TSXV:CART.H - Post by User
Post by
rubiconon Feb 13, 2012 9:09am
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Post# 19524427
Olgovskoye 20-year license
Olgovskoye 20-year license Golly, might we actually see 40 cents this month?
Kulczyk Oil Ventures Inc. (“Kulczyk Oil”, “KOV” or the “Company”), an international upstream oil and gas company, is pleased to report that the Ukrainian Ministry of Fuel and Energy has formally acknowledged the conversion of the Olgovskoye License from a five-year exploration license to a 20-year production license. Under the terms of an exploration license no field is allowed to produce more than 10% of volumes in place. Under the terms of the new license, production from the Olgovskoye field is no longer limited. The Olgovskoye 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 issuance of the 20-year production license for Olgovskoye is a significant accomplishment with a direct affect upon our business. We are very proud of the progress made at Olgovskoye and our other properties in Ukraine. The increasing production from Ukraine over the past 18 months has strengthened our balance sheet and will enable us to continue with our work plan so that Olgovskoye and our other licenses in Ukraine can meet their full potential.”
Olgovskoye License
The Olgovskoye license is presently the most productive of the five licenses held by KUB-Gas in the Lugansk Oblast of southeast Ukraine. Since KOV acquired its ownership interest in KUB-Gas in June 2010 five new gas wells have been drilled on the Olgovskoye license and one additional well at Olgovskoye-6 (“O-6”), which was drilled prior to June 2010, was fracture stimulated in the fourth quarter of 2011. The O-6 well was tied-in as a producing gas well in early February 2012 at a rate of 1.5 million cubic feet per day (“MMcf/d”) (1.05 MMcf/d net to KOV). Gross production from Olgovskoye is currently 12 MMcf/d to KUB-Gas (8.4 MMcf/d net to KOV), representing approximately 65% of total production from all of the licenses.