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    Kulczyk Oil Ventures Commences O-18 Well at the Olgovskoye License in Ukraine

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Summary

Kulczyk Oil Ventures Inc. has commenced drilling of the O-18 well at the Olgovskoye License in Ukraine.

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Natural Gas & LNG News, News By Country, Ukraine

Kulczyk Oil Ventures Commences O-18 Well at the Olgovskoye License in Ukraine

Kulczyk Oil Ventures Inc. has commenced drilling of the O-18 well at the Olgovskoye License in Ukraine.

The well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.

The O-18 well, with a planned total depth ("TD") of 2,300 metres, will test gas-bearing reservoirs of Muscovian age to further develop the gas production capability of the Olgovskoye Field. The drilling of the O-18 well is expected to take 35 days.

The O-18 well is the fifth new well drilled on the Olgovskoye License and part of a larger development program on the KUB-Gas assets through 2011 and 2012 which has involved the drilling of new wells at O-8, O-9, O-12 and O-14.

The O-9 well recently commenced commercial production at a rate of approximately 2 million cubic feet per day ("MMcf/d"), resulting in an increase in total production from the Ukrainian assets to more than 12 MMcf/d (8.4 MMcf/d net to KOV) as disclosed in the KOV news release dated 30 September 2011.

The O-12 well was recently production tested at a maximum rate of 8.1 MMcf/d and is expected to be tied-in for commercial production later in Q4 2011 as disclosed in a KOV news release dated 4 October 2011.

The Olgovskoye Field currently produces from 5 wells (O-3, O-4, O-5, O-7 and O-9) with each well producing from a separate horizon.

KUB-Gas owns a 100% interest in the Olgovskoye, Makeevskoye, North Makeevskoye, Krutogorovskoye and Vergunskoye licenses in the Lugansk area of Ukraine.

Source: Kulczyk Oil Ventures