Kulczyk Oil declared the completion of drilling on the O-8 well in the Olgovskoye Field in Ukraine.

HIGHLIGHTS O-8 development well has reached total depth ("TD") of 2,780 meters; Wireline logging and evaluation identified up to 135 meters of gas pay across 35 reservoir zones; Testing program to commence in Q1 2011; Drilling rig moving to next location at O-9; O-8 Development Well The O-8 well is located in the southern part of the Olgovskoye Field approximately 2,100 meters to the southeast of the O-7 well which was recently put on production. The O-8 well commenced drilling on November 17th and was designed to target the gas-bearing reservoirs of the Lower Bashkirian. The well reached a TD of 2,780 meters on January 3rd. Wireline logging of the open hole identified, depending on the petrophysical cut-offs used, up to 135 meters of hydrocarbon-bearing pay over 35 reservoir intervals and the well was cased to TD in preparation for completion as a producing gas well.

Olgovskoye Field With the recent tie-in of the O-7 well, the Olgovskoye Field now produces from 4 wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon. The O-3 well produces from a Lower Muscovian horizon, the O-4 well produces from the Middle Bashkirian sands and the O-5 well produces from an Upper Muscovian horizon. The recently tied-in O-7 well produces from a Lower Bashkirian horizon.

Location of Next Well The drilling rig is now being moved to the O-9 location which is located within the Olgovskoye license area approximately 1.2 kilometres to the northwest of the O-8 well. The O-9 well is designed to test gas-bearing reservoirs in the Lower Bashkirian and further develop the gas production capability of the Olgovskoye Field. It has a planned TD of 2,600 meters.

Commencement of 3D Seismic Acquisition A 120 sq. km 3D seismic acquisition program commenced at the end of January. This program is designed to cover the entire Olgovskoye and Makeeyevskoye license areas. The acquisition should be complete by the beginning of the second quarter.

Tags: Kulczyk Oil Ventures