Kulczyk Oil Ventures Starts Drilling at North Makeevskoye-2 Well in Ukraine
Kulczyk Oil Ventures Inc. (KOV) has announced it has commenced drilling at the North Makeevskoye-2 (NM-2) exploration well in Ukraine. NM-2 is located in the southern part of the North Makeevskoye Exploration License, only 4 kilometres north of the Makeevskoye gas production facility. KOV recently reported record high production levels at its Makeevskoye-20 (M-20) well.
The NM-2 exploration well will be drilled as a directional well with a planned measured depth of 3,187 metres and a planned true vertical depth of 2,636 metres. The well is expected to take approximately 45 days to reach its planned measured depth. The NM-2 well, which will target multiple sandstone reservoirs of Moscovian, Bashkirian and Serpukhovian age, will be drilled with the KUB-Gas owned K-200 drilling rig. The NM-2 well is operated by KUB-Gas LLC, a partially-owned subsidiary in which KOV has a 70% effective ownership interest.
Internal estimates of the Prospective Resources which may be contained in the prospect being drilled by NM-2, effective as at 29 November 2012, were prepared by KOV management who are qualified reserves evaluators in accordance with the Canadian Oil and Gas Evaluators (andbook. The estimates range between a High Estimate of 137.48 Bcf and a Low Estimate of 14.44 Bcf, with a Best Estimate of 44.25 Bcf. These estimated Prospective Resource volumes are un-risked and are for the 70% effective interest of KOV in the NM-2 prospect.
The North Makeevskoye Exploration Licence is located immediately northeast of KUB-Gas' Makeevskoye and Olgovskoye licences, approximately 130 kilometres to the northwest of the City of Lugansk in eastern Ukraine. The Company believes the licence to be geologically similar to the productive areas which lie along the primary South-Eastern Dnieper-Donets Basin gas/condensate structural trend - such as the adjacent KUB-Gas Makeevskoye and Olgovskoye Licences.
In the first quarter of 2012, 225 km2 of 3D seismic data was acquired over the majority of the North Makeevskoye Exploration Licence. Interpretation of the new 3D seismic data in combination with the 71 kilometres of 2D seismic acquired during the second quarter of 2011 and 275 kilometres of pre-existing 2D seismic data has contributed to the overall geological understanding of the North Makeevskoye Exploration Licence and resulted in five additional structural prospects being identified. The NM-2 well, which will evaluate the potential of the first of the prospect defined by 3D seismic, is located 13 kilometres to the southeast of the North Makeevskoye-1 ("NM-1") well which was drilled during the second quarter of 2012 on legacy 2D seismic data and cased to TD as a candidate for future fracking.
The North Makeevskoye Exploration Licence has a five year term effective from 29 December 2010.