CALGARY, ALBERTA -- (Marketwire) -- 03/11/13 -- Kulczyk Oil Ventures Inc. (WARSAW: KOV) ("Kulczyk Oil", "KOV" or the "Company"), an international upstream oil and gas exploration and production company, is pleased to announce that the Olgovskoye-15 ("O-15") well has commenced drilling. The O-15 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.
The O-15 well, with a planned total measured depth ("MD") of 3,200 metres, will be drilled as a directional well to evaluate the potential of the Bashkirian R30c and Serpukhovian S5 reservoir sands to further develop the gas production capability of the Olgovskoye Field. The well is expected to take approximately 70 days to reach its planned MD.
The Olgovskoye Production Licence is located approximately 160 kilometres to the northwest of the City of Lugansk in northeastern Ukraine. Since KOV acquired its ownership interest in KUB-Gas in June 2010 five Olgovskoye gas wells have been tied-in to commercial production and two wells, Olgovskoye-6 ("O-6"), which was drilled prior to June 2010, and Olgovskoye-8 ("O-8"), were fracture stimulated in the fourth quarter of 2011. The O-6 well was tied-in as a producing gas well in early February 2012 at a gross rate of 1.5 million cubic feet per day ("MMcf/d") and the O-8 well was tied-in to commercial production in March 2012 at a gross rate of 1 MMcf/d. Gross production from the Olgovskoye Licence averaged 11.42MMcf/d to KUB-Gas (8.0 MMcf/d net to KOV) during the month of February, representing approximately 42% of total production from all of the licences.
About Kulczyk Oil
Kulczyk Oil is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Ukraine, Brunei and Syria and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine. The common shares of the Company trade on the Warsaw Stock Exchange under trading symbol "KOV".
In Ukraine, KOV owns an effective 70% interest in KUB-Gas LLC. The assets of KUB-Gas consist of 100% interests in five licences near to the City of Lugansk in the northeast part of Ukraine. Four of the licences are gas producing.
In Brunei, KOV owns a 90% working interest in a production sharing agreement which gives the Company the right to explore for and produce oil and natural gas from Block L, a 1,123 square kilometre area covering onshore and offshore areas in northern Brunei.
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 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. KOV declared force majeure, with respect to its operations in Syria, in July 2012.
The main shareholder of the Company is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.
For further information, please refer to the Kulczyk Oil website (www.kulczykoil.com).
Translation: This news release has been translated into Polish from the English original.
Forward-looking Statements This release may contain forward-looking statements made as of the date of this announcement with respect to future activities of KUB-Gas and related to its five licence areas in Ukraine and to certain wells drilled or seismic activities undertaken within those licence 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.
Suite 1170, 700-4th Al Shafar Investment Nowogrodzka 18/29Avenue SW, Calgary, Building, Suite 123, 00-511 Warsaw, PolandAlberta, Canada Shaikh Zayed Road, Telephone:Telephone: Dubai, UAE +48 (22) 414 21 00+1-403-264-8877 Telephone: +971-4-339-5212
Kulczyk Oil Ventures Inc. - Canada
Norman W. Holton
Kulczyk Oil Ventures Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00