Kulczyk Oil reports net loss of USD 18.3 mln in 2010

Kulcyzk Oil Ventures (WSE: KOV PW) generated a net loss of USD 18.3 mln in 2010, up 1.5x y-o-y, according to an annual report published by the company yesterday. Kulcyzk’s oil and gas revenue net of royalties was USD 7.5 mln, all of which was generated from its Ukrainian assets. Of the company’s total capital expenditures in 2010 of USD 32 mln, Kulczyk spent USD 7.6 mln on drilling its fields in Ukraine. According to the company’s Ukrainian licenses, it committed to capital expenditures relating to qualifying activities on gas and gas condensate fields of USD 57 mln in 2011-2015. In respect of the acquisition of the North Makeevskoye field, the company is committed to spending USD 3.0 mln. Since June 2010, Kulczyk Oil has owned 70% of KUB-Gas, whose production assets consist of 100% interests in five licenses near the city of Luhansk in Eastern Ukraine, with a total area under license of 36,315 ha.