SOURCE: Siberian Energy Group, Inc.

April 17, 2007 08:30 ET

Siberian Energy Announces Management's Intention to Individually Purchase Shares of Common Stock in Open Market or in Private Transactions

NEW YORK, NY -- (MARKET WIRE) -- April 17, 2007 -- Siberian Energy Group, Inc. (OTCBB: SIBN) announced today that members of the Company's management team may purchase shares of the Company's common stock from time to time in the open market or in private transactions in the near future, reflecting management's confidence in the Company's long-term prospects.

David Zaikin, Chairman and Chief Executive Officer of Siberian Energy, commented, "Our management team believes that the current trading price of Siberian Energy's common stock does not represent the true value of the Company and our probability of success in developing oil and gas deposits in West Siberia, Russia."

In November 2006, Siberian Energy announced that OOO Zauralneftegaz (ZNG), the Joint Venture between Siberian Energy and Baltic Petroleum (E&P) Limited, had determined to drill up to four exploration wells in ZNG's blocks in the Kurgan region of Western Siberia. Exploratory drilling on the Privolny block commenced in January 2007 and drilling of two additional wells will begin later in the year.

ZNG holds seven licenses for oil and gas exploration in the Kurgan region of West Siberia. These fields cover more than one million acres along the pipeline infrastructure and are in close proximity to production fields owned by many of the world's largest oil companies. The West Siberia region accounts for 70% of oil production and 90% of natural gas production in Russia and 7% of global oil production. In addition, the region offers some of the lowest full-cycle production costs in the world, at an average of $7-9 per barrel, compared to an average of $15 per barrel in other locations.

More recently, Siberian Energy acquired 100% of Kondaneftegaz, a junior oil and gas company in the Khanty-Mansiysk region of West Siberia, which is currently the largest Russian oil-producing region. Kondaneftegaz applied for ten oil and gas licenses to be auctioned in 2007.

"Siberian Energy's strategy is to leverage our local market expertise and close government relations in the Kurgan region and competitive production costs to minimize risk and accelerate our development," continued Mr. Zaikin.

About Siberian Energy Group

Siberian Energy is a unique, U.S.-based public oil and gas exploration company with 100% of its assets located in West Siberia, Russia. The Company evaluates investment and acquisition opportunities in Russia and Eastern Europe with the goal of bringing a portfolio of natural resource licenses and operating companies to Western investors. Siberian Energy strives to provide an attractive ROI to shareholders by pursuing high-yield investment projects, reducing costs, and adhering to strict principles of transparency, disclosure and environmental consciousness. Additional information may be found at www.siberianenergy.com.

The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the company. Readers should carefully review the risks described in other documents the company files from time to time with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.

Contact Information

  • Contacts:
    Siberian Energy Group, Inc.
    David Zaikin
    Chief Executive Officer
    Tel: 212-828-3011
    Email: Email Contact

    The Global Consulting Group
    Rachel Levine
    Investor Relations
    Tel: 646-284-9439
    Email: Email Contact

    Ivette Almeida
    Media Relations
    Tel: 646-284-9455
    Email: Email Contact