Kulczyk Oil Ventures Inc.: Ukraine-First Successful Fracture Stimulation Yields 2.3 MMcf/d

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) - Kulczyk Oil Ventures Inc. ("Kulczyk Oil", "KOV" or the "Company") (WARSAW:KOV), is pleased to announce the successful completion of the first reservoir stimulation using western hydraulic fracturing technology ("frac'ing"). The frac was undertaken by KUB-Gas LLC ("KUB-Gas"), a partially-owned indirect subsidiary of KOV, on the R30c zone in the Ologovskoye-6 ("O-6") well. After being frac'd, the O-6 well flowed gas at a rate of 2.3 million cubic feet per day ("MMcf/d") through an 8mm choke, from a previously non-commercial zone. The O-6 well was originally drilled by KUB-Gas in 2008 to a total depth ("TD") of 2,530 metres.

HIGHLIGHTS

• O-6 well frac'd and flows gas with condensate at a rate of 2.3 million cubic feet per day (MMcf/d) from a previously unproductive zone
• First frac using modern Canadian technology in eastern Ukraine
• Creates significant upside potential for KUB-Gas

The O-6 frac was implemented on October 26, 2011 and utilized a cross-linked gel water frac fluid with 25 tonnes of ceramic proppant. The target zone in the O-6 well was a Middle Bashkirian silty sandstone interval with a gross thickness of 14 metres which occurs at a depth of approximately 2,270 metres, referred to as the R30c unit. The zone had an indicated permeability of less than 1 millidarcy and was not capable of flowing gas at commercial rates before the frac'ing operation. The frac was designed to penetrate beyond the immediate vicinity of the well bore in to the R30c unit by creating fractures to liberate gas trapped in the tight formation. The company hopes to repeat this success with a frac of the R30c unit in the O-8 well, the second well in this frac programme. Initial indications from the O-8 frac look positive and more information will be made available as soon as the Company has definitive results.

The Company believes that this is the first frac'ing program in the region using frac techniques developed in Canada. The success of this frac could have a material impact on the Company as it has the potential to unlock reserves from many zones that had not been previously allocated reserves or resources and will potentially increase production from currently producing zones.

Jock Graham, Executive Vice President stated that:

"We are extremely excited about the initial results of this frac programme. By proving that the reservoirs in our license areas respond to modern frac technology, we have opened the door to substantial upside to our Ukraine project. While frac'ing is a commonly used procedure in North America on both conventional and unconventional reservoirs and now more recently on shale, to our knowledge this is the first frac of its kind in this part of Ukraine. The Company will now integrate these positive results into its data base with a view to expanding its Ukraine frac programme and continuing our successful track record with our Ukrainian project"

KUB-Gas owns a 100% interest in the Olgovskoye, Makeevskoye and North Makeevskoye, Krutogorovskoye and Vergunskoye licenses in the Lugansk area of Ukraine. KOV owns an effective 70% interest in KUB-Gas with Gastek LLC owning the remaining 30%.

Assets of Kulczyk Oil

Kulczyk Oil is an international upstream oil and gas exploration 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 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.

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 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 an agreement to assign a 5% in 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.

The main shareholder of the Company, Kulczyk Investments S.A. owns 47.6 % of the issued common shares. Kulczyk Investments S.A. is an international investment house founded by Polish businessman Dr. Jan Kulczyk.

For further information, please refer to the Kulczyk Oil website (www.kulczykoil.com)

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

Forward-looking Statements This 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, North Makeevskoye and Olgovskoye) in Ukraine and to certain wells drilled within those license areas 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 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.