Kulczyk Oil successfully tests M-16 well

KUB-Gaz, the Ukrainian subsidiary of Kulczyk Oil (KOV PW), tested its new M-16 well at the maximum stabilized rate of 4.3 MMcf/d, Kulczyk announced on April 9. During the tests, KUB-Gaz perforated two potential natural gas-bearing zones. The S-13 zone indicated insufficient gas flow rates and the company plans to stimulate it this year. The S-5 zone indicated a maximum stabilized rate of 4.3 MMcf/d through an 8-mm choke at flowing tubing head pressure of 1,900 psig. The well will be tied-in for commercial production late in 2Q13 and up to three new wells could be drilled to fully develop the gas-bearing zones discovered by the M-16 well.

Roman Dmytrenko: The M-16 well might add up to 16% to Kulczyk’s current net hydrocarbon output if it demonstrates a sustainable flow rate. The new discovery is also encouraging for investors concerned with the company’s resource base. A new pool gas discovery at the Makeevskoye license area will potentially add to the company’s proven reserves, which stood at 3,990 MMboe (just 3.3 years of production) as of end-2012.