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TOT Energy and SIBBNS Form Oil Services Company

Posted on: Tuesday, 16 September 2008, 15:00 CDT

TOT Energy Inc., (OTCBB:TOTY), an emerging oilfield services company operating in Eastern Europe, and Russia-based oil exploration and drilling company SIBBNS (Sibburnefteservis) today announced that they have formed a joint venture company to compete in Russia's oil services sector, a $10 billion market that is expected to grow ten percent annually over the next two years. TOT Energy holds a 75 percent stake in the new private company named TOT - SIBBNS, with the remaining 25 percent controlled by SIBBNS.

TOT - SIBBNS has absorbed all of SIBBNS' assets, including oil drilling equipment and 190 oil field specialists. TOT - SIBBNS's expertise includes exploration and development, well drilling and other oilfield services specifically in Western Siberia, Russia's largest oil producing region. The new company intends to expand into other oil producing areas in Russia.

TOT - SIBBNS plans to build on the outstanding business reputation that SIBBNS earned while serving some of the largest corporations in Russia's oil and gas industry, including Schlumberger and TNK - BP. SIBBNS' legacy spans more than a half a century and stems from the former Soviet Union's Ministry of Geology.

"SIBBNS is a recognized leader in their market category with a strong track record," says Mike Zoi, Chief Executive Officer of TOT Energy. He adds, "The new joint venture company enables us to capitalize on the opportunities in Russia's oil service industry, a market expected to reach $12 billion by 2010."

Alexander Medvedev, a 35-year veteran of Russia's oil exploration industry who oversaw operations at SIBBNS has assumed the position of President of TOT - SIBBNS and Vice President of Russian Operations for TOT Energy.

He comments: "This is an exciting time for TOT - SIBBNS. As the world's demand for energy continues to increase, the economics of higher oil prices will further drive exploration projects resulting in major growth opportunities for our company. TOT - SIBBNS possesses the know-how, skills and technology to deliver solutions that help to measurably improve the performance and operating efficiency of our customers."

About TOT Energy:

TOT Energy Inc., (TOTY.OB) is a multi-national, diversified oil services company. TOT Energy provides oil and gas companies operating in Russia and other markets with exploratory and development well drilling and oilfield services. For more information, visit www.totenergy.com.

Safe Harbor Statement (TOT Energy Inc.)

Information in this press release may contain "forward-looking statements". Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of TOT Energy's service, increased levels of competition, technological changes, and other risks detailed from time to time in TOT Energy's periodic reports filed with the regulatory authorities. TOT Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Source: Business Wire

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