Kulczyk Oil Ventures Inc.: Ukraine- Olgovskoye-8 Encounters Multiple Gas Zones

CALGARY, ALBERTA--(Marketwire - Feb. 3, 2011) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil", "KOV" or the "Company") is pleased to announce the completion of drilling on the O-8 well in the Olgovskoye Field.

HIGHLIGHTS

• O-8 development well has reached total depth ("TD") of 2,780 metres;
• Wireline logging and evaluation identified up to 135 metres of gas pay across 35 reservoir zones;
• Testing program to commence in Q1 2011;
• Drilling rig moving to next location at O-9;

O-8 Development Well

The O-8 well is located in the southern part of the Olgovskoye Field approximately 2,100 metres to the southeast of the O-7 well which was recently put on production. The O-8 well commenced drilling on November 17^th and was designed to target the gas-bearing reservoirs of the Lower Bashkirian. The well reached a TD of 2,780 metres on January 3^rd. Wireline logging of the open hole identified, depending on the petrophysical cut-offs used, up to 135 metres of hydrocarbon-bearing pay over 35 reservoir intervals and the well was cased to TD in preparation for completion as a producing gas well. 

Olgovskoye Field

With the recent tie-in of the O-7 well, the Olgovskoye Field now produces from 4 wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon. The O-3 well produces from a Lower Muscovian horizon, the O-4 well produces from the Middle Bashkirian sands and the O-5 well produces from an Upper Muscovian horizon. The recently tied-in O-7 well produces from a Lower Bashkirian horizon.

Location of Next Well

The drilling rig is now being moved to the O-9 location which is located within the Olgovskoye license area approximately 1.2 kilometres to the northwest of the O-8 well. The O-9 well is designed to test gas-bearing reservoirs in the Lower Bashkirian and further develop the gas production capability of the Olgovskoye Field. It has a planned TD of 2,600 metres.

Commencement of 3D Seismic Acquisition

A 120 sq. km 3D seismic acquisition program commenced at the end of January. This program is designed to cover the entire Olgovskoye and Makeeyevskoye license areas. The acquisition should be complete by the beginning of the second quarter.

Progress with KUB-Gas Assets

Kulczyk Oil is very pleased with the results of work done on the KUB-Gas assets since the acquisition in June. KOV announced the results from the M-19 gas discovery in the Makeevskoye Field on January 10^th and the acquisition of an additional license at North Makeevskoye on January 13^th. The work program for 2011 will principally target a continuation of the comprehensive and efficient exploitation of the Olgovskoye and Makeevskoye Fields. This will involve the drilling of new wells, the completion of new zones in existing wells, dual completions, stimulation treatments using modern and technically advanced methods commonly used elsewhere in the world and the effective implementation of a compression strategy.

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 gas producing assets of KUB-Gas consist of 100% interests in four licenses near to the City of Lugansk in the northeast part of Ukraine.

In Syria, KOV holds a participating interest of 100% 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 agreements to assign an aggregate of 55% in ownership interests to third parties which are 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., increased its holdings in the Company through participation in the initial public offering of the Company on the Warsaw Stock Exchange in May 2010 and the conversion of a debenture and owns almost 50% 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 four license areas (Vergunskoye, Krutogoroskoye, Makeyevskoye and Olgovskoye) in Ukrainethat are not historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, anypotential 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 thatthe 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.