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.

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?

Has anything else happened yet? I have received any emails from Sibir as yet about "temporary share substitution for Sibneft-Yugra"

not sure if its good news or bad!
but price of Sibneft shares in Moscow is rising
some 5% last week

re Sibirs net asset value
what news
I got nowhere and discovered nothing of value from reports sent
rgds

Excuse my ignorance - and maybe I can get some education here - but weren't the shares suspended on 1st June? Also, I can only see a zero price on AIM.

Is there something I don't know?

Methinks this co. is in deep doo-doo.

Rather unfortunate, but that's life in dealing with the Ruskies.

JKX went through a very similar thing a few years ago.

Best of luck folks,
Al