Can't believe there's not a thread on these already. Well worth having in your portfolio surely.

An impressive breakout.
With small oil companies in focus - especially those with Eastern European exposure, SBE could run quickly to new highs.
This from the website:
"Sibir Energy plc is a UK independent oil and gas production company which listed on the Alternative Investment Market of the London Stock Exchange in 1997 (stock symbol: SBE). As of December 2003, on the basis of its market capitalisation of 297.33 million, Sibir is the 7th largest out of 754 AIM-listed companies.

Sibir has a pure Russian focus with 100% of its reserves and crude oil production coming from the oil-rich Khanty Mansiysk Region of Russian Western Siberia. As at 30 June 2003, Sibir's attributable oil and gas reserves amounted to 1.4 billion barrels.

Currently in production are Magma assets, Upper Salym and Priobskoye group of fields."

"From the beginning Sibir's strategy comprised five components:

To exploit the cheap oil in the ground opportunities existing in Russia


To achieve control over the assets underlying Sibir's Russian investments


To trade part of control over assets in return for the funding of the development of the majority of the assets on a non-recourse basis


To establish Sibir as the natural home for small to medium sized producers in Russia who have no future prospects


To structure Sibir as a unique and robust UK/Russian partnership which enables to access major expansion opportunities in Russia not otherwise available to UK investors
By 2000 strategies 1, 2 and 3 had been achieved and Sibir continues to look for opportunities. Strategy 4 is ongoing. Strategy 5 has been implemented and the results are evidenced by:

- agreement in principle to acquire a 25% interest in British Petroleum downstream network;
- participation in Moscow Oil Company. "

The chart broke out decisively last friday and today's price action implies that things could accelerate now with old highs of 47p being the first real level of resistance. Today's news from Cairn Energy will only add fuel to the fire as investors turn their attention to this sector. Along with JKX, SBE is a quality play with Russian exposure. DYOR as always.

oneill,
For this share - advfn & ample.
Must give news soon.

Anything that shares or IC suggests is usually crap. I had my fingers burned years ago by buying a tip from these mags and it went bankrupt!!!!!!!!

As usual GF, u ask questions about Shell or Russiaj venture. Well i'm in the oil business and Russia is high risk job after studying the country. And Putin is ramping up taxation lots too for the companies there so there is going to be litle growth from that expected just a few months ago.

As for Shell............well dont make me laugh. They dont know there arse from their elbow

i too have a holding in this company!only find out about it today has i have been away,i thought that this stock was going somewhere????????????????/

But still lots of positive thinkers on other boards - talks of buyouts of Sibneft and all sorts of things - should be interesting when news does come out - not a lot to do until then.

Extract from the Guardian today - Sibir are obviously caught in the middle of all this, let's hope that they are brokering a good deal for us!!!

Banks have warned Russian oil group Yukos that it is at risk of defaulting on a $1bn (560m) loan if it is forced to comply with an order from the tax authorities for $3.5bn.
The crisis could play into the hands of Chelsea football club owner Roman Abramovich, who has been trying to unwind a merger between his Sibneft oil firm and Yukos.

Shares in Yukos fell 10% to 320.1 roubles in Moscow following the concerns expressed by Citibank, Deutsche Bank and HSBC.

Standard & Poor's agency earlier slashed its rating on Yukos but a spokesman from the company tried to steady market nerves.

"This notice does not mean that the banks demand an early loan redemption or want to freeze our accounts," said Alexander Shadrin.

This morning Bruce Misamore, the Yukos finance director, is in London to persuade western investors that his firm will be able to successfully fight the claim from the Russian authorities.

Some analysts say the charge for unpaid taxes, surcharges and fines could bankrupt the group, but Yukos has argued it is "illegal and unfounded".

Meanwhile Yukos dismissed speculation that Mr Abramovich could be in discussions about the sale of a 25% stake in the Sibneft oil company he used to control to Total of France.

"There cannot be talk about a disposal because you cannot sell something you don't own," said a Yukos spokeswoman in London.

Yukos purchased a 92% stake in Sibneft in 2003 but Mr Abramovich has been trying to unwind the deal because of problems that have since troubled Yukos.

The most serious of these has been the imprisonment on fraud charges of its former chief executive, Mikhail Khodorkovsky.

