First quarter 2008 refining update

Refining volumes at the Khabarovsk refinery amounted to 6.469.000 barrels of oil in the first quarter 2008. This represents an 9 percent increase in volumes compared to 5.957.000 barrels refined in the fourth quarter 2007.

The price of Russian domestic oil products increased significantly during the first quarter 2008. Average net domestic wholesale prices increased by 24 per cent to 90.10 USD per barrel (USD 72.90) and average net domestic retail prices increased by 13 per cent amounting to 126.20 USD per barrel (USD 111.80) from the fourth quarter 2007. Net export prices were slightly lower at 53 USD per barrel (USD 56.50).

“First quarter operating conditions were favorable to our recently acquired downstream operations. Increased refining volumes and higher prices resulted in a significant increase in refining margins and we expect to present meaningful improvements in our financial performance later this month”, commented West Siberian’s Managing Director Maxim Barski and added: “As previously reported, our upstream performance also improved in the first quarter and consequently, the combined operations are off to a good start in 2008.”

In April 2008, West Siberian Resources Ltd. announced the successful completion of a merger with Alliance Oil which added downstream operations to the group and created a leading independent oil business with vertically integrated operations in Russia and Kazakhstan. Total oil production in 2008 is anticipated to reach 18.6 million barrels (10.6 million barrels in 2007). WSR also expects to refine 24,5 million barrels of oil in 2008 (23.6 pro forma 2007).


For further information:
Maxim Barski, Managing director, West Siberian Resources Ltd., tel. +7 495 956 48 82
Eric Forss, Chairman, West Siberian Resources Ltd., tel. +46 8 613 00 85

Also visit www.westsiberian.com