPD') - Sibir's joint venture with Shell in western Siberia - which is nowproducing in excess of 36,000 bpd.The balance of Sibir's daily production for the week of over 7,000 barrels perday was provided by OAO Magma, a production subsidiary 95% owned by Sibir whereproduction is expected to remain stable at current levels.Commenting on the achievement of this production milestone, Sibir CEO, HenryCameron, said, 'Today's announcement shows a 3,000 barrel a day productionincrease for Sibir in less than a month, demonstrating that production growth atthe Salym group of fields is proceeding smoothly towards its planned year-endtarget of 60,000 bpd (30,000 bpd Sibir share).'

Sibir Energy PLC - Sibneft Yugra Update
RNS Number:0010D Sibir Energy PLC 16 May 2006
16 May 2006 Sibir Energy plc ('Sibir')
BVI Appeal in Sibneft Yugra Case

Sibir has been advised by its English lawyers that upon completion of hearings in the BVI to secure jurisdiction against Sibneft and others in the SibneftYugra affair it became apparent that Sibir had lost its appeal. Neither Sibir nor its lawyers are aware of any formal judgment having been issued but Sibir has noted that Sibneft has announced a victory in this respect on their website. Sibir therefore makes this announcement to ensure an orderly market for all shareholders.Commenting on this announcement Sibir CEO Henry Cameron said 'Without establishing jurisdiction in the BVI our proceedings there can go no further. Sibir has from the moment it discovered the dilution openly recognised that finding a resolution to the dilution would be a long and arduous task but right is on our side and we will diligently and exhaustively pursue the other alternatives open to us until we get an acceptable result.'

Interesting RNS, above. I didn't think that SBE's SP had priced in the likelihood of a return of the Sibneft-Yugra stake.

However, in the current market conditions it's bear-runs all the way.

Given recent production updates, etc., I'm beginning to wonder if SBE is once again looking a little cheap.

WDIK, PDYOR etc.

Down 25% over seven trading days with today's fall just about the biggest. I would be interested to see when and where this stops skidding, as the word "bargain" is beginning to cross my mind, although "dirt cheap" is still hanging back and biding its time.

SBE Bid: 421p Offer: 422p Change: -55

.

iam still holding this company for 6000 worth of shares !! do i stay abit longer with this company?

Morning to anyone interested in SBE. Cracking set of results today and it looks like there could be resolution to the Sibneft dispute. I left this one in February but time to now re-examine I believe.

Any views?

This Russian oily is plunging like a brick.

No support at 400p. Expect SBE to reach 250p as oil price and demand are low

238p currently. Looks like it would go below 200p as oil price going down towards $65 soon

Unbelievable now less than 40p.

Corruption of the first degree...shareholders are suffering just to cover Chigirinsky's losses.



Sibir market value halves on real estate buy
AFX


By Dmitry Zhdannikov and Gleb Bryanski

MOSCOW, Dec 3 (Reuters) - The market value of London-listed Sibir Energy halved on Wednesday after the Russian oil firm said it would buy more distressed real estate assets from its key owner for $340 million in cash and debt.

Sibir had already outraged minority shareholders when it said in October it would buy some $157 million worth of real estate from its key owner, Russian businessman Shalva Chigirinsky, in a clear departure from its core oil business.

The new deal foresees the purchase of various real estate assets including Russia Tower, a 6OO-metre (1,970 foot) steel-and-glass symbol of new Russian wealth designed by Norman Foster to be Europe's tallest building, which was halted last month due to a lack of funding.

'This is a corporate scandal of the first class,' said Carl Merling, CEO of Swedish hedge fund Emeralt Investments, which has a big exposure to Russia but holds no Sibir shares.

'It is difficult in such a situation not to be negative towards Russian small caps with majority owners like Chigirinsky. When such things happen there is no mechanism for minority shareholders to protect their rights,' he said.

Sibir asked the shareholders to approve the purchase of additional real estate assets from Chigirinsky, spelt Tchigirinski by the company, at a general meeting on Dec. 18.

'Difficult times call for uncomfortable decisions to be made,' Sibir Chief Executive Henry Cameron said in a statement.

'Doing business in Russia has never been for the faint-hearted and sometimes requires difficult calls in the boardroom,' he added.

The company said the global financial crisis and consequential drop in share values have had 'a domino effect' on Chigirinsky's financial position.

