Kulczyk Oil Ventures Inc.: Ukraine-M-21 Tests 3 MMcf/d, 4 Potential Hydrocarbon Zones Identified In NM-1 Well & Activity Update

CALGARY, ALBERTA--(Marketwire - June 19, 2012) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV), an international upstream oil and gas exploration and production company, is continuing its active program in Ukraine and is pleased to provide update information with respect to its activities in the Makeevskoye, North Makeevskoye and Olgovskoye Licence areas, each of which are operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which KOV has a 70% effective ownership interest.

Highlights:

• M-21 well tested natural gas at a rate of 3 MMcf/d;
  
  
• NM-1 drilled to a depth of 2,500 metres and cased to TD after log and drilling information indicate 4 potential hydrocarbon-bearing zones;
  
  
• North Makeevskoye 3D seismic survey acquires 225 square kilometres of new data - processing underway with interpretation to be completed by September;
  
  
• O-14 well suspended and being evaluated as a potential candidate for fracture stimulation.
  
  

Makeevskoye-21 Testing

The Makeevskoye-21 ("M-21") well was drilled to a total depth ("TD") of 2,210 metres in the first quarter of 2012. Two potential hydrocarbon-bearing zones were identified and the well was cased to TD to enable future testing. The first zone, the R8 zone which correlates with the gas producing zone in the M-19 well, has been perforated and flowed natural gas at a test rate of 3 million cubic feet per day ("MMcf/d") (2.1 MMcf/d net to the 70% interest of KOV) on an 8 millimetre choke. The well is expected to be tied-in for commercial production late in Q3 2012. As a result of the successful testing of the M-21 well and the consistently high production rate from the Makeevskoye-19 ("M-19") well, the drilling program for 2012 is being revised to bring forward the timing for the drilling of the Makeevskoye-20 ("M-20") well.

North Makeevskoye Exploration Well

The North Makeevskoye-1 ("NM-1") exploration well, which commenced drilling on 5 May 2012, has been drilled to its planned TD of 2,500 metres, wireline logged and cased to TD. Evaluation of both the wireline logs and information obtained during the drilling of the well indicates potential for hydrocarbon accumulation in 4 reservoir units in Bashkirian and Serpukovian aged sediments. Two reservoir units are within a 70 metre thick limestone interval and another appears to be within a 30 metre thick sandstone. Production testing of the NM-1 well is expected to take place early in Q3 2012. The drilling rig will start moving to the M-20 location shortly and the M-20 well is expected to spud in mid-July.

North Makeevskoye Seismic

During the second quarter of 2011, KUB-Gas acquired 71 kilometres of new 2D seismic data over the North Makeevskoye Licence. Interpretation of this new data in combination with approximately 275 kilometres of pre-existing 2D seismic data resulted in NM-1 being defined as the first drilling location on this new licence. In the first quarter of this year 225 km² of new 3D seismic data was acquired over the majority of the North Makeevskoye Licence, including the NM-1 well location. Processing of the recently acquired 3D seismic data is currently underway and interpretation is expected to be completed in Q3 2012.

Olgovskoye-14

The Olgovskoye-14 ("O-14") well was drilled to a TD of 2,800 metres in June and July of 2011 and cased to TD pending further evaluation. Potential hydrocarbon-bearing zones were identified from wireline logging and drilling information. Recent testing of the well indicated low permeability in the reservoir target zones and the well is currently suspended as a potential candidate for fracture stimulation later in 2012. In its initial frac program in the fourth quarter of 2011, KUB-Gas successfully completed the fracture stimulation of two wells, Olgovskoye-6 ("O-6") and Olgovskoye-8 ("O-8"). After being frac'd the O-6 well flowed gas at a rate of 2.3 MMcf/d and the O-8 well flowed gas at a rate of 1.0 MMcf/d, both from previously non-commercial zones.

About Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Ukraine, Brunei and Syria and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine. The common shares of the Company trade on the Warsaw Stock Exchange under trading symbol "KOV".

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

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 90% working interest in Block L, a 1,123 square kilometre area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 1,505 square kilometre area onshore in southern Brunei.

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 the satisfaction of certain conditions, to produce oil and gas from Block 9, a 10,032 square kilometre 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 44% 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.kulczykoil.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 of KUB-Gas and related to its five licence areas (Vergunskoye, Krutogorovskoye, Makeevskoye, North Makeevskoye and Olgovskoye) in Ukraine and to certain wells drilled within those licence areas 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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