Kulczyk Oil Ventures Inc.: Ukraine-Operations Update-M-20 Tests Gas at 5.3 MMcf/d

CALGARY, ALBERTA--(Marketwire - Sept. 3, 2012) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV), an international upstream oil and gas company, is pleased to report that the Makeevskoye-20 ("M-20") well has tested gas at a rate of 5.3 million cubic feet per day ("MMcf/d"). The Company also provides an update on testing of the North Makeevskoye-1 ("NM-1") well and activity on the North Makeevskoye License, on the drilling of the Makeevskoye-16 ("M-16") well and current production from its properties in Ukraine. M-20, NM-1 and M-16, and the producing wells, are operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.

HIGHLIGHTS

• M-20 well tested gas at 5.3 million MMcf/d through a 10 mm choke
• NM-1 testing does not produce gas despite logs indicating gas-charged intervals. Stimulation options, including fracking, are being evaluated
• M-16 well drilling at 1,925 metres
• August average production at 22.9 MMcf/d (16 MMcf/d net to KOV)

Makeevskoye-20

The M-20 well was perforated in the R8 zone. Gas reached surface in one minute and flowed at a rate of 5.3 MMcf/d through a 10 mm choke. The Company expects to have the well tied in for production in the fourth quarter.

The M-20 well was drilled to a total depth ("TD") of 2,000 metres and cased to that depth in early August, 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 delineated 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.

North Makeevskoye License

The NM-1 well, the initial exploration well on the North Makeevskoye License, reached a TD of 2,500 metres and was cased to TD in June 2012. Evaluation of both the wireline logs and information obtained during the drilling of the well indicates potential for hydrocarbon accumulation in both Bashkirian and Serpukovian aged sediments. Two reservoir units are within a 70 metre thick limestone interval and another appears to be within a 30 metre thick sandstone. Testing of both the sandstone and the carbonate indicates that these reservoirs do not have sufficient permeability to produce without stimulation. KOV is looking at the potential for an acidization of the limestone and is reviewing stimulation options for the sandstone, including potential fracture stimulation.

The North Makeevskoye 3D seismic survey has identified five additional structural prospects and interpretation of potential stratigraphic prospects is continuing. Subject to permitting, the first of the additional structural prospects is expected to be evaluated by the drilling of the North Makeevskoye-2 ("NM-2") well near the end of 2012. NM-2 is located in the southern part of the North Makeevkoye License only 4 kilometres north of the Makeevskoye gas production facility.

Makeevskoye-16

The M-16 well has a projected TD of 3,850 metres and is expected to take approximately 90 days from the start of drilling operations in early August to reach TD. The M-16 well is currently drilling at a depth of 1,925 metres. The well is being drilled to evaluate a prospect with multiple potential reservoir units in sediments of Carboniferous age. The upper portion will be an appraisal well targeting a structure defined by 3D seismic with stacked reservoir units in the Bashkirian and Upper Serpukhovian sections that tested natural gas elsewhere within the Makeevskoye field. The deeper portion will be an exploration well crossing a fault to test a deep structure to evaluate the hydrocarbon potential of deeper formations in the Lower Serpukhovian and potentially in the deeper Visean sections. A discovery in these deeper sediments would open up new opportunities for reserve and production growth.

Contingent Resources of natural gas (net to the 70% interest of KOV) for the Bashkirian and Upper Serpukhovian zones underlying the M-16 location, as evaluated by the Company's third party engineering consultants and as arithmetically totalled by the Company, range between a Low Estimate (1C) of 9 billion cubic feet ("Bcf") and a High Estimate (3C) of 92 Bcf with a Best Estimate (2C) of 38 Bcf when rounded to the nearest Bcf.

In addition, Prospective Resources of natural gas (net to the 70% interest of KOV) for the Lower Serpukhovian zone in the M-16 prospect, as evaluated by the Company's third party engineering consultants and as arithmetically totalled by the Company, range between a Low Estimate (1C) of 11 Bcf and a High Estimate (3C) of 94 Bcf with a Best Estimate (2C) of 41 Bcf when rounded to the nearest Bcf.

Production

Average production during the month of August from the KUB-Gas wells is approximately 22.9 MMcf/d (16 MMcf/d net to KOV). Gas price for the month of August is US$11.75.

Defined Terms

"Contingent Resources" are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not yet considered mature enough for commercial development because of one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent Resources are further categorized into Low Estimate (1C), Best Estimate (2C) and High Estimate (3C) according to the level of certainty associated with the estimates and may be sub-classified based on economic viability.

"Prospective Resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.

"Low Estimate (1C)" is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities recovered will equal or exceed the low estimate.

"Best Estimate (2C)" is considered to be the best estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be a 50 percent probability (P50) that the quantities recovered will equal or exceed the best estimate.

"High Estimate (3C)" is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities recovered will equal or exceed the high estimate.

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. KOV declared force majeure, with respect to its operations in Syria, in July 2012.

The main shareholder of the Company, Kulczyk Investments S.A. owns 49.99% 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.

Canada

Suite 1170, 700-4th Avenue S.W., Calgary, Alberta, Canada

Telephone: +1-403-264-8877

Facsimile: +1-403-264-8861

Dubai

Al Shafar Investment Building, Suite 123, Shaikh Zayed Road,

Box 37174, Dubai, United Arab Emirates

Telephone: +971-4-339-5212

Facsimile: +971-4-339-5174

Poland

Nowogrodzka 18/29

00-511 Warsaw, Poland

Telephone: +48 (22) 414 21 00

Facsimile: +48 (22) 412 48 60