Kulczyk Oil finds no gas in NM-2 well

KUB-Gas, a 70% subsidiary of Kulczyk Oil Ventures (KOV), did not find any prospective zones in its NM-2 well, the company reported on Feb. 19. The well, spudded in early December, was drilled to a depth of 3150 m.

Roman Dmytrenko: This is the second consecutive failure in KUB-Gas’ North-Makeevskoye license, which casts doubt on the field’s resource base. The delay in its update on the NM-2 well (which should have been drilled to its target depth a month ago) was a clear sign that something went wrong (refer to our news from Feb. 4), so the news is not a big surprise for us. At the same time, the result does not look too negative for KOV investors since it will not trigger a reserves reduction: the North-Makeevskoye license deposit has yet to be included in the company’s 3P reserves.