Kulczyk Oil Ventures Inc. says that the North Makeevskoye-2 (NM-2) exploration well has commenced drilling. 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 NM-2 exploration well will be drilled as a directional well with a planned measured depth (MD) of 3,187 metres and a planned true vertical depth (TVD) of 2,636 metres. The well is expected to take approximately 45 days to reach its planned MD. The NM-2 well, which will target multiple sandstone reservoirs of Moscovian, Bashkirian and Serpukhovian age, will be drilled with the KUB-Gas owned K-200 drilling rig. NM-2 is located in the southern part of the North Makeevskoye Exploration License, only 4 kilometres north of the Makeevskoye gas production facility.

Internal estimates of the Prospective Resources which may be contained in the prospect being drilled by NM-2, effective as at 29 November 2012, were prepared by KOV management who are qualified reserves evaluators in accordance with the Canadian Oil and Gas Evaluators ("COGE") Handbook. The estimates range between a High Estimate of 137.48 billion cubic feet ("Bcf") and a Low Estimate of 14.44 Bcf, with a Best Estimate of 44.25 Bcf. These estimated Prospective Resource volumes are un-risked and are for the 70% effective interest of KOV in the NM-2 prospect.

Tags: Kulczyk Oil Ventures