Kulczyk Oil Ventures Inc.: Ukraine-Dual Completions

Kulczyk Oil Ventures Inc.: Ukraine-Dual Completions Successful 
CALGARY, ALBERTA -- (Marketwire) -- 12/21/12 -- 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 the successful dual completion of two
wells in Ukraine during the fourth quarter of 2012. The wells,
Olgovskoye-18 ("O-18") and Makeevskoye-21 ("M-21"), are both operated
by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV
has a 70% effective ownership interest. To the knowledge of KOV these
wells are the first to be successfully dual completed in the Ukraine. 

--  The KUB-Gas owned snubbing unit was used to prepare the O-18 well for
    dual completion and perforate the B3 zone; 
--  The B3 zone initially tested gas at 0.700 MMcf/d before declining to a
    relatively low stabilized rate of 0.136 MMcf/d at a flowing pressure of
    550 psi; 
--  The Company will evaluate the pressure information to determine which
    additional operations (stimulation or compression) can be undertaken in
    the first quarter 2013 to improve flow; 
--  The R22 zone in the O-18 well (the original producing zone) is currently
    producing gas at an average rate of 1.4 MMcf/d; 
--  The snubbing unit was also used to dually complete the M-21 well in the
    R21tb zone. The R21tb was perforated and is expected to flow gas at
    commercial rates after a fracture stimulation currently schedule for the
    first quarter of 2013; 
--  Production from two zones in both the O-18 and M-21 wells is expected to
    commence in the first quarter of 2013. 

The O-18 well reached its original total depth ("TD") of 2,300 metres
in early November 2011 and, following analysis of data gathered
during drilling, was deepened to 2,650 metres and cased to the new TD
as a potential gas producer. Interpretation of wireline logs
indicated up to 38.5 metres of gas pay in 7 zones and of these one,
the R22 zone, a 4 metre thick Bashkirian sandstone reservoir at a
depth of 2,035 metres, was perforated and tested gas at a rate of
approximately 1.2 million cubic feet per day ("MMcf/d") through a 5
mm choke in mid-December 2011. The R22 zone was tied-in for
commercial production in March 2012. 
By utilizing the KUB-Gas owned snubbing unit, the B3 zone, a 13 metre
thick Bashkirian sandstone reservoir at a depth of 2,108 metres was
perforated without the need to suppress the gas flow from the R22
zone. The B3 zone flowed gas at 0.700 MMcf/d but declined to a
stabilized rate of 0.136 MMcf/d through a 3 mm choke after a two hour
flow test and was then shut-in for pressure buildup. Analysis of the
pressure data will assist in a determination of whether there is
damage to the formation or whether a frac is required. In the
meantime, wellsite compression is also being considered. 
The M-21 well reached its TD of 2,210 metres in March 2012. It
encountered 6 metres of gas pay in a Moscovian sandstone formation
called the R8 at a depth of 1,450 metres and a second potential gas
zone (the R21tb zone) in rocks of Bashkirian age at a depth of 2,115
metres. This deeper zone, which had not previously been tested in the
area, appeared to have approximately 10 metres of potential gas pay
based upon interpretation of wireline logs. The R8 zone was tied in
for commercial production in August 2012 at an initial rate of 1.7
The snubbing unit was used to perforate the well in the R21tb zone so
that the well is dually completed in both the R8 and R21tb zone. The
R21tb zone, as expected after interpretation of wireline logs and
information gathered during the drilling operation, is relatively
tight and a frac, expected to occur in the first quarter of 2013, is
needed before commercial gas production will be possible from this
lower zone.  
It is expected that production from two horizons in each of the O-18
and M-21 wells will commence in the first quarter of 2013. The
Company is confident that dual completions will be a cost-effective
way to improve overall production from the Ukraine assets. The dual
completion allows for natural gas production from the two zones at
the same time. A dual completion occurs when a wellbore is equipped
with tubulars and equipment to enable production from two segregated
zones. A snubbing unit is specialized service rig that allows for the
work over of wells under pressure without any need to kill an
existing producing zone. Stopping the flow from an existing producing
zone, especially one that is partially depleted through production,
can lead to damage to the producing zone leading to a permanent
impairment of its gas producing capability. The snubbing unit was
built for KUB-Gas in Canada and imported in to the Ukraine in January
2012. It can be moved in a few truck loads and can be rigged up and
ready for operations more quickly than a conventional service rig. 
Successful implementation of a program of dual completions will
enable KUB-Gas to increase production from existing producing wells.
More than 10 additional legacy wells have been identified as
potential dual completion candidates and it is anticipated that most
of the new wells drilled will be dual completed. 
Tim Elliott, President and Chief Executive Officer of KOV stated
"The successful use of our snubbing unit to conduct our first dual
completions is a significant milestone in our operations and to our
knowledge it is a first in Ukraine. While it took some time to train
our staff and get the appropriate regulatory approvals, it is great
to be able to introduce new technology into the country and get such
positive results, and I take this opportunity to thank the
KOV/KUB-Gas team for the dedication and hard work and congratulate
them on this success. The snubbing unit is a great tool that will
allow us to continue to increase production from both existing and
future wells."  
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
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 Avenue S.W., Calgary, Alberta, Canada                   
Telephone: +1-403-264-8877                                                  
Facsimile: +1-403-264-8861                                                  
Al Shafar Investment Building, Suite 123, Shaikh Zayed Road,                
Box 37174, Dubai, United Arab Emirates                                      
Telephone: +971-4-339-5212                                                  
Facsimile: +971-4-339-5174                                                  
Nowogrodzka 18/29                                                           
00-511 Warsaw, Poland                                                       
Telephone: +48 (22) 414 21 00                                               
Facsimile: +48 (22) 412 48 60                                               

Kulczyk Oil Ventures Inc. - Canada
Norman W. Holton
Vice Chairman
Kulczyk Oil Ventures Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00
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