The Financial Times reported yesterday that Total had won backing from the Kremlin to buy a quarter of Sibneft in a deal that would be worth $4bn.

But a number of American firms - including ChevronTexaco and ExxonMobil - are known to be keen to buy a holding in Sibneft, as is Shell.

Total and Sibneft refused to comment yesterday.

The future of the $11bn merger between Yukos and Sibneft could depend on the outcome of a Moscow court hearing tomorrow into the validity of a new share issue with which Yukos has partly paid for Sibneft.

There is also a Yukos board meeting at which Sibneft supporters could put forward new proposals for splitting the companies' merger.

....and from the FT

Total, the French oil company, has won preliminary backing from the Kremlin to take a 25 per cent stake in Sibneft, one of Russia's biggest oil companies.


If Moscow maintains its position, Total will edge out ChevronTexaco and ExxonMobil of the US, and Royal Dutch/Shell, the Anglo-Dutch energy group, in securing the second large corporate partnership in one of the most promising oil frontiers. BP struck the first big international energy partnership in Russia in a deal with TNK last year.

Initial reaction by Washington was anger.

"Those in the US administration who have heard this are extremely annoyed," said a Washington attorney specialising in international oil transactions. "This could harm the relationship between France and the US. It would be a good idea for Total to come to Washington as this is seen as the French government and French companies going behind the back of the US because it is clear US companies also want to do this deal."

Bankers said that Chevron-Texaco, the second-largest US energy group, was continuing to pursue a deal with Sibneft.

The administration of George W. Bush, US president, has been particularly active in trying to secure Russian oil as a strategic alternative to its Middle East suppliers.

People close to the two companies said Total was seeking a 25 per cent stake, plus one voting share of Sibneft. One banker said a 25 per cent holding of Sibneft was worth about $4bn and would fit in with the company's spending plans.

Roman Abramovich, who controls Sibneft and is one of Russia's most politically connected oligarchs, has been looking for a foreign buyer for a stake in the company following his decision to unwind the merger with Yukos, the Russian oil company.

One prominent business figure in Moscow and a Washington insider said a potential deal with Total had received an approving nod from the Kremlin.

But people following the discussions warn that they are not yet in their final stages and no formal deal was likely until Sibneft had been demerged from Yukos. A spokesman for Sibneft said: "We do not comment on market rumours. Our focus is on the demerger."

Because of Sibir's stake in MOGC & hence the link with Sibneft - see below.

MOGC
In terms of the final agreement between Sibir and the City, 55% of the shares in MOGC have been issued to the City with the remaining 45% issued to Sibir. The total contributions in kind made by Sibir and the City are described below. These were valued at $172 million and $222 million respectively. Voting as between Sibir and the City is shared 50:50. Yuri Mikhailivitch Lushkov the prominent and influential Mayor of Moscow is Chairman and Chalva Pavlovitch Tchigirinski, a Director and significant investor in Sibir, has been appointed Chief Executive of MOGC for the next 5 years.

The City of Moscow’s contributions in kind comprise the following:

38% (a controlling interest by virtue of the share classification) of MNPZ the company which owns the Moscow refinery. Annual refining capacity at the refinery is approximately 10 million tonnes or 73 million barrels.
38% (a controlling interest by virtue of the share classification) of Moctneftproduct (MNP). Assets of MNP include 17 distribution depots and an aggregate oil storage capacity of 267,000 cubic meters which represents 75% of Moscow’s and Moscow Region’s total storage capacity for oil products. Assets also include 69 gasoline stations, mainly in Moscow region.
100% of Moscow Fuel Company which owns 88 gasoline stations in Moscow City and one large terminal situated close to a main airport and the national water way network. It is also linked to Moscow refinery by rail and pipeline.
Sibir’s contributions in kind comprise the transfer of control of the interest in the holding company of Sibir’s subsidiary Ugraneft which in turn holds 50% of Sibneft-Yugra the licence holder of the South Priobskoye and East Palyanovskoye fields in Western Siberia. The total proven and probable reserves for these fields according to Russian Federal State Committee of Reserves classification are in excess of 1.5 billion barrels of oil. MOGC will now assume responsibility for obtaining the operational and financial data which Sibir has been unable to obtain from Sibneft-Yugra as reported to you in our last report. Given that the Board comprises prominent Russians we are confident that the missing information will be forthcoming soon.

