Siberian Energy Group has entered into a joint venture agreement with UK-based Baltic Petroleum Limited that will involve petroleum exploration operations in Siberia.

Activities of the joint venture will include the exploration and development of Siberian Energy Group’s four petroleum license blocks in the Kurgan region of Siberia, covering over 635,000 acres.

The alliance agreement provides for the transfer by Siberian Energy of its ownership interest in Zauralneftegaz to the joint venture, with each party holding a 50% share. Baltic Petroleum will be responsible for all funding of the joint venture’s operations.

Commenting on the new partnership, David Zaikin, chairman and CEO of Siberian Energy Group, stated, We’re thrilled to welcome Baltic Petroleum and its team of expert geologists and petroleum engineers to Siberian Energy’s projects in Western Siberia. We’re confident that this new relationship with Baltic Petroleum will lead to a long-term and mutually beneficial partnership.

Baltic Petroleum has paid a $100,000 deposit upon exercising the option to form the joint venture and is currently conducting due diligence.