CALGARY, ALBERTA — (Marketwire) — 02/09/12 — Kulczyk Oil Ventures Inc. (“Kulczyk Oil”, “KOV” or the “Company”) (WARSAW: KOV), an international upstream oil and gas company, is pleased to report that the Olgovskoye-6 (“O-6”) well in Ukraine has commenced commercial production at a rate of more than 1.5 million cubic feet per day (“MMcf/d”) increasing total field production to more than 18.5 MMcf/d (13 MMcf/d net to KOV). The well is operated by KUB-Gas LLC (“KUB-Gas”), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.
Olgovskoye-6
The O-6 well was drilled in 2008 to a total depth (“TD”) of 2,530 metres. A potential gas-bearing zone, the R30c zone of Middle Bashkirian age, was penetrated at a depth of approximately 2,270 metres but subsequent evaluation of the zone at that time indicated that the zone had a very low permeability of less than 1 millidarcy and was not capable of flowing gas at commercial rates.
The R30c zone in the O-6 well was successfully fracture stimulated in the fourth quarter of 2011 as a part of a two well frac program also involving the Olgovskoye-8 (“O-8”) well. The 14 metre thick interval was frac–d with 25 tonnes of ceramic proppant. The frac, which was designed to penetrate beyond the immediate vicinity of the wellbore by creating fractures and increasing permeability to liberate gas trapped in the R30c reservoir, was very successful with test rates as high as 2.3 MMcf/d as reported in the KOV press release of 2 November 2011.
The O-8 well, which was successfully frac–d shortly after O-6, is expected to be on stream by early March.
About Kulczyk Oil
Kulczyk Oil is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine. In addition, KOV has an option to participate for a 9% net indirect working interest in OML 42 in Nigeria. The common shares of the Company trade on the Warsaw Stock Exchange under trading symbol “KOV”.
In Brunei, KOV owns working interests in two production sharing agreements which gives the Company the right to explore for and produce oil and natural gas from Block L and Block M. KOV owns a 90% working interest in Block L, a 1,110 square kilometre (275,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 1,505 square kilometre (372,000 acre) area onshore in southern Brunei.
In Ukraine, KOV owns an effective 70% interest in KUB-Gas LLC. The assets of KUB-Gas consist of 100% interests in five licenses near to the City of Lugansk in the northeast part of Ukraine. Four of the licenses are gas producing.
In Syria, KOV holds a participating interest of 50% in the Syria Block 9 production sharing contract which provides the right to explore for and, upon the satisfaction of certain conditions, to produce oil and gas from Block 9, a 10,032 square kilometre (2.48 million acre) area in northwest Syria. The Company has an agreement to assign a 5% ownership interest to a third party which is subject to the approval of Syrian authorities, and which, if approved, would leave the Company with a remaining effective interest of 45% in Syria Block 9.
In Nigeria, KOV has an option until 31 March 2012 to participate for a 9% net indirect interest in OML 42, an 814 km2 license area in the Niger Delta with oil production and shut-in oil and gas producing capability.
The main shareholder of the Company, Kulczyk Investments S.A. owns approximately 44 % of the issued common shares. Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.
For further information, please refer to the Kulczyk Oil website ().
Translation: This news release has been translated into Polish from the English original.
Forward-looking Statements This release contains forward-looking statements made as of the date of this announcement with respect to future activities of KUB-Gas and related to its five license areas in Ukraine and to certain wells drilled or seismic activities undertaken within those license areas that either are not or may not be historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, any potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors that could impair or prevent the Company from completing the expected activities on its projects include that the Company–s projects experience technical and mechanical problems, there are changes in product prices, failure to obtain regulatory approvals, the state of the national or international monetary, oil and gas, financial, political and economic markets in the jurisdictions where the Company operates and other risks not anticipated by the Company or disclosed in the Company–s published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties and actual results may vary materially from those expressed in the forward-looking statement. The Company undertakes no obligation to revise or update any forward-looking statements in this announcement to reflect events or circumstances after the date of this announcement, unless required by law.
Contacts:
Kulczyk Oil Ventures Inc. – Canada
Norman W. Holton
Vice Chairman
+1-403-264-8877
Kulczyk Oil Ventures Inc. – Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00