Kulczyk releases 1Q11 operations update

Yesterday Kulczyk Oil Ventures (WSE: KOV PW) posted an operations update for 1Q11: daily gas production during the quarter averaged 6,040 Mcf per day at an average price of USD 8.03 per Mcf, up 5.3% q-o-q (compared to 5,738 Mcf per day in 4Q10 at an average price of USD 7.93 per Mcf). Kulczyk carried out successful drilling at the O-9 well where testing is scheduled for May. Production at M-19 is scheduled to start in June with an internal reserve estimate of 10 Bcf of gas. Kulczyk acquired an effective 70% interest in KUB-Gas LLC in June 2010, the latter’s assets consisted of 100% interests in five licenses in northeastern Ukraine.