Kulczyk Oil Ventures has commenced drilling of the O-8 well in the southern part of the Olgovskoye field in Ukraine.

The well is located approximately 2,100m to the southeast of the O-7 well which was recently put on production.

The O-8 well will be drilled to a depth of 2,800m and is designed to target the gas-bearing reservoirs of the Lower Bashkirian.

Kulczyk Oil said that the O-8 well, the first new well drilled in the Olgovskoye field since the company acquired its interest in KUB-Gas in June of this year, is part of a larger field development program currently being finalized.

The field development program will result in an active drilling program on the KUB-Gas assets over the balance of 2010 and through 2011.

With the successful tie-in of the O-7 well, the Olgovskoye field now produces from four wells (O-3, O-4, O-5 and O-7) with each well producing from a separate horizon.

The O-3 well produces from a Lower Muscovian horizon, the O-4 well produces from the Middle Bashkirian sands, the O-5 well produces from an Upper Muscovian horizon, and the new O-7 well produces from a Lower Bashkirian horizon.

Kulczyk Oil is an upstream oil and gas exploration company with a diversified portfolio of projects in Brunei, Syria and Ukraine.