UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2006
SIBERIAN ENERGY GROUP INC.
---------------------------
(Exact name of registrant as specified in its charter)
Nevada 333-118902 52-2207080
--------------------------- ----------- -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
275 Madison Ave, 6th Floor, New York, NY 10016
----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(212) 828-3011
-------------------------------
Registrant's telephone number
--------------------------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS
Siberian Energy Group, Inc. ("we," "us," "our," and the "Company") own 50% of a
joint venture company, Zauralneftegaz, Ltd., a United Kingdom limited
company,(with Baltic Petroleum (E&P) Limited ("BP") owning the other 50%), which
owns 100% of OOO Zauralneftegaz., a Russian limited company ("ZNG"). ZNG
reported the results of certain high definition 2D seismic and gas studies
conducted on its Privolny license block (one of seven license blocks in the
Kurgan Region of Siberia, Russia, which it holds the rights to) showing
encouraging findings of the gas seismotomography program and the high definition
2D seismic, and ZNG's Board of Directors has decided to drill up to four
exploration wells in ZNG's Kurgan Region license blocks in connection with such
surveys. At least two of these wells are proposed to be drilled in northern
locations in the Privolny block and the other two wells are proposed to
potentially be drilled on the Mokrousovsky block, following the completion of 2D
studies on that block which is expected to be completed later this year. ZNG has
contracted a highly experienced Russian contractor to drill the wells, using an
Uralmash 3000 rig. It is anticipated that the first well will be drilled on the
Privolny block to a maximum depth of 2000 meters, with logging and coring
undertaken in accordance with a program designed by RPS Energy and the Tyumen
State Oil and Gas Institute in Russia, which will be used as the basis for a
drilling license application.
In the event that the wells prove successful in establishing the presence of
hydrocarbons, of which there can be no assurance, the Board of Directors of ZNG
intends that production testing will be supervised by a leading firm of
reservoir evaluation consultants and the Board will then determine the most
appropriate means of commercializing the license blocks.
The total budget for the exploration program and further seismic studies, which
the Board has proposed to shoot on ZNG's Lebyazhevsky licensed block, totals
approximately 8 million British pounds or $15 million US dollars. The funds were
raised by BP's parent via a placement of shares and it is anticipated that ZNG
will enter into a new loan agreement covering such funds as well as a gross
override royalty agreement with BP. This loan is not dilutive to our ownership
of ZNG.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SIBERIAN ENERGY GROUP, INC.
By: /s/ David Zaikin
-------------------------
David Zaikin, Chief Executive Officer
Dated: November 6, 2006