CALGARY, ALBERTA--(Marketwire - Jan. 18, 2012) - Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("Kulczyk Oil", "KOV" or "Company") an international upstream oil and gas company, is pleased to report that an extension to the terms of the Production Sharing Agreement ("PSA") has been granted by PetroleumBRUNEI. Under the terms of an amendment to the PSA the requirement to complete the existing minimum work obligations has been extended from 27 August 2012 to 27 August 2013.

Tim Elliott, President and Chief Executive Officer of KOV stated:

"We are pleased with the extension and believe that it now provides sufficient time to complete the work obligations under the PSA, to adequately delineate the potential of the West Jerudong prospect and to further investigate the additional exploration potential of Brunei Block L."

The minimum work obligations include:

  • acquire and process 130 square kilometres of onshore 3D seismic;
  • acquire and process 13.5 square kilometres of onshore 3D swath data
  • acquire and process 13 kilometres of onshore 2D seismic
  • drill a minimum of 2 exploration wells.

Planning for the 3D seismic program over West Jerudong is progressing and the first shot, which marks the formal start of seismic acquisition, is expected later this month. The seismic team required for the program has been mobilized, field camps have been constructed and surveying and topographical work is nearing completion. The 2D seismic line in the East Tutong area of the block has now been completed and will be complemented by a 3D test swath east of the Lempuyang-1 well.

About Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Brunei, Syria and Ukraine and with a risk profile ranging from exploration in Brunei and Syria to production and development in Ukraine. In addition, KOV has an option to participate for a 9% net indirect working interest in OML 42 in Nigeria. The common shares of the Company trade on the Warsaw Stock Exchange under trading symbol "KOV".

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 90% working interest in Block L, a 1,110 square kilometre (275,000 acre) area covering onshore and offshore areas in northern Brunei and a 36% working interest in Block M, a 1,505 square kilometre (372,000 acre) area onshore in southern Brunei.

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 50% in the Syria Block 9 production sharing contract which provides the right to explore for and, upon the satisfaction 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 an agreement to assign a 5% ownership interest to a third party which is 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 Nigeria, KOV has an option until 31 March 2012 to participate for a 9% net indirect interest in OML 42, an 814 km2 license area in the Niger Delta with oil production and shut-in oil and gas producing capability.

The main shareholder of the Company, Kulczyk Investments S.A. owns approximately 44.3% 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 Statements This release may contain forward-looking statements made as of the date of this announcement with respect to future activities on Brunei, Block L and other statements 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 draft 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 that the 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.

Contact Information:

Kulczyk Oil Ventures Inc. - Canada
Norman W. Holton
Vice Chairman
+1403 264-8877

Kulczyk Oil Ventures Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00

Suite 1170, 700-4th Avenue S.W.,
Calgary, Alberta
+1-403-264-8861 (FAX)

United Arab Emirates
Al Shafar Investment Building, Suite 123, ShaikhZayed Road,
P.O. Box 37174, Dubai
+971-4-339-5212 (FAX)

ul. Nowogrodzka 18/29
00-511 Warszawa
+48 (22) 414 21 00
+48 (22) 412 48 60 (FAX)