Kulczyk: Commercial Production Commenced at Ukraine Well

Kulczyk Oil Ventures Inc. reported that the Olgovskoye-6 (“O-6″) well in Ukraine has commenced commercial production at a rate of more than 1.5 million cubic feet per day (“MMcf/d”) increasing total field production to more than 18.5 MMcf/d (13 MMcf/d net to KOV). The well is operated by KUB-Gas LLC (“KUB-Gas”), a partially-owned subsidiary in which KOV has a 70 percent effective ownership interest.

Olgovskoye-6

The O-6 well was drilled in 2008 to a total depth (“TD”) of 8,300 feet (2,530 meters). A potential gas-bearing zone, the R30c zone of Middle Bashkirian age, was penetrated at a depth of approximately 7,448 feet (2,270 meters) but subsequent evaluation of the zone at that time indicated that the zone had a very low permeability of less than 1 millidarcy and was not capable of flowing gas at commercial rates.

The R30c zone in the O-6 well was successfully fracture stimulated in the fourth quarter of 2011 as a part of a two well frac program also involving the Olgovskoye-8 (“O-8″) well. The 14 meter thick interval was fracked with 25 tonnes of ceramic proppant. The frac, which was designed to penetrate beyond the immediate vicinity of the wellbore by creating fractures and increasing permeability to liberate gas trapped in the R30c reservoir, was very successful with test rates as high as 2.3 MMcf/d as reported in the KOV press release of 2 November 2011.

The O-8 well, which was successfully fracked shortly after O-6, is expected to be on stream by early March.