|By Marketwired .||
|November 6, 2012 06:40 AM EST||
CALGARY, ALBERTA -- (Marketwire) -- 11/06/12 -- Kulczyk Oil Ventures (WARSAW:KOV), an international upstream oil and gas exploration and production company, is pleased to announce the following information with respect to its drilling program in Ukraine:
-- the Krutogorovskoye-7 ("K-7") well reached its total depth ("TD") of 3,206 metres and wireline logs indicate up to 5 potential gas-bearing zones; -- the K-200 drilling rig will be moved from K-7 to the North Makeevskoye-2 ("NM-2") location and the NM-2 well is expected to commence drilling in early December.
The K-7 well is operated by KUB-Gas, a subsidiary in which KOV has a 70% effective ownership interest.
The K-7 well was drilled to a TD of 3,206 metres. Wireline logging of the well has indicated up to 5 potential gas zones in the Bashkirian and Serpukhovian between depths of approximately 2,390 metres and 2,760 metres.
The K-7 well evaluated the potential of a structure defined by 2D seismic and targeted reservoirs of Moscovian, Bashkirian and Serpukhovian age. Completion operations are expected to occur early in the first quarter of 2013 and the well is expected to be on production in the second quarter of 2013.
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.
The NM-2 is expected to commence drilling in early December after the K-200 drilling rig, which drilled the K-7 well, has been moved to the NM-2 location and rigged up. The planned TD for the NM-2 well is 3,150 metres. NM-2 is being drilled to evaluate multiple potential gas zones in the Moscovian, Bashkirian and Serpukhovian sections and is expected to take approximately 45 days to reach TD.
Jock Graham, Executive Vice President of KOV, says "we continue to have an active operation in Ukraine with two rigs working concurrently. It is encouraging to see the positive logging results from the K-7 well and, if testing confirms the positive log data, it will be a new discovery for the company. Meanwhile, we are also looking forward to the results from the other well we are currently drilling, Makeevskoye-16, which is also an exploration well. Like any area of operation, exploration success is critical to building on a reserve and production base and Ukraine is no exception. So far we have had great results in Ukraine and we have plans for further growth in this regard."
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 Kulczyk.
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.
Canada Suite 1170, 700-4th Avenue S.W., Calgary, Alberta, Canada Telephone: +1-403-264-8877 Facsimile: +1-403-264-8861 Dubai 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 Poland Nowogrodzka 18/29 00-511 Warsaw, Poland Telephone: +48 (22) 414 21 00 Facsimile: +48 (22) 412 48 60