Kulczyk Oil Ventures Inc.: Ukraine-Makeevskoye-16 Well Cased to TD, Seven Potential Gas Zones Identified
December 07 2012 - 5:38AM
Marketwired
Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil", "KOV" or the
"Company"), an international upstream oil and gas exploration and
production company, is pleased to announce that the Makeevskoye-16
("M-16") exploration well in Ukraine, has been cased to its total
depth ("TD") of 4,300 metres after encountering seven potential
gas-bearing reservoirs. The M-16 well is operated by KUB-Gas LLC
("KUB-Gas"), a partially-owned subsidiary in which KOV has a 70%
effective ownership interest and is the deepest well drilled to
date by KUB-Gas.
Makeevskoye-16 Exploration Well
The M-16 exploration well, located 6.7 kilometres to the
northwest of the Makeevskoye-21 gas discovery drilled in the first
quarter of 2012, commenced drilling in early August as part of the
accelerated 2012 drilling program. It reached its revised total
depth of 4,300 metres on 28 November 2012 and has now been cased to
TD. Completion and testing of the well will occur in the first
quarter of 2013.
The M-16 well is the deepest well drilled by the Company to
date, having previously never drilled deeper than 3,200 metres. The
well, which targeted a prospect with multiple potential reservoir
units in sediments of Carboniferous age, is the first well drilled
by KOV through the complete Serpukhovian section and into a
reservoir section of Visean age. The well ultimately penetrated
approximately 83 metres of unconfirmed Visean section.
The well encountered seven zones which appear to be gas-bearing
based upon drilling information and interpretation of wireline
logs. Potential gas zones were encountered in the Moscovian,
Bashkirian and Serpukhovian sections of the well. KOV believes that
there could be gas in the Lower Serpukhovian section but log
quality was poor through the lower section due to worsening hole
conditions at depth. As a result, log determination of the presence
of gas was impossible in this deepest section of the well. Of
particular interest is the Bashkirian R30c zone at a depth of 2,503
metres which appears to be gas-bearing in the M-16 well and is
quite extensive, being present in both the Olgovskoye and
Makeevskoye Licenses.
Jock Graham, Executive Vice President of the Company says:
"While we will have to wait to see how the testing of the well
progresses, we are very pleased with the results of the M-16 well
thus far. Operationally, drilling our first well to 4,300 metres
without any material problems is an accomplishment our team is
justifiably proud of. Of course to have encountered almost 22
metres of confirmed potential gas-bearing zones, with the
possibility of an additional 49 metres in the Serpukhovian,
depending on log interpretation, is very exciting. We believe that
success here will open up new opportunities and targets elsewhere
in our licenses, providing an additional path to continued reserve
and production growth."
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.
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
Contacts: Kulczyk Oil Ventures Inc. - Canada Norman W. Holton
Vice Chairman +1-403-264-8877nholton@kulczykoil.com Kulczyk Oil
Ventures Inc. - Poland Jakub J. Korczak Vice President Investor
Relations & Managing Director CEE +48 22 414 21
00jkorczak@kulczykoil.com www.kulczykoil.com