Kulczyk Oil Ventures Inc.

Kulczyk Oil Ventures Inc.

May 03, 2010 03:00 ET

Kulczyk Oil Ventures Inc.: First Brunei Well Commences Drilling

CALGARY, ALBERTA--(Marketwire - May 3, 2010) -


Kulczyk Oil Ventures Inc. ("KOV" or the "Company") is pleased to advise that the onshore exploration well, Lukut-1 in Block L, Brunei Darussalam has commenced drilling. The Lukut-1 well is part of the first phase of an exploration program on Brunei Block L and will be the first well to be drilled onshore in Brunei for more than 20 years. 

The Lukut-1 well is designed to test the hydrocarbon potential of a structural feature defined by 3D seismic to a total well depth of 2,125 metres. The well is being drilled using Nabors Drilling Rig 503 and is anticipated to take up to 31 days to complete.

Tim Elliott, Chief Executive Officer of KOV commented that "while the spud of Lukut-1 is an exciting event for our company and an important step in the exploration of onshore Brunei it should be noted that, for KOV and for Brunei, it is the first well in a program of at least 4 wells to be drilled this year. Two will be drilled on Block L and two on Block M and all four will evaluate prospects defined by newly acquired 3D seismic."

In the event that hydrocarbons are discovered the well will be suspended and another rig may then be commissioned and moved on site for well testing. Subject to any discoveries, the well may then be retained as potential producer. Once the Nabors Drilling Rig has completed operations on the Lukut-1 well, it will be transported to the second well location for the commencement of the drilling of the Lempuyang-1 onshore exploration well.

Brunei - Block L

Brunei is one of Asia's most prospective hydrocarbon regions and is currently Asia's third largest oil and gas producer. Kulczyk Oil Brunei Limited, an indirect wholly-owned subsidiary of KOV has a 40% interest in Block L in Brunei. Block L covers an area of approximately 2,200 square kilometres and is mainly onshore. The billion barrel (Source: website of Brunei Shell Petroleum) Seria oil and gas field is located approximately 20 kilometres from the boundary of Block L. Additionally, a large gas field (Bubut) was recently discovered by Brunei Shell Petroleum on an adjoining block near the boundary of Block L. 

Kulczyk Oil is an international upstream oil and gas exploration company with principal interests in Brunei (Block L and Block M) and Syria. Kulczyk Oil is reviewing new growth opportunities within Central and Eastern Europe as well as in other prolific hydrocarbon basins and has agreed to purchase an interest in a portfolio of producing gas fields in the Ukraine after the closing of the IPO. The main shareholder of the Company, holding approximately 41.5% of the issued common shares as of the date of this news release, is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.

For further information, please refer to the Kulczyk Oil website (www.kulczykoilventures.com).

Translation: This news release is officially released in English.

Disclaimer: Neither this news release nor any copy of it may be taken or transmitted into the United States of America, Australia or Japan. This news release does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and distribution of this news release and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement is provided for information purposes only and does not constitute an offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of Kulczyk Oil. All material information about Kulczyk Oil and the shares to be offered in a public offering in Poland and admitted to trading on a regulated market in Poland are included in the prospectus approved by the Polish Financial Supervision Authority on April 13, 2010 (and any subsequent amendments thereto) which is the sole legally binding document containing such information. An investment decision regarding the publicly offered securities of Kulczyk Oil should only be made on the basis of the prospectus. The prospectus is available on the website of Kulczyk Oil (www.kulczykoilventures.com) and Dom Maklerski BZ WBK S.A. (www.dmbzwbk.pl). This announcement is not a prospectus and investors should not subscribe for or purchase any shares referred to in this announcement or take any investment decision in relation to the IPO except on the basis of information contained, or incorporated by reference, in the prospectus. This announcement is not and does not constitute or form part of any offer to sell or issue, or any solicitation of any offer to acquire, any shares or securities by any person in any jurisdiction in which such an offer or solicitation is unlawful.

This announcement and the information contained herein do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The shares referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offer in the United States of the shares referred to herein.

This announcement and the information contained herein do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in Australia, Japan or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction, and no public offer of rights or shares will be made in such jurisdictions. The shares referred to herein have not been and will not be registered under the securities laws of such jurisdictions and may not be offered, sold, resold, transferred or delivered, directly or indirectly, within such jurisdictions except pursuant to an exemption from and in compliance with any applicable securities laws.

The distribution of this announcement and/or the prospectus (when available) and/or the transfer of the shares referred to herein into jurisdictions other than Poland may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

HSBC, Dom Maklerski BZ WBK S.A., Erste Group Bank AG, Erste Securities Polska S.A. and Lazard & Co. Limited are each acting exclusively for the Company and no one else in connection with the IPO and each of them will not regard any other person as its client in relation to the IPO and will not be responsible to anyone other than the Company for providing the protections afforded to clients or for providing advice in relation to the IPO and/or matters referred to in this announcement.

Apart from the responsibilities and liabilities, if any, which may be imposed on HSBC by or under the United Kingdom's Financial Services and Markets Act 2000, HSBC, Dom Maklerski BZ WBK S.A., Erste Group Bank AG, Erste Securities Polska S.A. and Lazard & Co. accept no responsibility whatsoever and make no representation or warranty, express or implied, for or in respect of the contents of this announcement, including its accuracy, completeness or verification. HSBC, Dom Maklerski BZ WBK S.A., Erste Group Bank AG, Erste Securities Polska S.A. and Lazard & Co. accordingly disclaim any and all responsibility and liability whether arising in tort, contract or otherwise in connection with this announcement.

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (iii) high net worth companies and other persons to whom it may lawfully be committed falling within article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

In any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive"), this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.

Forward-looking Statements: Some of the statements contained in this release may be forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning new drilling and project development and capital projects in Brunei statements relating to the continued advancement of the Company's projects (including the closing of the acquisition of the gas producing assets in the Ukraine), statements as to the completion and timing of an initial public offering and listing on the Warsaw Stock Exchange and other statements that are not historical facts. When used in this document, and in other published information of the Company, the words such as "will", "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, the 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 cause actual results to differ materially from those contemplated by these forward-looking statements, include the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir that may negatively impact levels of oil and gas production, changes in product prices, failure to obtain regulatory approvals or satisfy conditions for the Ukrainian acquisition or the IPO and WSE listing, failure to raise sufficient capital to fulfill its capital commitments or drilling plans and other risks not anticipated by the Company or disclosed in the Company's published material. Market conditions may impact when and if the IPO and the WSE listing are completed. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. The Company and HSBC undertake 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.

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