As a shareholder of MOGC, Sibir will participate in the 50% entitlement of MOGC to supply the Moscow refinery. Refinery access has become an increasingly important factor in operating in Russia in view of the pipeline export capacity constraints which limit exports to approximately one third of production. In addition, recent overall increases in Russian production have increased the competition for pipeline access. As domestic crude sales are sold, most of the time, at a net back price well below the equivalent export price, it is important to have a way of adding value to Sibir’s non-exported sales. Sibir will do so by refining non-exported product through Moscow refinery, and sell the resultant refined product by way of export (not affected by the above mentioned pipeline constraints) or through MOGC’s large retail network, or to other customers such as power generation stations in the case of heating oil. Through this integrated network Sibir will optimise the value of its production.

Surely Yuri Mik... in looking after his own interests will also be indirectly looking us other Sibir investors??? This has to be some good news???

From the independent today.......

UK oil firm faces 100m hit as Abramovich deal turns sour
By Michael Jivkov
29 April 2004


Sibir Energy, the AIM-listed oil group, is facing a possible 100m write-down after a Russian joint venture with Roman Abramovich's Sibneft oil giant turned sour. The venture, called Sibneft-Yugra, was established in 2000 to explore oil reserves of the Priobskoye field in Siberia and it accounts for about 20 per cent of Sibir's total assets.

According to City sources, Sibir's 22.5 per cent holding in the venture has been "significantly diluted" by the mysterious issue of new shares. As a result of this move, Sibir now finds itself with a tiny shareholding - some say less than 1 per cent - in Sibneft-Yugra and financial sources claim it has been left out of pocket.

Last week, Sibir asked for its shares to be suspended from trading on the London stock market,"pending clarification of certain arrangements" relating to its interest in the Sibneft-Yugra joint venture. The shares were suspended at 28p, valuing the group at 489m.

It is thought that a shocked Sibir only found out about the change in the ownership structure a couple of weeks ago. The news will also raise questions about the level of controls that Sibir had put in place to manage the venture, oil industry experts said.

Sibir is believed to be trying to speak to its major shareholders before issuing a further statement and resuming trading in the shares. Shareholders include Nicholas Berry, a member of the family that used to own The Daily Telegraph.

Henry Cameron, the chief executive of Sibir, said: "The shares have been suspended to avoid a potential false market. We've agreed with the market authorities that we will make a full clarificatory statement as soon as we are in a position to do so. Everyone here is working flat out to achieve a satisfactory outcome and an end to the uncertainty."

He declined to detail the exact nature of the problem or its implications for Sibir shareholders.

Sibir owns its stake in Sibneft-Yugra via its shareholding in Moscow Oil & Gas Company (MOGC), which owns 50 per cent of Sibneft-Yugra. Sibir owns 45 per cent of MOGC, while the remaining 55 per cent is held by the Moscow city government, which also seems to have been disenfranchised as a result of the change in the shareholding structure.

Although Sibneft is controlled by Mr Abramovich, the owner of Chelsea Football Club, it is not clear whether he has personally been made aware of the nature of the dispute, which might end up in the Russian courts. Mr Abramovich is thought to be keen to sell a stake in his Sibneft group to an international oil company and may not welcome any adverse publicity from a dispute with Sibir, analysts said.

Sibneft's spokesman John Mann said yesterday: "Sibneft's shareholding in the Sibneft-Yugra joint venture was and remains 50 per cent as will be disclosed in the company's next quarterly report." Mr Mann declined to say who owns the other 50 per cent of the business. "You'll have to ask Sibir," he said.

Sibir has been in conflict with Sibneft for some time over the joint venture. As long ago as the 2002/03 annual report, Sibir warned its shareholders that it was having to revise the way it treated Sibneft-Yugra in accounting terms. Sibir complained that Sibneft was refusing to supply any operational or financial information to its partners.

One oil analyst in London said: "The implications of this are a bit broader than just Sibir. Over the last few years, more confidence has grown about doing business in Russia. People will be surprised that this sort of thing still goes on in Russia."

Sibir has reserves equal to 713 million barrels of oil; in 2003, it was producing 4,778 barrels a day. It is forecasting production of 6,380 barrels per day this year, rising to 12,258 next year and 53,550 barrels per day in 2006.

