Kulczyk Oil completes drilling of K-7 well

KUB-Gaz, a 70%-owned Ukrainian subsidiary of Kulczyk Oil (KOV PW), completed drilling its new K-7 well at a total depth of 3,206 m, Kulczyk announced yesterday. The drilling logs located up to five potential gas-bearing zones. Further tests are expected to be completed in early 2013, while the well itself will be tied in to commercial production in 2Q13. The rig is now being removed to commence drilling on a new NM-2 well in early December.

Roman Dmytrenko: The preliminary drilling results look encouraging for Kulczyk. The K-7 well exploration success could double the Krutogorovskoye license area’s low-estimate 3P reserves to 4.7 Bcf. In addition, we expect the sucsessful completion of drilling in M-16 – another exploration well that is targeting a natural gas bearing zone with low-estimate contigent resources of 9 Bcf – could become a stock price catalyst this month.