Chigirinsky and his partner Igor Kesayev control 47 percent of Sibir and the government of Moscow owns another 18 percent.

The company produces oil in West Siberia and has a refinery and a petrol station network in Moscow.

Most of the projects that Sibir will acquire from Chigirinsky have been put on ice like many other real estate developments in Russia. Heavily indebted developers have been among the worst hit by the global liquidity squeeze.

The company said it will nevertheless have to spend $128 million on limited development and studies of some of the projects, including New Holland and Passage in St Petersburg, thus taking the sum of Sibir's support to $625 million.

Sibir had a net profit of $238.5 million in the first half of 2008.

Sibir has earlier denied reports that Chigirinsky and Kesayev could lose their stakes in the company after local media reported the businessmen were facing margin calls after putting their stakes in Sibir as collateral against bank loans.

'As the preservation of the company's shareholder structure was paramount, the board of Sibir has concluded that the company must take over the bulk of Mr Tchigirinski's remaining real estate business,' the company said on Wednesday.

Sibir said in a separate statement its finance director and member of the board, Alexander Betsky, resigned on Tuesday.

At 1050 GMT, Sibir was trading at 45.025 pence, down 55 percent on the day.

that is absolutely outrageous, but probably technically allowed under the company's mem and arts ..... that being so, there is bugger all anyone can do .... interestingly, sp is up a bit this morning, but surely not for long

am also amazed to see that the spread is just 0.25p

Well you got your rebound cynic.

SBE won't last long...investors are keeping away from such crooks.

nor does it deserve to, though i see sp jumped 11p yesterday

Dead cat bounce

53/53.5 this morning, so up a tad again ..... can't really disagree with you, and shall be sorely tempted to short shortly - well within the next few days anyway - if that proves possible

strange happenings at SBE this morning ..... up another 9p ..... shall avoid doing anything as it all looks too manipulated for comfort

updated at 11:52 - now +12p

Not bad a 50% since Thursday dont get many of them do you..rises that is.

shan't touch them

share performance has been quite extraordinary ..... shall watch out of curiosity but sure as hell wouldn't touch with my money, or what's left of it

Sibir Energy suspended after 210m discrepancy revealed - MoneyAM


Sibir Energy says its main shareholder Chalva Tchigirinski owes it $210m more than the company revealed in two recent circulars to shareholders.

Trading in the shares has been suspended at the company's request.

Sibir says its nomad, Strand Partners, was informed late yesterday that 'various Tchigirinski interests are currently indebted to Sibir in an amount of approximately $325 million and not approximately $115 million as set out in the latest circular'.

The company had previously announced that Tchigirinski was to repay $115.4 million advanced to help him avoid margin calls on bank loans secured against Sibir shares.

The money was advanced as partial payment for the purchase of two properties in Mr Tchigirinski's real estate portfolio, the Sovietsky Hotel and New Sovietskaya. Sibir said this had averted 'a sudden and uncontrolled change to Sibir's shareholder structure'.

However, the arrangement was called off after Sibir's major Russian shareholders asked the board not to proceed with resolutions related to real estate. Tchigirinski had undertaken to sell the properties and repay the debt 'as soon as reasonably practicable'.

The company's board would 'now assess the effect of this increase in the indebtedness on Sibir's ability to recover the indebtedness and the consequent impact on Sibir's financial position'.

It says that along with the major Russian shareholders who control approximately 67% of its share capital, it will conduct an enquiry into how the errors happened and make a full statement as soon as possible.

A general meeting scheduled for 27 February has been postponed until further notice.

sorry to see i was so prescient .... mitzy .... would like to think that you no longer hold, but fear i am wrong

Sibir is so dodgy - so corrupted.



Sibir starts High Court action - MoneyAM

Sibir Energy has launched High Court proceedings against former chief executive Henry Cameron and major shareholder Chalva Tchigirinski over alleged unauthorised payments.

The company is claiming not less than $328m but says it expects total claims to rise to approximately $400m.

Sibir says it has told the FSA it believes its share price may have been manipulated and transactions made using money taken from the company. It expects its shares will remain suspended from trading on AIM for the foreseeable future.

In a trading update, Sibir says that operationally it continues to perform profitably and is cash generative.

today's info that the alleged bid was a total fabrication comes as no surprise at all .... wonder how many idiots got suckered by the initial report and bought on the grey market?