CALGARY, ALBERTA--(Marketwire - Jan. 13,
2011) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV) is pleased
to announce that its 70% owned subsidiary, KUB-Gas LLC ("KUB-Gas") has been awarded another exploration license
area in Ukraine.
The North Makeevskoye Exploration License is located adjacent to the KUB-Gas
Makeevskoye and Olgovskoye licenses, near the City of Lugansk in eastern Ukraine. Similar to the KUB-Gas Makeevskoye
and Olgovskoye licenses which lie along the primary southeastern Dneiper-Donets Basin gas/condensate structural trend, the
19,050 hectare (47,073 acre) North Makeevskoye license area is prospective for gas production from multiple zones within the
Muscovian and Bashkirian sedimentary section. The award of this license to KUB-Gas increases their total holdings to five
license areas and increases their total area under license by more than 110% to 36,315 hectares (89,736 acres).
Mikhail Afendikov, the Managing Director of Gastek LLC, KOV's 30% partner in KUB-Gas stated that: "We are
very pleased to get this new license so close to our M-19 gas discovery."
Tim Elliott, President
and Chief Executive Officer of KOV stated that: "Our experience with KUB-Gas and with our partner Gastek has been a very
positive one. We will continue to have a very active program in Ukraine as gas production is developed on the KUB-Gas
licenses."
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link: http://media3.marketwire.com/docs/113kov1.pdf
The North Makeevskoye Exploration License has a 5-year term effective 29 December 2010. It is located
adjacent to the Makeevskoye License and 4 kilometres east of the KUB-Gas M-19 gas discovery which was production tested in
late December at 5 million standard cubic feet per day ("MMscf/d") through a 10 mm choke.
KOV
and its joint venture partner KUB-Gas will incorporate all available subsurface data at North Makeevskoye into an exploration
model similar to that which was successfully constructed for the Makeevskoye and Olgovskoye licenses. This will be followed
by the acquisition of a 2D seismic survey over the North Makeevskoye Exploration License in mid-2011. The first wells to be
drilled on the new license might be expected in late 2011 or early 2012 depending on results of the 2011 seismic program.
Assets of Kulczyk Oil
Kulczyk Oil is an international upstream oil and gas exploration
company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration
in Brunei and Syria to production and development in Ukraine.
In Brunei, KOV owns working interests
in two production sharing agreements which gives the Company the right to explore for and produce oil and natural gas from
Block L and Block M. KOV owns a 40% working interest in Block L,a 2,220 square kilometre (550,000 acre) area covering
onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 3,011 square kilometre (744,000 acre)
area onshore in southern Brunei.
In Ukraine, KOV owns an effective 70% interest in KUB-Gas LLC. The
assets of KUB-Gas consist of 100% interests in five licenses near to the City of Lugansk in the northeast part of Ukraine.
In Syria, KOV holds a participating interest of 100% in the Syria Block 9 production sharing contract which provides
the right to explore for and, upon fulfillment of certain conditions, to produce oil and gas from Block 9, a 10,032 square
kilometre (2.48 million acre) area in northwest Syria. The Company has agreements to assign an aggregate of 55% in ownership
interests to third parties which are 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.
The main shareholder of the
Company, Kulczyk Investments S.A., increased its holdings in the Company through participation in the initial public offering
of the Company on the Warsaw Stock Exchange in May 2010 and the conversion of a debenture and owns almost 50% of the issued
common shares. Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.
Forward-looking
Statements This release contains forward-looking statements made as of the date of this announcement
with respect to future activities of KUB-Gas and related to its five license areas (Vergunskoye, Krutogoroskoye, Makeevskoye,
North Makeevskoye and Olgovskoye) in Ukraine that are not 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.
