Kulczyk Oil Ventures Inc. report that the Ukrainian Ministry of Fuel and Energy has formally acknowledged and approved the conversion of the Makeevskoye License from a five-year exploration license to a 20-year production license.

Under the terms of the exploration license the Makeevskoye License was not allowed to produce more than 10% of hydrocarbon volumes in place. Under the terms of the new license, the aggregate production from the Makeevskoye field is no longer limited. The Makeevskoye License is operated by KUB-Gas LLC (KUB-Gas), a partially-owned subsidiary in which KOV has a 70% effective ownership interest.

Tim Elliott, President and Chief Executive Officer, stated that,"The conversion of the Makeevskoye license into a 20-year production license is a significant milestone. With production no longer capped we expect to continue production from the M-19 well at the recent high rates which have seen KOV net production surpass 15 MMcf/d for the first time. The conversion of the Makeevskoye license and the recent conversion of the Olgovskoye license will allow for the full development of the fields within these license areas."

Tags: Kulczyk Oil Ventures