KOV Increases Interest in Block L, Brunei

CALGARY, ALBERTA--(Marketwire - Dec. 6, 2011) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil", "KOV" or the "Company"), an international upstream oil and gas company, announces that a wholly-owned subsidiary of KOV, Kulczyk Oil Ventures Limited ("KOVL"), has entered in to a sale and purchase agreement with the receiver manager of AED Oil Limited ("AED") under which KOVL has acquired all of the issued shares of AED Southeast Asia Limited ("AED SEA") for a nominal consideration and increased its total interest in Block L to 90%.

The sole asset of AED SEA is a 50% operated interest in a production sharing agreement ("Block L PSA") which gives it the right to explore for and, subject to the approval of a development plan, produce oil and natural gas from Block L in Brunei.

Block L is a 1,110 square kilometre (275,000 acre) exploration and development block covering certain onshore and offshore areas of Brunei. The size of Block L was recently reduced by 50% as part of the Phase 1 relinquishment process required under the terms of the Block L PSA. A 143 km² 3D seismic program is currently underway on Block L and two additional exploration wells will be drilled prior to the end of the Phase 2 exploration period of the Block L PSA.

Upon the closing of the acquisition of AED SEA, KOV will have a 90% interest in the Block L PSA with indirect wholly-owned subsidiary Kulczyk Oil Brunei Limited having a 40% interest and indirect wholly-owned subsidiary AED SEA (operator) having a 50% interest. The remaining 10% interest is owned by a private Brunei company at arm's length to KOV.

In addition to its interest in Block L, KOV owns a 36% interest in a production sharing agreement which gives it the right to explore for and, subject to the approval of a development plan, produce oil and natural gas from Block M in Brunei. Block M is a 1,505 square kilometre (372,000 acre) exploration and development block covering an onshore areas of Brunei to the south of Block L. The size of Block M was recently reduced by 50% as part of the Phase 1 relinquishment process required under the terms of the Block M production sharing agreement.

About Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Brunei, Syria and Ukraine 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 Brunei, KOV owns working interests in two production sharing agreements which gives the Company the right to explore for and produce oil and natural gas from Block L and Block M. KOV owns a 90% working interest in Block L, a 1,110 square kilometre (275,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 1,505 square kilometre (372,000 acre) area onshore in southern Brunei

In Ukraine, KOV owns an effective 70% interest in KUB-Gas LLC. The assets of KUB-Gas consist of 100% interests in five licenses near to the City of Lugansk in the northeast part of Ukraine. Four of the licenses are gas producing

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 fulfilment of certain conditions, to produce oil and gas from Block 9, a 10,032 square kilometre (2.48 million acre) 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

The main shareholder of the Company, Kulczyk Investments S.A. owns approximately 47.6% of the issued common shares. Kulczyk Investments S.A. is 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 the Company related to the acquisition of AED SEA, future activity on Brunei Block L and other statements that are not historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, any draft 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.