Kulczyk Starts Drilling Olgovskoye-14 Well

Kulczyk Oil Ventures has commenced drilling of the O-14 well in the Olgovskoye field in Ukraine.

O-14 exploration well is located approximately 4 kilometres to the southeast of the O-8 well. The O-14 well will be drilled to a depth of 2,800 metres and is designed to test gas-bearing reservoirs in the Muscovian and Lower Bashkirian and to further develop the gas production capability of the Olgovskoye Field.

The drilling of the O-14 well is expected to take approximately 35 days.

The well will target a previously untested fault block identified after interpretation of 2D seismic data, is on trend with the main Olgovskoye producing area.

The O-14 well is the third new well drilled in the Olgovskoye field since Kulczyk acquired its interest in KUB-Gas in June 2010.

The Olgovskoye Field currently produces from 4 wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon. Kulczyk Oil completed drilling of the Olgovskoye-8 well in early January and the well is scheduled to be tested and completed in the second quarter of 2011.The O-8 well was drilled to a total depth ("TD") of 2,780 metres and wireline logging of the open hole identified several potential hydrocarbon-bearing zones.

Another well on the Olgovskoye license, the O-9 well, finished drilling at a depth of 2,638 metres in mid-April and was cased to total depth as a potential multi-zone gas well. A service rig has now been moved on to the O-9 location and the completion of this well has begun. According to the work plan, after O-9 well is tested the service rig will move to test O-8 well.

Source: Kulczyk Oil Ventures