Kulczyk Oil Ventures Inc.
WARSAW : KOV

Kulczyk Oil Ventures Inc.

December 02, 2010 10:46 ET

Kulczyk Oil Announces Testing Plans and Updates Brunei Activity

CALGARY, ALBERTA--(Marketwire - Dec. 2, 2010) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil" or "KOV") is pleased to announce that the Brunei Block L Joint Venture will shortly commence a testing program at the Lempuyang-1 and Lukut-1 wells, following encouraging indications during the drilling and from the interpretation of wireline logs from both wells. In addition, KOV announces the completion of both the Block L gravity survey and a large 3D seismic survey in Block M.

Block L Testing Program

Testing of the Lempuyang-1 well is expected to commence in January 2011 and will be followed by the testing of the Lukut-1 well. The testing program is designed to test two of three potential intervals in the Lempuyang-1 well, with an aggregate thickness of 56.4 metres and three of ten potential intervals in the Lukut-1 well, with an aggregate thickness of 155 metres. It may take approximately 14 days to evaluate each of the test intervals. Key components for testing, including the rig and the test equipment, have been secured. 

The Lukut-1 well was drilled on Brunei Block L and suspended in mid-June pending testing by a service rig. The second Block L well, Lempuyang-1, commenced drilling operations on July 15 and was cased to total depth in early October and suspended pending testing.

Block L Airborne Gravity Survey

An airborne gravity survey covering approximately 3,000 km2, including all of Block L, has been completed and interpretation is ongoing.

Kulczyk Oil Brunei Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 40% interest in Block L.

Block M 3D Seismic Program

The Belait North 3D seismic survey covers approximately 136 km2 3D seismic survey. Field operations commenced on 3 July 2010 and data recording was completed on 20 November 2010. Restoration work and demobilization operations will continue until early December. During peak operations in October more than 1,200 people were employed on the project. The project has been completed within budget and slightly ahead of schedule. The survey area covers the northern extension of the prospective trend covered by the 118 km2 2009 Belait 3D seismic survey. The combined 3D seismic coverage of 255 km2 covers approximately two-thirds of the Belait anticlinal trend, the major structural feature on Block M. Processing of the 3D seismic data is underway and early products are expected in March 2011. This will be followed by interpretation and mapping of the data to delineate prospects for potential drilling in 2011/2012.

KOV Borneo Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, has a 36% interest in Block M.

Assets of Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration 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.

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 40% working interest in Block L,,a 2,220 square kilometre (550,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 3,011 square kilometre (744,000 acre) area onshore in southern Brunei.

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

In Syria, KOV holds a participating interest of 100% in the Syria Block 9 production sharing contract which provides the right to explore for and, upon fulfillment 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 agreements to assign an aggregate of 55% in ownership interests to third parties which are 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., increased its holdings in the Company through participation in the initial public offering of the Company on the Warsaw Stock Exchange in May 2010 and the conversion of a debenture and owns almost 50% of the issued common shares. Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.

For further information, please refer to the Kulczyk Oil website (www.kulczykoilventures.com) or contact the persons listed below.

Translation: This news release has been translated into Polish from the English original.

Forward-looking Statements This release contains forward-looking statements made as of the date of this announcement with respect to future activities and general exploration activities in Brunei 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 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.

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