Sibneft’s proved oil and gas reserves as of January 1, 2005 rose to 4.827 billion barrels of oil equivalent from 4.779 billion barrels a year earlier, according to an audit conducted by independent US auditing firm Miller & Lents to specifications set by the Society of Petroleum Engineers (SPE).

The reserve figure includes 4.656 billion barrels (628.2 million tons) of proved oil reserves, compared to 4.623 billion barrels (621.9 million tons) at the beginning of 2004. Proved gas reserves rose to 1.027 trillion cubic feet (29.1 billion cubic meters) from 0.938 trillion cubic feet (26.6 billion cubic meters). Growth in proved oil reserves allowed Sibneft to replace 113% of its production in 2004.

A Miller & Lents audit of Sibneft’s reserves according to US Securities and Exchanges Commission (SEC) specifications showed even more significant growth. Proved oil and gas reserves rose to 2.552 billion barrels of oil equivalent as of January 1, 2005 from 2.453 billion barrels a year earlier. The total includes 2.461 billion barrels (332.1 million tons) of proved oil reserves and 0.550 trillion cubic feet (15.6 billion cubic meters) of proved gas reserves. Sibneft’s total proved SEC reserves grew by 4% from the previous year.

“Sibneft’s innovative program of hydrofracturing and horizontal drilling in 2004 allowed the company not only to replace production, but to actually increase reserves,” said Sibneft president Eugene Shvidler.

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777-3116, 777-3182

Fax: +7 (095) 777-3114

JohnM@sibneft.ru

www.sibneft.com