Kulczyk Oil Ventures Inc.: Ukraine Reserves and Resources Update- 2P Reserves Value Increased 9.2% to $177.8 Million

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2012) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV), an international upstream oil and gas company, announces Reserves and Resource volumes and estimated value for its Ukrainian reserves effective as of 31 July 2012, as evaluated by independent reserve engineers RPS Energy Consultants Ltd. ("RPS") in their report dated 12 November 2012. All Reserve and Resource volumes, as well as Reserves net present values attributed to the Ukraine assets herein refer to KOV's effective 70% ownership interest in KUB-Gas LLC ("KUB-Gas"), its majority-owned subsidiary, which owns and operates four producing licenses (Vergunskoye, Olgovskoye, Makeevskoye and Krutogorovskoye).

Highlights:

• Net Present Value ("NPV") of future net revenue attributable to Proved plus Probable (2P) Reserves in Ukraine increased 9.2% since the last report of RPS on the Ukraine assets effective 31 December 2011 and dated 20 March 2012 ("Prior Ukraine Report") to USD 177.8 million before tax at a discount factor of 10%;
• Proved + Probable + Possible (3P) Reserves, after royalties, were estimated at 54.2 billion cubic feet ("Bcf") of natural gas (compared with 40.4 Bcf in the Prior Ukraine Report) and 427.8 thousand barrels ("Mbbls") of natural gas liquids ("NGL") (compared with 213.0 Mbbls in the Prior Ukraine Report) for a total of 9,463 million barrels of oil equivalent ("MMboe");
• Proved + Probable (2P) Reserves, after royalties, were estimated at 32.5 Bcf of natural gas (compared with 30.8 Bcf in the Prior Ukraine Report) and 202.5 Mbbls of NGL (compared with 142.6 MMbbls in the Prior Ukraine Report) for a total of 5.624 MMboe;
• Proved (1P) Reserves, after royalties, were estimated at 18.6 Bcf of natural gas (compared with 26.6 Bcf in the Prior Ukraine Report) and 84.1 Mbbls of NGL (compared with 120.1 Mbbls in the Prior Ukraine Report) for a total of 3.192 MMboe;
• Ukraine Contingent Resources "Best Estimate" (2C) increased to 65.9 Bcf of natural gas from 59.6 Bcf in the Prior Ukraine Report while Prospective Resources unrisked "Best Estimate" remained unchanged compared to the Prior Ukraine Report.

Net production to the 70% interest of KOV during the first seven months of 2012 (until the date of the new RPS report) was 3.0 Bcf of natural gas and 30.4 Mbbls of condensate. Net operating income to the 70% interest of KOV during the first seven months of 2012 was $27.1 million.

Tim Elliott, CEO of Kulczyk Oil, commented:

"The increase in the value of our 2P Reserves at NPV10 to $177.8 million while at the same time receiving $38.4 million from sales of production is very gratifying. Our success in the Ukraine has been driven by a team effort by KOV, its 30% partner in KUB-Gas and by the KUB-Gas team in Ukraine. We are extremely pleased with the progress made to date in Ukraine and, while we do not expect every new well to be a success, we are confident that our drilling program will continue to yield positive results and that we will continue to build on the solid base that we have established."

Ukraine Reserves

Proved plus Probable (2P) Reserves at 31 July 2012, net to KOV, have increased to 33.7 billion cubic feet equivalent ("Bcfe") (5.624 MMboe) after royalties, a modest increase of 6.7% since the last RPS evaluation effective 31 December 2011. The percentage change in Reserves volumes from 31 December 2011 to 31 July 2012, after considering KOV's net production during the seven months between the effective dates, is shown in the table below. Reserves additions came from a continuation of our successful drilling and development program in the Makeevskoye and Olgovskoye field areas. Any decreases in Reserves resulted from technical revisions and from the approximately 3.2 Bcfe of net natural gas and condensate volumes produced during the year.

RPS RESERVES (1)
	% Change (2)	Natural Gas (MMcf)	NGL (Mbbl)	MMboe	Bcfe
Total Proved (1P)	(13.7)	18,646.4	84.1	3.192	19.151
Total Proved Plus Probable (2P)	6.7	32,531.8	202.5	5.624	33.747
Total Proved Plus Probable Plus Possible (3P)	36.2	54,211.9	427.8	9.463	56.779
(1) Reserves are net to the 70% KOV interest after deduction for royalty
(2) % change since 31 December 2011 after adjustment for 3.2 Bcfe of net production during the seven month period ending 31 July 2012

Ukraine Resources

The report prepared by RPS evaluated the Prospective and Contingent Resources attributable to the 70% interest of KOV in KUB-Gas and estimated total high case (3C) Contingent Resources at more than 157 Bcf and total unrisked high case (High Estimate) Prospective Resources at more than 108 Bcf as summarized in the table below:

	RPS CONTINGENT RESOURCES (1)			RPS PROSPECTIVE RESOURCES (1)
License Area	Billion Cubic Feet (Bcf)
	1C	2C	3C	Low Estimate	Best Estimate	High Estimate
Olgovskoye 2	3.92	15.32	38.61	0.09	0.39	1.02
Makeevskoye 2	11.27	45.44	109.58	10.67	40.71	93.83
Krutogorovskoye 2	1.81	5.13	8.83	1.71	6.31	13.58
TOTAL 3	17.00	65.90	157.02	12.47	47.41	108.42
(1) Resources are gross to the 70% KOV interest
(2) Prospective or Contingent resources were not assigned to North Makeevskoye in this report. Table volumes are unrisked with Chance of Discovery (GPoS) estimated to be approximately 35% for each of Olgovskoye, Makeevskoye and Krutogorovskoye.
(3) All Prospective and Contingent Resources are natural gas.
(4) Total assumes all drilling is successful which has an estimated GPoS of 4.8%. Arithmetic totals of Low and High Estimates are statistically incorrect as it tends to under-state the true P90 (Low Estimate) and over-state the P10 (High Estimate).

There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources.

Oil and Gas Equivalents

Production information is commonly reported in units of barrel of oil equivalent ("boe" or "Mboe" or "MMboe") or in units of natural gas equivalent ("Mcfe" or ("MMcfe" or ("Bcfe"). However, boe's or Mcfe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf = 1 barrel, or a Mcfe conversion ratio of 1 barrel = 6 Mcf, is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Defined Terms

"Reserves" are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied. Reserves are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status.

"Proved Reserves" are those quantities of petroleum, which by analysis of geosciences and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations.

"Probable Reserves" are those additional Reserves which analysis of geosciences and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.

"Possible Reserves" are those additional Reserves which analysis of geosciences and engineering data indicate are less likely to be recoverable than Probable Reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible Reserves.

"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 case (1C), best case (2C) and high case (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" 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" 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" 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 a 90% working interest in a production sharing agreement which gives the Company the right to explore for and produce oil and natural gas from Block L, a 1,123 square kilometre area covering onshore and offshore areas in northern 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 is Kulczyk Investments S.A., 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 licence areas in Ukraine and to certain wells drilled or seismic activities undertaken within those licence 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.

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