Kulczyk Oil Ventures Inc.

Kulczyk Oil Ventures Inc.

October 07, 2010 01:20 ET

Kulczyk Oil Ventures Inc.: Brunei Block M Markisa-1 Intermediate Results

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil" or "KOV") provides the following information on the Markisa-1 exploration well in Block M, onshore Brunei Darussalam. The well has been drilled and logged to an intermediate depth of 987 metres which included two of the shallower well objectives. Preliminary interpretation of wireline, pressure and sampling data suggests that some good quality reservoir has been intersected. Although hydrocarbons were encountered in these zones the hydrocarbon saturation was low and both target objectives appear water wet.

Markisa-1 will be cased to the current depth of 987 metres. Drilling is expected to re-commence in approximately 4-5 days to test the deeper objectives and reach a programmed well depth of 1,335 metres.

Wireline logging has been completed and preliminary evaluation of this data indicates that while low hydrocarbon saturations were encountered in both of the shallow objectives both sands appear to be water wet. Sand quality was found to be better than expected. 

The partners in Brunei Block M and in the Markisa-1 well are KOV Borneo Limited (36%), Tap Energy (Borneo) Pty Ltd (39%), China Sino Oil Co. Ltd. (21%) and Jana Corporation Sdn Bhd (4%). KOV Borneo Limited is an indirect wholly-owned subsidiary of Kulczyk Oil. The Markisa-1 exploratory well is the second of a minimum of three wells to be drilled on Block M by Kulczyk Oil and its joint venture partners during the Phase 1 exploration period ending in August 2011. 

Kulczyk Oil also owns an interest in Block L, the other onshore exploration block in Brunei, through Kulczyk Oil Brunei Limited, an indirect wholly-owned subsidiary of Kulczyk Oil, which has a 40% interest in Block L and in each of the Lukut-1 and Lempuyang-1 wells. The first well, Lukut-1, was drilled on Brunei Block L and suspended in mid-June pending testing by a service rig. A second Block L well, Lempuyang-1, commenced drilling operations on July 15 and is currently logging. 

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 direct 75% interest in a production sharing agreement that gives it the right to explore for and produce oil and natural gas from Block 9, a 10,032 square kilometre area in northwest Syria. An agreement was announced on September 6, 2010 which will reduce the direct interest of KOV to 45% subject to fulfilment of certain conditions.

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).

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 on the Markisa-1 well, other wells in Brunei 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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