West Siberian Resources acquires Russian Oil Company

West Siberian Resources Ltd. (former Vostok Oil Ltd.), has signed an agreement to acquire Khvoinoye LLP, for MUSD 9. The major assets to be acquired are the Khvoinoye oil field and a local field refinery located in the Tomsk region of West Siberia. The acquisition increases West Siberian Resources’ oil production by approximately 200 barrels per day initially while total oil reserves increase by 18 million barrels. Significant production increases are expected in 2005 and 2006.

Khvoinoye LLP was originally part of the Tomskneftegasgeology Group (TNGG). The company’s oil field and refinery are located in the Tomsk region where West Siberian Resources currently operates several oil fields. The acquisition increases West Siberian Resources’ proven oil reserves by 11 million barrels. Probable reserves increase by 7 million barrels. The Khvoinoye oil field currently produces approximately 200 barrels of oil per day from two wells. Two additional wells are being drilled and are expected to be completed and on production during the first quarter 2005. In 2005 and 2006, West Siberian Resources plans to drill seven wells in the field in addition to investments in workovers on existing wells, geological surveys and infrastructure development, according to preliminary field development plans. Crude oil is transported from the field to the refinery where the refining process yields fuel oil, gasoline and diesel. The current refining capacity is 1000 barrels per day with the refinery located approximately 52 kilometres from the oil field. West Siberian Resources intends to finance the acquisition with cash and debt. The acquisition is subject to Russian Antimonopoly Committe approval. Such approval is expected in January 2005, following which the acqusition will be closed. “This acqusition fits with our growth strategy and is a good complement to our current operations. We plan to increase production and reserves, while realising combination effects and adding growth opportunities” Maxim Barski West Siberian Resources Managing Director said in a comment and added: “The local refinery provides improved margins and reduced oil price exposure”. For further information: Maxim Barski, Managing Director, West Siberian Resources Ltd., tel. +7 095 723 07 18 Eric Forss, Chairman, West Siberian Resources Ltd., tel. +46 8 613 00 85 Also visit www.westsiberian.com