Kulczyk gains USD 7 mln in dividends from its Ukrainian subsidiary

Ukraine’s KUB-Gas LLC, in which Kulczyk Oil Ventures (KOV PW) has a 70% ownership stake, paid a total dividend of USD 10 mln, out of which Kulczyk received USD 7 mln. It was the first dividend payout from KUB-Gas to its shareholders. Kulczyk noted that the dividend payout was enabled by a 27.5% yoy increase in netback from KUB-Gas’s 2012 natural gas and condensate sales, which also left sufficient funds to pursue its current investment projects.

Roman Dmytrenko: The news is neutral for Kulczyk Oil. We expect Kulczyk to use the proceeds from its Ukrainian subsidiary to finance its drilling campaign this year at its Block L license area in Brunei. As part of that project, Kulczyk plans to drill two onshore exploration wells at an estimated cost of USD 9 mln per well.