Kulczyk Oil Ventures Inc.: Ukraine- Operations Update

CALGARY, ALBERTA--(Marketwire - April 18, 2011) -

Highlights

• O-9 well drilled, logged and cased to TD. Multiple hydrocarbon bearing zones indicated on logs. Testingto start early May;

• O-14 scheduled to spud at the end of April;

• M-19 target start production in June. Internal reserve estimate of 10 billion cubic feet ("Bcf") of gas;

• 3D seismic over the Olgovoskoye and Makeevskoye fields 70% complete;

• Gas production in 1Q 2011 averaged 6,040 thousand cubic feet ("Mcf") per day at an average price of US$8.03 per Mcf compared to5,738 Mcfper day in 4Q 2010 at an average price of US$ 7.93 per Mcf.

General

In the first 10 months of operations since acquiring KUB-Gas, Kulczyk Oil Ventures Inc. (WARSAW:KOV) (the "Company" or "KOV") has focused its efforts on the Olgovskoye and Makeevskoye field areas. The results of these efforts have been a significant increase in Reserves (134%),Contingent Resources (434%) and resulting production capability. Going forward the Company will continue to build on this solid foundation. The current 3D seismic programme is expected to have a meaningful impact on our understanding of the Olgovskoye and Makeevskoye field areas and lead to further development opportunities. Since acquiring our interest in KUB-Gas in June 2010, KOV has worked with KUB-Gas personnel in Ukraine to apply the latest technology and field operating practices. The M-19 discovery is an example of the application of modern technology leading to exploration success. We will endeavor to replicate this success elsewhere within the Olgovskoye and Makeevskoye field areas and the new 3D seismic will help us do so.

In addition, the Company sees significant resource potential in certain zones which appear hydrocarbon bearing but are relatively tight and therefore difficult to produce. Currently, no resources are allocated to these zones but we are starting to try different approaches to these low porosity reservoirs in an effort to obtain commercial production. The acid stimulation on 0-8 described below was such an attempt at trying something new. We will continue to evaluate potential procedures, including hydraulic fracturing operations,horizontal drilling and selective acidizing treatments to unlock additional value from the KUB-Gas properties.

On our new North Makeevskoye exploration license, KUB-Gas will be acquiring approximately 65 kilometres of 2D seismic in June 2011. Once processed and interpreted, the technical staff will start planning for the first exploratory well on the North Makeevskoye license to be drilled in early 2012.

The technical staff of KOV has now compiled all available technical data on the Vergunskoye and Krutogorovskoye fields. Our goal is to continue to apply modern and technically advanced oil field procedures and, hopefully, achieve a level of success similar to that achieved in the first 10 months of operations on the Olgovskoye and Makeevskoye fields.

Jock Graham, Executive Vice President, stated that: "I am extremely pleased with the progress made with the development of our Ukrainian asset base thus far. Reserves have increased significantly, substantial Contingent Resources have been allocated and production is rising. I fully expect more positive news in the future as we continue to execute our exploration and development plans on our five licenses."

Drilling Operations

The O-9 well started drilling on March 5^thand was drilled to a depth of 2,638 metres. The well has been logged, cased and is currently waiting for the arrival of the service rig to start testing. The logs indicatepotentialmultiple hydrocarbonbearing zones. Testing of the well is estimated to start in early May 2011.

The Company's drilling rig is now moving to the O-14 well location. The O-14 well is important for the Company as it is being drilled within the large Savasivskaya fault compartment which is independent from the primary Olgovskoye gas accumulation. RPS Energy ("RPS"), the Company's independent engineering consulting firm has assigned Contingent Resources of 17.6 Bcf of gas (Best Estimate) and 41.5 Bcf (High Estimate) to the target area. The well is designed to be drilled to a target depth of 2,800 metres to evaluate whether the producing horizons continue from the primary Olgovskoye fault block into the Savasivskaya fault block. The 0-14 well should take approximately 45 days to drill.

Testing Operations

Logging of the O-8 well in February identified several deeper zones that were selected for testing and acidization below the primary target zone. These deeper zones have not previously produced in the Olgovskoye field. The zones, which look hydrocarbon bearing on logs, had very low permeability and acidization of the zones did not result in any significant inflow of gas. A successful completion in these zones could access a significant resource and the Company is currently evaluating whether to hydraulically fracture some or all of the zones.

The primary target in the O-8 well, which has not yet been tested, is the same zone that is currently producing at the O-7 well,2.1 kilometres to the northwest. The service rig was released to conduct some required work on O-6, an older well in the field, and will move to the O-9 location for testing prior to returning to O-8 to test the primary target.

M-19 Production Start-Up

Progress is being made on the permitting and construction of the pipeline required to tie-in the M-19 well. Anticipated startup of production is scheduled for June 2011. Subsequent to the January 10, 2011 news release on the M-19 well, where the Company announced a flow rate of 5,000 Mcf per day of gas, the Company collected pressure data on the well over a 5-day period. The data obtained indicated very little pressure drawdown and the Company's internal estimate of Reserves is approximately 10Bcf, substantially higher than the 3.5 Bcf of P1 Reserves allocated to the M-19 discovery by RPS prior to the pressure data being available.

3D Seismic

The 3D seismic program covering the Olgovskoye and Makeevskoye fields commenced in February 2011. After 70% of the program was complete, the spring thaw resulted in very muddy field conditions and the program was suspended until the surface conditions improve. The program is scheduled to recommence in early May and acquisition should be complete in June.

Defined Terms

"Reserves" are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied. Reserves are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status.

"Contingent Resources" are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not yet considered mature enough for commercial development because of one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent Resources are further categorized into Low Estimate (1C), Best Estimate (2C) and High Estimate (3C) according to the level of certainty associated with the estimates and may be sub-classified based on economic viability.

"Low Estimate (1C)" is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities recovered will equal or exceed the low estimate.

"Best Estimate (2C)" is considered to be the best estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be a 50 percent probability (P50) that the quantities recovered will equal or exceed the best estimate.

"High Estimate (3C)" is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities recovered will equal or exceed the high estimate.

Assets of Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration company with a diversified portfolio of projects inBrunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine.

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. Four of the licenses are gas producing.

In Syria, KOV holds a participating interest of 70% 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 25% 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.

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.

The main shareholder of the Company, Kulczyk Investments S.A. owns almost 50% of the issued common shares.Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.

Translation: This news release has been translated into Polish from the English original.

Forward-looking StatementsThis 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, Krutogorovskoye, Makeevskoye, Olgovskoye and North Makeevskoye) 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 thatthe 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.