Kulczyk Oil Ventures Inc.: Ukraine- Olgovskoye-18 Tests Gas at 1.187 MMcf/d

CALGARY, ALBERTA--(Marketwire - Dec. 13, 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 testing of one of the indicated gas zones in the Olgovskoye-18 ("O-18") well in Ukraine has yielded a maximum rate of 1.187 million cubic feet per day ("MMcf/d") of natural gas through a 5 mm choke. 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 in the first quarter of 2012.

Olgovskoye-18

The O-18 well reached a planned depth of 2,300 metres on 4 November 2011. Following analysis of data gathered during drilling it was decided to deepen the well to total depth ("TD") of 2,650 metres, after which the well was cased to TD as a potential gas producer. The well was designed to test gas-bearing reservoirs of Muscovian and Bashkirian age and to further develop the gas production capability of the Olgovskoye Field. Interpretation of wireline logs indicated up to 38.5 metres of gas pay in 7 zones and one of these, the R22 zone, was selected for testing. The R22 zone, which had not previously been production in the Olgovskoye license area, was perforated from 2,035.7 to 2,058.7 metres and flowed for a period of 12 hours prior to being shut-in for pressure build-up.

Jock Graham, KOV Executive Vice President, commented: "O-18 has been another success for the Company in Ukraine. We continue to be pleased with our operational and technical achievements in that country. We are drilling quicker, safer and more efficiently and our production level has increased more rapidly than we anticipated when we acquired our 70% interest in KUB-Gas in June 2010. The Ukraine assets continue to exceed our expectations and, in addition, we have several high impact wells coming up, including the M-21 well, which could make a material difference to the scale of the upside."

Average gross production during the month of November 2011 from the KUB-Gas properties was 11.8 MMcf/d of natural gas (8.3 MMcf/d net to KOV) and 119 barrels per day of condensate. Additional producible volumes have already been tested after the recent fracture stimulation of the O-6 and O-8 wells and the testing of the O-12 gas discovery well. These wells, which tested an aggregate maximum rate of 11.4 MMcf/d of gas, are expected to commence regular production at different times over the next 3 months. Good production practice dictates that the wells are produced at lower rates to avoid damage to the reservoir and, accordingly, the O-6, O-8 and O-12 wells are expected to add cumulative new production volumes of between 5 and 8 MMcf/d (3.5 to 5.6 MMcf/d net to KOV) when they are tied-in.

The drilling rig is being moved to a new location at Makeevskoye-21 ("M-21") which has a planned TD of 2,176 metres. The M-21 well is located approximately 900 metres northwest of the M-19 gas discovery well which commenced production in late July 2011 at a rate of 5.5 MMcf/d. It is expected to spud in the second half of December and to reach TD approximately 30 days after the spud date.

About 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 addition, KOV has an option to participate for a 9% net indirect working interest in OML 42 in Nigeria. The common shares of the Company trade on the Warsaw Stock Exchange under trading symbol "KOV".

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 1,110 square kilometre (275,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 1,505 square kilometre (372,000 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 the satisfaction 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

In Nigeria, KOV has an option until 31 March 2012 to participate for a 9% net indirect interest in OML 42, an 814 km² license area in the Niger Delta with oil production and shut-in oil and gas producing capability.

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 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.