Kulczyk Oil Ventures Inc.

Kulczyk Oil Ventures Inc.

June 09, 2009 17:15 ET

Kulczyk Oil Ventures Inc.: Operations and Corporate Update

CALGARY, ALBERTA--(Marketwire - June 9, 2009) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil" or the "Company") is pleased to provide an operations and corporate update.

Brunei

Kulczyk Oil, through a wholly-owned subsidiary, owns a 40% interest in a Production Sharing Agreement ("PSA") which gives it the right to explore for and produce oil and gas from Block L, a 2,200 square kilometre (550,000 acre) exploration and development area covering onshore and offshore areas in the northeastern portion of the Sultanate of Brunei Darussalam ("Brunei"). The offshore component is in relatively shallow waters, and includes a seven kilometre wide strip along the northwest coast and essentially all of Brunei Bay to the east. The giant Seria oil field, which has produced in excess of 1 billion barrels of oil, lies approximately 12 kilometres to the southwest of Block L. A significant gas discovery at Bubut, announced by Brunei Shell Petroleum, lies less than one kilometre from the edge of Block L in the shallow offshore region.

A 350 square kilometre 3D seismic acquisition program, which will assist with the evaluation of the potential of the southwestern portion of the block nearest to the Seria field, was completed on May 8, 2009. The initial results from the processing of the field data indicate excellent quality data have been obtained. Interpretation of these data will be ongoing as processed information is received over the next several months. Under the terms of the PSA, Kulczyk Oil and its partners are committed to the drilling of two wells on Block L. A decision on drilling locations is expected in September followed by drilling of the first exploration well by Kulczyk Oil et al which currently is scheduled for December 2009.

Syria

Through a wholly-owned subsidiary, Kulczyk Oil owns a 100% interest in a Contract for the Exploration, Development, and Production of Petroleum ("PSC") between the Government of the Syrian Arab Republic, Syrian Petroleum Company ("SPC") and the Company which became effective on November 29, 2007. This agreement gives Kulczyk Oil the right to explore for and produce oil and gas from Block 9, a 10,040 square kilometre block in northwestern Syria. Under the terms of the PSC, the Company is committed to acquire 600 kilometres of new 2D seismic data, or a comparably-priced 3D program, and drill two wells during the first four year exploration period.

Kulczyk Oil reprocessed approximately 1,800 kilometres of previously-shot 2D seismic data in late 2008 and the interpretation of these data, which is essentially completed, indicates a number of potential drilling targets in the southeastern corner of the block, the area that had been considered the primary area of focus on Block 9 by the Kulczyk Oil management team.

Kulczyk Oil is currently in the process of converting the 2D seismic acquisition portion of its work obligation into a comparably-priced 3D seismic program. A letter advising SPC of the intention of the Company to acquire 350 square kilometres of 3D seismic in place of the 600 km 2D seismic commitment was sent to SPC during the first week of May.

Planning for the acquisition of a 3D seismic program is in its initial stages and an environmental impact assessment, required under the terms of the PSC, has been initiated. Work on the invitation to tender has also commenced with the current target timing for the shooting of the new seismic program being the first quarter of 2010.

Warsaw Stock Exchange Listing

Kulczyk Oil finalized a plan of arrangement under Canadian securities laws in mid-December, 2008 under which it: a) changed its name from Loon Energy Inc.; b) de-listed its shares from the TSX Venture Exchange in Canada; and c) announced its intention to list its shares for trading on the Warsaw Stock Exchange ("WSE") with a target date for listing in the second quarter of 2009. A news release on February 11, 2009 advised the market that it had entered into agreements with Bank Zachodni WBK S.A. and Dom Maklerski BZ WBK S.A. who would assist the Company in raising funds for the initial public offering ("IPO") of Kulczyk Oil on the WSE and further advised that it considered it likely that the listing and IPO would occur during the fourth quarter of 2009. The target date for listing and IPO continues to be late November or early December 2009.

Kulczyk Oil is an international upstream oil and gas exploration and production company with principal interests in Brunei and Syria. Kulczyk Oil is reviewing new growth opportunities within Central and Eastern Europe as well as in other prolific hydrocarbon basins. The difficult current market environment is creating unique investment opportunities internationally, which until recently were overvalued or inaccessible. The main shareholder of the Company, holding approximately 68% of the currently issued Common Shares, is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.

Some of the statements contained in this release may be forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, the 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, which could cause actual results to differ from these forward-looking statements, include the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices 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.

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