HOUSTON, TEXAS--(Marketwire - Nov. 12, 2012) - Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, announces it has commenced commercial production of the Makeevskoye-20 ("M-20") well in Ukraine.
The M-20 well commenced commercial production on 1 November and is currently producing at a gross rate of 1,042 barrels of oil equivalent per day ("Boe/d") (Cub's 30% 312 Boe/d).
The M-20 well was drilled to a total depth ("TD") of 2,000 metres, perforated in the R8 zone and cased to TD in early August 2012. The primary objective of the well was to evaluate the potential of the R8 zone at a depth of approximately 1,450 metres and further develop the Makeevskoye R8 Pool.
The R8 Pool was originally discovered by the Makeevskoye-19 ("M-19") well in the second half of 2010. The pool was extended approximately 1 kilometre to the west by the Makeevskoye-21 ("M-21") well and now has been extended approximately 1 kilometre to the east by the M-20.
Mikhail Afendikov Chairman and CEO stated: "The M-20 well has proven to be another significant producer on the Makeevskoye licence and I am proud of our team. With the K-7 and M-16 wells near completion and testing stage, an aggressive 2013 drill programme, and gas prices that continue near $12/mcf creating strong netbacks, I am confident we will continue to show first-rate results and to create value for our shareholders."
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE:KUB) is a Ukraine-focused upstream oil and gas company, with a proven track record of exploration and production cost efficiency. The Company has offices in Houston, Toronto and Kyiv. Cub has 110,000 net acres, in nine exploration and production licences, in the two major producing basins within Ukraine. The Company's strategy is to use western technology and capital, combined with local expertise to create value in its undeveloped land base, building a portfolio of high margin producing oil and gas assets. Cub shares are traded in Toronto under the stock symbol KUB.
The Company's production and revenue are derived from nine licences; four licences in Western Ukraine in which Cub has a 100% ownership interest and five licences in Eastern Ukraine owned and operated by KUB-Gas, LLC a subsidiary in which Cub Energy has a 30% ownership interest.
For further information please contact us or visit our website www.cubenergyinc.com
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 conditions in the 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 the 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.
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