Ukraine – First Successful Fracture Stimulation Yields 2.3 MMcf/d

abarrelfull wrote on 04 Nov 2011 09:54
Tags: kulczyk shale ukraine upstream

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Kulczyk Oil Ventures Inc. (“Kulczyk Oil”, “KOV” or the “Company”), 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.

JockGraham, 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%.

• Ukraine – First Successful Fracture Stimulation Yields 2.3 MMcf/d

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