Kulczyk Oil Ventures Inc.: Ukraine - Olgovskoye-12 Tests Gas At 8.1 MMcf/d

CALGARY, ALBERTA--(Marketwire - Oct. 4, 2011) - 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 Olgovskoye-12 ("O-12") well has been production tested at a maximum rate of 8.1 million cubic feet per day ("MMcf/d"). The well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest. It is expected to be tied-in for commercial production later in Q4 2011.

Highlights

• O-12 well tests gas at 8.1 MMcf/d (5.7 MMcf/d net to KOV);
• O-12 well to be tied-in for commercial production prior to year end;
• Seismic defines additional drilling opportunities in the Olgovskoye, Makeevskoye, and North Makeevskoye license areas.

Olgovskoye-12

The O-12 well reached a total depth ("TD") of 2,700 metres in early September 2011 and cased to TD as a potential gas producer. The well was designed to test gas-bearing reservoirs in the Muscovian and Bashkirian sections and to further develop the gas production capability of the Olgovskoye Field. Interpretation of wireline logs indicated between 21 and 39 metres of potential gas pay in 8 potential zones.. A 10 metre zone in the Middle Bashkirian was perforated and production tested at a maximum rate of 8.1 MMcf/d on a 10 mm choke.

The location for the O-12 well was identified after interpretation of 2D seismic data by the KOV/KUB-Gas technical team. It is on trend with the main Olgovskoye producing area and appears to extend the known boundaries of the Olgovskoye Field. The O-12 well is expected to be tied-in for commercial production later in Q4 2011 after a pipeline has been constructed and the necessary production permits have been received.

Seismic & Drilling Programs

A 3D seismic program covering approximately 180 km² over the Olgovskoye and Makeevskoye license areas finished field operations in June 2011. Processing and interpretation of the acquired data completed during the third quarter defined a number of potential locations for further development on both licenses. Most notably, it illustrated a potential areal extent of approximately 6 km² for the new gas zone discovered by the M-19 well and defined two new locations, one at Makeevskoye-21 ("M-21") to further develop the gas zone discovered by the M-19 well, and a second at Makeevskoye-16 ("M-16"), for further development of gas production from elsewhere on the Makeevskoye license. The M-19 well commenced production in July 2011 at an initial rate of more than 5 MMcf/d as disclosed in the KOV press release of 26 July 2011 and was producing 4.8 MMcf/d as of 30 September 2011.

During the second quarter, KUB-Gas acquired 71 kilometres of new 2D seismic data over the North Makeevskoye license. Interpretation of this new data and interpretation of approximately 275 kilometres of pre-existing 2D seismic data has defined North Makeevskoye-1 ("NM-1") as the first drilling location on this new license.

KUB-Gas will continue to develop additional gas production with an active drilling program. The drilling rig has been moved to the Olgovskoye-18 ("O-18") location and the O-18 well, with a planned TD of 2,300 metres, will commence drilling in the next few days. Following the drilling of O-18, KUB-Gas plans to drill the NM-1, M-21, M-16 and Krutogorovskoye-5 wells during the balance of Q4 2011 and into Q1 2012.

KUB-Gas owns a 100% interest in the Olgovskoye, Makeevskoye, North Makeevskoye, Krutogorovskoye and Vergunskoye licenses in the Lugansk area of Ukraine.

Tim Elliott, President and Chief Executive Officer of KOV commented:

"The results of the O-12 well, together with the substantial increases in gas production during the past 15 months, confirm the potential of our Ukrainian assets. KUB-Gas is proving to be an excellent investment for our Company and we are pleased that the potential for growth in reserves and production, first identified by the Company prior to the acquisition in June 2010, is being realized."

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 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 fulfillment 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% in 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 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.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 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.