3P International Energy Corp.

3P International Energy Corp.

December 13, 2011 12:16 ET

KUB-Gas' Olgovskoye-18 Tests Gas at 1.187 MMCF/D

TORONTO, ONTARIO--(Marketwire - Dec. 13, 2011) - 3P International Energy Corp. ("3P", or the "Company") (TSX VENTURE:DOH), an international upstream oil and gas company, is pleased to refer to reported testing of one of the indicated gas zones in the Olgovskoye-18 ("O-18") well in Ukraine which has yielded a maximum rate of 1.187 million cubic feet per day ("MMcf/d") of natural gas through a 5 mm choke (the "0-18 Test Results"). The 0-18 Test Results were reported by Kulczyk Oil Ventures Inc. ("Kulczyk"), holder of a 70% effective ownership of KUB-Gas LLC ("KUB-Gas"), the owner and operator of the 0-18 well. As announced in the Company's news release of November 3, 2011, 3P has entered into a letter of intent to acquire KUB-Gas' 30% owner, Gastek LLC ("Gastek") (the "Gastek Acquisition"). 3P expects to complete the Gastek Acquisition in February, 2012, subject to shareholder and regulatory approval (including approval of the TSX Venture Exchange), and to entering into a definitive agreement with Gastek and the current owners of Gastek.


The O-18 well reached a planned depth of 2,300 metres on 4 November 2011. Following analysis of data gathered during drilling it was decided to deepen the well to total depth ("TD") of 2,650 metres, after which the well was cased to TD as a potential gas producer. The well was designed to test gas-bearing reservoirs of Muscovian and Bashkirian age and to further develop the gas production capability of the Olgovskoye Field. Interpretation of wireline logs indicated up to 38.5 metres of gas pay in 7 zones and one of these, the R22 zone, was selected for testing. The R22 zone, which had not previously been production in the Olgovskoye license area, was perforated from 2,035.7 to 2,058.7 metres and flowed for a period of 12 hours prior to being shut-in for pressure build-up.

Jock Graham, Executive Vice President of Kulczyk, commented: "O-18 has been another success for Kulczyk in Ukraine. We continue to be pleased with our operational and technical achievements in that country. We are drilling quicker, safer and more efficiently and our production level has increased more rapidly than we anticipated. The Ukraine assets continue to exceed our expectations and, in addition, we have several high impact wells coming up, including the M-21 well, which could make a material difference to the scale of the upside."

Kulczyk reported that average gross production during the month of November 2011 from the KUB-Gas properties was 11.8 MMcf/d of natural gas (3.5 MMcf/d net to Gastek) and 119 barrels per day of condensate. Additional producible volumes were also reported to have already been tested after the recent fracture stimulation of the O-6 and O-8 wells and the testing of the O-12 gas discovery well. Kulczyk expects these wells, which tested an aggregate maximum rate of 11.4 MMcf/d of gas, to commence regular production at different times over the next 3 months. Good production practice dictates that the wells are produced at lower rates to avoid damage to the reservoir and, accordingly, Kulczyk expects the O-6, O-8 and O-12 wells to add cumulative new production volumes of between 5 and 8 MMcf/d (1 to 2.4 MMcf/d net to Gastek) when they are tied-in.

Kulczyk reports that the drilling rig is being moved to a new location at Makeevskoye-21 ("M-21") which has a planned TD of 2,176 metres. The M-21 well is located approximately 900 metres northwest of the M-19 gas discovery well which commenced production in late July 2011 at a rate of 5.5 MMcf/d. It is expected to spud in the second half of December and to reach TD approximately 30 days after the spud date.

About 3P International Energy Corp.

3P International Energy Corp. is a Canadian-based company focused on the exploration and development of oil and gas reserves in Eastern Europe. In the Transcarpathian basin of Ukraine, 3P is the 100% owner and operator of a 20-year production licence with a gas producing asset, as well as three exploration licences with exploration targets and a further development opportunity on a total of 300 square kilometres. The Corporation's strategy is to use proven technology, capital, and expertise to grow the reserves base and build a portfolio of low cost gas production assets in Eastern Europe to capitalize on high regional gas prices. 3P shares are traded on the TSX Venture Exchange under the stock symbol DOH.

Reader Advisory

Information contained herein related to the licenses of KUB-Gas is taken from the press release of Kulczyk's press release dated December 13, 2011, and such information has not been independently verified by 3P, and 3P makes no representation or warranty with respect to the accuracy of such information.

Completion of the Gastek Acquisition is subject to a number of conditions, including but not limited to TSX-V acceptance and shareholder approval. The Gastek Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Gastek Acquisition will be completed as proposed or at all.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to, the entering into of the Gastek Acquisition and statements with respect to future activities of KUB-Gas and related to its five license areas in Ukraine and to certain wells drilled or seismic activities undertaken within those license areas that either are not or may not be historical facts. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in the Ukraine and globally; industry conditions, including fluctuations in the prices of natural gas; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • 3P International Energy Corp.
    Mas Kobuchi
    (604) 618-1768