Kulczyk Oil Ventures Inc.: Nigeria OML 42 -Update

CALGARY, ALBERTA--(Marketwire - Oct. 27, 2011) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV), an international upstream oil and gas company, announces that Neconde Energy Limited ("Neconde") has signed an agreement providing that the timeframe for closing the proposed acquisition by Neconde of oil and gas assets in Nigeria, announced by KOV in a news release dated 6 May 2011, has been extended until 14 November 2011 and that the bridge financing arrangement between KOV and its major shareholder has been extended to provide the Company sufficient time for closing of the transaction and securing financing.

On 6 May 2011 the Company announced that it had joined the Neconde consortium as a 20% shareholder and that Neconde had entered into various agreements on 29 April 2011 with Shell Petroleum Development Company of Nigeria Ltd, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited (together, the "Sellers"), to acquire (the "Transaction"), the Sellers' cumulative 45% participating interest in Oil Mining License 42 ("OML 42"). OML 42 is a large license containing previously-discovered oil fields in the Niger Delta area of onshore Nigeria. The remaining 55% participating interest in OML 42 is currently held by the Nigerian National Petroleum Company ("NNPC").

In order to facilitate the participation of KOV in the Neconde consortium, Kulczyk Investments SA ("KI"), the major shareholder of the Company, provided bridge financing in respect of the Company's share of Neconde's acquisition costs of OML 42. KI and the Company agreed that until such time as the Company raises funds to repay KI, the shares of Neconde allocated to KOV would be held in trust by KI. They further agreed, in anticipation that the acquisition would have closed prior to the end of October 2011, that if the Company had not raised funds to repay KI for its bridge financing prior to 31 October 2011 the trust arrangement between KI and the Company would terminate and KI would become fully entitled (legally and beneficially) to the Company's shares in Neconde. An agreement in principle has been reached between the Company and KI to provide for an extension of that bridge financing to accommodate the extension agreed to between Neconde and the Sellers in relation to closing the Transaction.

Under the terms of the agreements between the Sellers and Neconde entered into on 29 April 2011, Neconde had up to 180 days to complete the acquisition. The Sellers have agreed to extend the time for completion of the Transaction in the manner described above.

Assets of 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

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 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 OML 42 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.