Cub Energy Inc.

Cub Energy Inc.

April 07, 2014 08:00 ET

Cub Energy Inc. Commences Drilling of Olgovskoye-11 Well

HOUSTON, TEXAS--(Marketwired - April 7, 2014) - Cub Energy Inc. ("Cub", or the "Company") (TSX VENTURE:KUB) announces that the Olgovskoye-11 ("O-11") development well has commenced drilling. The O-11 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which Cub has a 30% effective ownership interest through its 30% shareholding of KUBGAS Holdings Limited.

Olgovskoye-11 Well

The O-11 well will be drilled as a step-out to the O-9 well for the R30c zone in the Bashkirian and an appraisal of the O-15 well in the S6 zone of the Serpukhovian. The well is located approximately one kilometre southeast of the Company's Olgovskoye-15 ("O-15"), which was drilled last year and began producing from the S6 in July 2013.

The well will be drilled with the KUB-Gas owned K-200 drilling rig and the Company expects that both zones targeted in the O-11 will require fracture stimulation. The O-11 well is expected to take approximately 70 days to reach TD.

Olgovskoye Field

The Company's Olgovskoye ("O") field comprises approximately 43% of gross KUB-Gas production and is Cub's second highest producing field. Given the success last year in the Serpukhovian with the O-15, and the M-16 well on the Makeevskoye field, the Company's new exploration and development efforts have been expanded to include the deeper Serpukhovian targets.

About Cub Energy Inc.

Cub Energy Inc. is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in the Black Sea region. The Company's strategy is to implement western technology and capital, combined with local expertise and ownership, to increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas assets within a high pricing environment.

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Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Cub believes that the expectations reflected in the forward-looking information are reasonable; however there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic and political conditions in Ukraine and globally; industry conditions, including fluctuations in the prices of natural gas; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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