Siberian Energy Group Inc. is a development-stage company. The Company, through its subsidiary Kondaneftegaz, LLC (KNG), has been engaged in the business of exploiting and developing certain oil and gas, and other petroleum products licenses. As of December 31, 2008, the Company holds investments in Zauralneftegaz Limited (ZNG, Ltd.) and KNG. Both companies are operating in the Western Siberia region of Russia and are involved in oil and gas exploration. The two licensed areas lie in the Karabashsky zone in the Khanty-Mansiysk Autonomous area of the Russian Federation. KNG has its principal place of business in the city of Khanty-Mansiysk, Russia. KNG has prepared and co-ordinated with Russian authorities the Program of exploration works on the Karabashski 61 and Karabashski 67 license areas.