NM-1 drilling started Kulczyk Oil Ventures Inc.: Drilling Commences At North Makeevskoye, Ukraine
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Mon May 7, 2012 8:01am EDT
CALGARY, ALBERTA, May 07 (MARKET WIRE) --
Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company")
(WARSAW:KOV), an international upstream oil and gas exploration and
production company, is pleased to announce that the North Makeevskoye-1
("NM-1") exploration well has commenced drilling. The NM-1 well, which is
operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which KOV has a 70%
effective ownership interest, is the first well to be drilled on the
North Makeevskoye Exploration Licence in Ukraine.
North Makeevskoye Exploration Well
The North Makeevskoye-1 ("NM-1") exploration well is expected to take
approximately 40 days to reach a planned total depth ("TD") of 2,500
metres. Some drill stem tests ("DSTs") may be undertaken and, if
initiated, additional time may be needed before TD is reached. The NM-1
well will target a prospect with multiple reservoir units in Bashkirian,
Muscovian and Serpukovian aged sediments and will be drilled with the
KUB-Gas owned K-200 drilling rig. The NM-1 well is located approximately
10 kilometres to the northeast of the Olgovskoye Field. RPS Energy, the
Company's independent engineering firm, in their 2011 year-end report
dated March 20th, 2012, allocated Low, Mid and High Case Prospective
Resources to the NM-1 prospect, net to KOV, of 7.78 Bcf, 30.23 Bcf and
75.04 Bcf respectively.
North Makeevskoye Licence
In January 2011, KOV announced that KUB-Gas was awarded the North
Makeevskoye exploration licence area in Ukraine. The North Makeevskoye
Exploration Licence is located immediately northeast of KUB-Gas'
Makeevskoye and Olgovskoye licences, near the City of Lugansk in eastern
Ukraine. The Company believes the licence to be geologically similar to
the productive areas which lie along the primary South-Eastern
Dnieper-Donets Basin gas/condensate structural trend - such as the
adjacent KUB-Gas Makeevskoye and Olgovskoye Licences. The award of the
19,050 hectare (47,073 acre) North Makeevskoye Licence to KUB-Gas
increased the Company's total holdings to five licence areas and
increased KUB-Gas' total area under licence by more than 110% to 36,315
hectares (89,736 acres). The North Makeevskoye Exploration Licence has a
five year term effective from 29 December 2010.
Jock Graham, Executive Vice President of KOV, commented:
"We are excited about the potential of the North Makeevskoye Licence,
which we consider to be highly prospective. There are several large
undrilled structures on the licence, one of which will be targeted by the
NM-1 exploration well. Wells such as NM-1 have the potential to add
significant value to the Company and help provide the basis for future
reserves and revenue growth."
During the second quarter of 2011, KUB-Gas acquired 71 kilometres of new
2D seismic data over the North Makeevskoye Licence. Interpretation of
this new data in combination with approximately 275 kilometres of
pre-existing 2D seismic data resulted in NM-1 being defined as the first
drilling location on this new licence. In the first quarter of 2012 225
km2 of new 3D seismic data was acquired over the majority of the North
Makeevskoye Licence. Processing of the seismic data is currently underway
and interpretation of the processed data may define additional drilling
locations by August 2012.