Its stated strategy is to structure itself as a "unique and robust Russo-Western partnership" to take advantage of major opportunities in Russia not available to Western investors. It has partnerships with BP and Shell.

My bet is it will return at 50% of suspension price (regretably)

this on basis that THEY have been fully stuffed by the Russians

if situation is not as bad as would currently appear then somewhere over the 14p mark depending.....

so much for my daughter being a good catch!

rgds

I struggle to understand how they could dilute the shareholding without the other partners knowing, especially the Moscow City Government. I can't see them lying down without an almighty fight.
One thing is for certain, I definately won't be cheering Chelsea on in the future.

I'm done with speculation on this one - just checking the RNS each day - not worth worrying about as there is not alot one can do.

Hi
you are absolutely right
there is nothing you can do

but stay on the ball, because when the situation is resolved EITHER way, the shares will come back and will present an excellent chance to get in
especially if deal goes AGAINST Sibir
price will open at probably 40 down ie at about 19p (IMO) although some papers suggest the hit will only (?) be about 100m so 20%

MMs are bound to overreact

I notice other 'russian' oil related or 'oil weighted' stocks gained yesterday
so perhaps some in the know consider atht lessons have been learned

nowhere to go so stay put!

rgds

I contacted Sibir over a week ago and got this reply today - doesn't say much but thought I would share it with you.

Dear Mr **********

Thank you for your e-mail below.

I apologise for the delay in responding to shareholders questions and concerns however I can assure that we our currently preparing an announcement for shareholders which will clarify the situation and answer your concerns. This announcement will be released as soon as possible.

Once again please accept our apologies for the delay.

Your sincerely

Andrew Harrison
Company Secretary

surely the company secretaries reply is quite reasonable in the circumstances, the basic problem with investing in Russia is they still don't know how the capitalist system works nor do they understand its advantages whwn worked properly.

Hi
for tipton11.........

I don't think anyone should underestimate the understanding of the Russians regarding the capitalist system........

and ESPECIALLY 'their understanding its advantages when worked properly'

I would have thought that current events re SIBIR prove rather conclusively that they know exactly what they are doing

whether they 'get away' with it remains to be seen, but if they do they will have won a very nice prize and proven their comprehensive understanding of the system

I suggest we keep our fingers crossed that correct procedures prevail and that for once 'sharp practices' do not succeed

for sure, if 'we' do come out all right it will be due to political intervention rather than the 'capitalist system' protecting the shareholder

rgds

another
Many thanks for your reply... I certainly agree that the solution,if any will be political, glsd I dont hold many or for that matter any BP.

RNS Number:2700Z
Sibir Energy PLC
01 June 2004

1 June 2004
Sibir Energy PLC ("Sibir" or the "Company")

Sibneft-Yugra Joint Venture ("Sibneft-Yugra")

Moscow Oil and Gas Company ("MOGC")

Introduction

On 19 April 2004 the Board of Sibir ("the Board") announced that it had been
granted the temporary suspension of trading on AIM (with immediate effect) of
both its ordinary shares of 10 pence each ("Ordinary Shares") and its
Convertible Secured Loan Stock 2004 ("Convertible Loan Stock") pending
clarification of certain arrangements relating to its Sibneft-Yugra joint
venture. The purpose of this announcement is to explain as far as possible at
this time what appears to have occurred with regard to Sibneft-Yugra and the
steps being taken by the Board to rectify the situation.

Formation of MOGC

In May 2003 Sibir and Central Fuel Company ("CFC") signed a foundation agreement
to establish MOGC, a joint venture company that would combine Sibir's upstream
interests in Sibneft-Yugra, held in its subsidiary, Yugraneft, with CFC's
downstream interests in Moscow (which includes inter alia, the Moscow Oil
Refinery). Sibir agreed to transfer its shares in Yugraneft in return for a 45
per cent. interest in MOGC. On 28 August 2003 shares in MOGC were allotted to
Sibir conditional, inter alia, on completion of the transfer to MOGC of its
interest in Yugraneft.

