West Siberian sells Samara oil field

West Siberian Resources Ltd has sold the Emelianovskoye field, a non-producing oil field in Samara, for USD 7 million . The sale which does not affect current nor future oil production will be recorded in the third quarter financials.

West Siberian Resources has sold 100% of the shares in ZAO "Reimpex Samara Neftepromysel", a subsidiary holding the license for the development of the Emelianovskoye oil field in Samara in the Volga Urals region. The Emelianovskoye field, which was part of the Saneco acquisition that closed in February 2006, is located approximately 100 kilometers from West Siberian’s producing fields and infrastructure in the region. At the time of the acquisition, the field was assigned zero value because of inferior quality of oil (heavy oil, high viscosity). The development of the field was not deemed economical as it did not meet WSR's investment criteria. The field is estimated to contain approximately 0.3 million barrels of proven oil reserves and 1.1 million barrels of probable reserves, according to DeGolyer&McNaughton's estimates. The net proceeds from the sale amounted to USD 6.99 million (including repayment of intra-company indebtedness). The book value of the assets amount to approximately USD 1 million. The sale will be recorded in the third quarter financials.