Kulczyk Spuds O-12 Well at Olgovskoye License

Kulczyk Oil Ventures Inc. has commenced drilling of the O-12 well on the Olgovskoye License in Ukraine.

The O-12 well is located approximately 1.4 kilometres to the northwest of the recently tested O-9 well. The O-12 well will be drilled to a depth of 2,650 metres and is designed to test gas-bearing reservoirs in the Muscovian and Bashkirian sections and to further develop the gas production capability of the Olgovskoye Field. The drilling of the O-12 well is expected to take approximately 40 days.

The well, identified after interpretation of 2D seismic data by the KOV/KUB-Gas technical team, is on trend with the main Olgovskoye producing area and is intended to extend the known boundaries of the Olgovskoye Field. A successful well will increase gas production and lead to additional drilling locations along this trend.

The O-12 well is the fourth new well drilled in the Olgovskoye Field 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 and O-14.

 The Olgovskoye Field currently produces from 4 wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon.

Source:  Kulczyk Oil Ventures Inc.