Kulczyk Oil Ventures Inc.: Ukraine- Olgovskoye-18 Well Spuds

CALGARY, ALBERTA--(Marketwire - Oct. 7, 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-18 ("O-18") well in Ukraine commenced drilling on 6 October 2011. The well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.

Olgovskoye-18 Exploration Well

The O-18 well, with a planned total depth ("TD") of 2,300 metres, will test gas-bearing reservoirs of Muscovian age to further develop the gas production capability of the Olgovskoye Field. The drilling of the O-18 well is expected to take 35 days.

Olgovskoye License

The O-18 well is the fifth new well drilled on the Olgovskoye License since the Company acquired its interest in KUB-Gas in June 2010. It is part of a larger development program on the KUB-Gas assets through 2011 and 2012 which has involved the drilling of new wells at O-8, O-9, O-12 and O-14. The O-9 well recently commenced commercial production at a rate of approximately 2 million cubic feet per day ("MMcf/d"), resulting in an increase in total production from the Ukrainian assets to more than 12 MMcf/d (8.4 MMcf/d net to KOV) as disclosed in the KOV news release dated 30 September 2011. The O-12 well was recently production tested at a maximum rate of 8.1 MMcf/d and is expected to be tied-in for commercial production later in Q4 2011 as disclosed in a KOV news release dated 4 October 2011. The Olgovskoye Field currently produces from 5 wells (O-3, O-4, O-5, O-7 and O-9) with each well producing from a separate horizon.

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

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 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.