Kulczyk Oil Ventures Inc.: Ukraine-Makeevskoye-20 Well Cased As Gas Well

CALGARY, ALBERTA--(Marketwire - Aug. 6, 2012) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil", "KOV" or the "Company"), an international upstream oil and gas company, is pleased to report that the Makeevskoye-20 ("M-20") well in Ukraine has been cased to total depth ("TD") as a gas well. The well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.

Makeevskoye-20

The M-20 well was drilled to a TD of 2,000 metres and cased to TD pending completion of the well for commercial gas production. The primary objective of the well was to evaluate the potential of the R8 zone at a depth of approximately 1,450 metres and further develop the Makeevskoye R8 Pool which was originally discovered by the Makeevskoye-19 ("M-19") well drilled in the second half of 2010 and further developed by the Makeevskoye-21 ("M-21") during the second quarter of 2012. The top of the R8 zone in the M-20 well is approximately 20 metres higher than in the M-19 well and 36 metres higher than in the M-21 well. A significant increase in gas in the drilling mud was noted when the R8 zone was penetrated during the drilling operation. Wireline logs indicate that the zone is 18.5 metres thick, has an average porosity of more than 25% and appears to be completely gas charged.

The M-19 well, located 1 kilometre to the west of the M-20 location, commenced production from the R8 zone in July 2011 at an initial rate in excess of 5.5 million cubic feet per day ("MMcf/d") (3.85 MMcf/d net to KOV). The M-21 well, located approximately 2 kilometres west of the M-20 location was tied-in for commercial production at the start of August at a rate of 1.7 MMcf/d (1.2 MMcf/d net to KOV). The KUB-Gas owned and operated drilling rig which drilled the M-20 well is scheduled to move to the Krutogorovskoye-7 ("K-7") location near to the City of Lugansk in late August. The K-7 well will be drilled to a TD of 3,058 metres to evaluate the potential of Moscovian and Bashkirian zones in a new structure defined by seismic.

Jock Graham, Executive Vice President of KOV, stated: "We are pleased to be able to accelerate gas production from the Makeevskoye licence by continuing to develop the R8 Pool. The M-20 well has defined a gas column of more than 36 metres for this pool. It is the third well in the pool and, once tied-in as a gas producing well later this year, contributions from M-20 will further increase the Company's production and revenue from Ukraine."

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 may contain forward-looking statements made as of the date of this announcement with respect to future activities of KUB-Gas and related to its five license areas in Ukraine and to certain wells drilled or seismic activities undertaken within those license areas that either are not or may not be 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.