Kulczyk Oil Ventures Abandons North Makeevskoye-2 in Ukraine

Kulczyk Oil Ventures Inc. has announced that the North Makeevskoye-2 ("NM-2") exploration well, which commenced drilling in early December, has been abandoned after being drilled to a depth of 3,150 metres after wireline logs and other information obtained during the drilling operation did not indicate any prospective zones. The NM-2 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70% effective ownership interest. 

The North Makeevskoye Exploration Licence is located immediately northeast of KUB-Gas' Makeevskoye and Olgovskoye licences, approximately 130 kilometres to the northwest of the City of Lugansk in eastern Ukraine. The Company believes the licence to be geologically similar to the productive areas which lie along the primary South-Eastern Dnieper-Donets Basin gas/condensate structural trend - such as the adjacent KUB-Gas Makeevskoye and Olgovskoye Licences. 

In the first quarter of 2012, 225 km2 of 3D seismic data was acquired over the majority of the North Makeevskoye Exploration Licence. Interpretation of the new 3D seismic data in combination with the 71 kilometres of 2D seismic acquired during the second quarter of 2011 and 275 kilometres of pre-existing 2D seismic data has contributed to the overall geological understanding of the North Makeevskoye Exploration Licence and resulted in five additional structural prospects being identified. The NM-2 well, which has evaluated the potential of the first of the prospects defined by 3D seismic, is located 13 kilometres to the southeast of the North Makeevskoye-1 ("NM-1") well which was drilled during the second quarter of 2012 on legacy 2D seismic data and cased to TD as a candidate for future fracking. Additional drilling on the North Makeevskoye licence is expected to occur later in 2013.