CALGARY, ALBERTA -- (Marketwired) -- 04/09/13 -- Kulczyk Oil Ventures Inc. (WARSAW: KOV) ("Kulczyk Oil", "KOV" or the "Company"), an international upstream oil and gas exploration and production company, is very pleased to announce a new pool gas discovery on the Makeevskoye Licence in Ukraine. The Makeevskoye-16 ("M-16") exploration well has tested gas from the S5 zone at more than 4.3 million cubic feet per day ("MMcf/d"). M-16 is the deepest well drilled by the Company in Ukraine and this is the first time the Company has tested gas at commercial rates from a reservoir of Serpukhovian age, opening up new opportunities for future growth.
The M-16 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest and is the deepest well drilled to date by KUB-Gas.
-- S5 zone produced gas on test at a maximum stabilized rate of 4.3 MMcf/d;-- S13 zone scheduled for fracture stimulation later this year;-- first production from the M-16 well expected in approximately 3 months;-- three additional wells are being planned to further develop both the new S5 gas pool and other zones identified as potential gas reservoirs in the M-16 well.
Makeevskoye-16 Exploration Well
Having previously never drilled deeper than 3,200 metres, the M-16 exploration well is the deepest well drilled to date by the Company reaching a total depth ("TD") of 4,300 metres. It is the first well drilled by the Company through the entire Serpukhovian aged section which is overlain by the Moscovian and Bashkirian aged sediments that host the commercial gas reservoirs found previously in the immediate area. The M-16 well, located 6.7 kilometres to the northwest of the Makeevskoye-21 gas discovery drilled in the first quarter of 2012, commenced drilling in early August and reached its TD in late November 2012 before being cased in early December. Interpretation of wireline logs and other well data indicate potential for up to seven potential gas-bearing reservoirs and up to 48 metres of net gas pay in the M-16 well. Three of the prospective zones are in the Serpukhovian. The other zones are in sediments of Bashkirian and Moscovian age and one of them, the R30C zone at 2,503 metres, is already a significant producer on the Makeevskoye Licence. Testing of the M-16 well began in March.
The M-16 well was perforated in the deepest of the prospective zones, a sandstone of Serpukhovian age called the S13, over a gross interval from 3,684 to 3,707 metres on 2 March 2013. After the well was perforated a slight gas blow too small to measure was observed at the surface and the well was left open to the flare pit. Approximately two hours after perforation the Company shut in the well and observed a small increase in pressure. After being shut in for approximately 15 hours the pressure continued to increase and burnable gas was observed at the surface though there were no measurable flow rates. Based on open hole log analysis the well behaved as expected and the Company plans to fracture stimulate the S-13 zone this year.