Kulczyk Oil Ventures Inc. report the successful dual completion of two wells in Ukraine during the fourth quarter of 2012. The wells, Olgovskoye-18 (O-18) and Makeevskoye-21 (M-21), are both operated by KUB-Gas LLC (KUB-Gas), a partially-owned subsidiary in which KOV has a 70% effective ownership interest. To the knowledge of KOV these wells are the first to be successfully dual completed in the Ukraine.

HIGHLIGHTS

• The KUB-Gas owned snubbing unit was used to prepare the O-18 well for dual completion and perforate the B3 zone; • The B3 zone initially tested gas at 0.700 MMcf/d before declining to a relatively low stabilized rate of 0.136 MMcf/d at a flowing pressure of 550 psi; • The Company will evaluate the pressure information to determine which additional operations (stimulation or compression) can be undertaken in the first quarter 2013 to improve flow; • The R22 zone in the O-18 well (the original producing zone) is currently producing gas at an average rate of 1.4 MMcf/d; • The snubbing unit was also used to dually complete the M-21 well in the R21tb zone. The R21tb was perforated and is expected to flow gas at commercial rates after a fracture stimulation currently schedule for the first quarter of 2013; • Production from two zones in both the O-18 and M-21 wells is expected to commence in the first quarter of 2013.

Tags: Kulczyk Oil Ventures