Kulczyk Oil Ventures Inc.: Ukraine-K-7 Gas Discovery Tests Up To 5.9 MMcf/d

Kulczyk Oil Ventures Inc.: Ukraine-K-7 Gas Discovery Tests Up To 5.9 MMcf/d 
CALGARY, ALBERTA -- (Marketwire) -- 02/01/13 -- Kulczyk Oil Ventures
(WARSAW:KOV), an international upstream oil and gas exploration and
production company, is pleased to announce the discovery of
commercial volumes of natural gas in the Krutogorovskoye-7 ("K-7")
exploration well in Ukraine. The K-7 well is operated by KUB-Gas, an
indirect partially-owned subsidiary in which KOV has a 70% effective
ownership interest.  
The K-7 well commenced drilling in September 2012 and was cased to a
total depth ("TD") of 3,206 metres in early November 2012. Wireline
logging of the well indicated up to five potential gas zones in the
Bashkirian and Serpukhovian between depths of approximately 2,390
metres and 2,760 metres. A 10 metre section of the Bashkirian B12
zone, from a depth of 2,395 to 2,398 metres and from 2,400 to 2,407
metres, was selected for testing. 
Production testing of the B12 zone yielded an initial rate of 4.937
million cubic feet per day ("MMcf/d") and a final rate of 4,971
MMcf/d through an 8 millimetre ("mm") choke during a 50 minute
initial flow period. Average production rate during this initial
period was 4,934 MMcf/d. Flowing tubing pressure, which averaged
15,185 kilopascals ("kPa"), was fairly constant ranging between
15,196 kPa at the start of test to 15,300 kPa at the end of the
initial flow period.  
The well was flow tested again approximately three days after the
initial flow period for a total of 14 hours using various choke sizes
and achieving a maximum rate of 5.914 MMcf/d through a 9 mm choke at
a flowing pressure of 14,930 kPa. Average production through the 9 mm
choke was 5.896 MMcf/d at an average flowing pressure of 14,435 kPa.
Average flow rates and pressures during the three day test period are
shown in the table below: 

                                 Flow Rate             Flowing Pressure     
       Choke Size                (MMcf/d)                    (kPa)          
          5 mm                     2.274                    17,826          
        6 mm (1)                   3.356                    18,331          
          7 mm                     4.020                    16,148          
          8 mm                     4.877                    15,009          
          9 mm                     5.896                    14,435          
        6 mm (2)                   3.241                    17,700          
1 first flow                                                                
2 second flow                                                               

During the test the well was slugging condensate and analysis of well
data indicates a calculated rate of 33 barrels of condensate per MMcf
of gas. 
The well, which has now been shut-in to observe pressures, is
expected to be on production in the third quarter of 2013 after the
construction of 1.7 kilometre of new pipeline.  
Krutogorovskoye is a 1,100 hectare exploration licence granted to
KUB-Gas in 2004. It is located near the city of Lugansk,
approximately 105 kilometres to the southeast of the KUB-Gas licences
at Olgovskoye, North Makeevskoye and Makeevskoye and 12 kilometres
northwest of the KUB-Gas licence at Vergunskoye. 
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
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 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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