Independent valuations undertaken in connection with the formation of MOGC
ascribed a value of US $111.5 million to the shares in Yugraneft and a value of
US$ 136.2 million to CFC's downstream assets. As a result it was agreed that
Sibir would obtain a 45 per cent. economic interest in MOGC and CFC a 55 per
cent. interest. Voting rights and representation on the board of directors of
MOGC however would be shared 50:50 between the parties.

Dilution of Interest in Sibneft-Yugra

On 15 April 2004 the board of MOGC advised Sibir that it had discovered that
Yugraneft's interest in Sibneft-Yugra had been diluted from 50 per cent. to less
than 1 per cent. The suspension of the Ordinary Shares and Convertible Loan
Stock was requested as a result of this as soon as was practicable, pending
further clarification and verification of the position. A preliminary
investigation undertaken by Sibir confirms that this dilution appears to have
occurred and was done without the knowledge of the board of Yugraneft.

The Board intends to pursue with utmost vigour the restoration of Yugraneft's 50
per cent. shareholding in Sibneft-Yugra and has the support of CFC in taking
actions to preserve MOGC. The Board has obtained legal opinion that the dilutive
measures carried out at Sibneft-Yugra were illegal and Sibir has grounds for the
restitution of Yugraneft's 50 per cent. shareholding.

Consequences for Sibir and MOGC

The value of Sibir's contribution of Yugraneft to MOGC has clearly been impaired
as a result of the dilution in the Yugraneft holding in Sibneft-Yugra. In
recognition of the importance to Sibir of the formation of MOGC, Sibir is in the
process of finalising an agreement (the principal terms of which have been
agreed) with CFC and MOGC. The purpose of this agreement is to enable completion
to take place of the capitalisation of MOGC so allowing the allotment to Sibir
of its 45 per cent. interest in MOGC. Pursuant to this agreement the Company
will, subject to shareholder approval at an Extraordinary General Meeting, issue
new Ordinary Shares to MOGC as a temporary measure pending restitution of the
interest in Sibneft-Yugra.

The agreed mechanism for determining the number of the new Ordinary Shares to be
issued to MOGC will involve Sibir, in accordance with the laws of the Russian
Federation, obtaining an independent valuation of the net assets of Sibir (
including its interest in MOGC) and thereby obtaining a net asset value per
Ordinary Share. The new Ordinary Shares will be issued at this net asset value.
In addition CFC will, in accordance with the laws of the Russian Federation,
obtain a new independent valuation of the assets it is contributing to MOGC.
These valuations will determine the number of new Ordinary Shares which Sibir
will issue to MOGC for its 45 per cent. interest in MOGC.

CFC, in conjunction with Sibir, has appointed an independent valuer to carry out
the valuations and these are expected to be finalised shortly. The agreement to
issue new Ordinary Shares as temporary substitution for Sibneft-Yugra is
expected to be finalised on or about 11 June 2004.

As an alternative to this procudure, the Board may, at its discretion, elect to
assign other assets or deposit cash as the temporary measure pending restitution
of the interest in Sibneft-Yugra.

Suspension of Sibir Shares

When the independent valuations are agreed and the agreement with MOGC and CFC
finalised a further announcement will be made and a circular posted which will
set out in full the method by which the dilution occurred and the terms of the
agreement for the temporary substitution of Sibir shares (or other assets or
cash) for Sibneft-Yugra and which will convene an Extraordinary General Meeting
seeking shareholder approval for the issue of any new Ordinary Shares. It is
expected that the existing Ordinary Shares in issue and the Convertible Loan
Stock will remain suspended until after the EGM.

Enquiries:

Sibir Energy PLC
Henry Cameron, Chief Executive
Tel: (007) 095 792 3045

Robert Kirchner, Corporate Affairs
Tel: (007) 095 792 3045

Strand Partners Limited
Richard Fenhalls, Chief Executive
Tel: (020) 7409 3494

M Com
Nick Miles
Tel: (020) 7153 1535

Hmmm!

the original suggestion that this fiasco may result in a 20% 'hit' to us seems to be diminishing.....

or put another way the cost to 'us' of the hit appears to be growing!

if cameron an co. took their eyes off the ball before what says they will get it right now?

i certainly hope so as am heavily commited here

I have a reasonable holding (have been buying from 10p upwards) so prepared to sit out the intitial inevitable drop just to see what may happen. If I get some time I may try to understand what Sibir's potential asset value may be - anyone got any idea to save me delving?