CUB Energy Inc.

CUB Energy Inc.

February 06, 2012 09:18 ET

Drilling of Well by KUB-Gas LLC Reported

TORONTO, ONTARIO--(Marketwire - Feb. 6, 2012) - CUB Energy Inc. ("CUB", or the "Company") (TSX VENTURE:KUB), an international upstream oil and gas company, is pleased to refer to the news release of Kulczyk Oil Ventures Inc. ("Kulczyk") dated February 6, 2012 (the "Kulczyk Release"), reporting that the Makeevskoye-21 ("M-21") well in Ukraine has commenced drilling. The M-21 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary of Kulczyk. As announced in CUB's news release of January 26, 2012, CUB has entered into a definitive agreement to acquire KUB-Gas' 30% owner, Gastek LLC ("Gastek") (the "Gastek Acquisition"). CUB expects to complete the Gastek Acquisition in the first half of 2012, subject to shareholder and regulatory approval (including approval of the TSX Venture Exchange). Upon completion of the Gastek Acquisition, CUB will be the beneficial holder of Gastek's effective 30% interest in KUB-Gas.

The Kulczyk Release reported the following with respect to KUB-Gas:


The M-21 well has a projected total depth ("TD") of 2,200 metres and is expected to take approximately 45 days to reach TD. The primary objective of the well is to evaluate the potential of the R8 zone at a depth of approximately 1,450 metres. The R8 zone was originally discovered in the M-19 well drilled in the second half of 2010. A secondary objective, a seismic anomaly in the R17 zone at a depth of approximately 1,990 metres, will also be evaluated by the well. The rig move to M-21 took more than three weeks longer than expected due to unusually warm weather in eastern Ukraine which made the transportation of heavy loads impossible with existing equipment.

The M-19 well commenced production in July 2011 at an initial rate in excess of 5.5 million cubic feet per day ("MMcf/d") and was projected at that time to produce at an average of 4 MMcf/d during the second half of 2011. Actual average production from the M-19 well during the second half of 2011 was approximately 5 MMcf/d and current production is approximately 5.2 MMcf/d."

About CUB Energy Inc.

CUB Energy Inc. is a Canadian-based company focused on the exploration and development of oil and gas reserves in Eastern Europe. In the Transcarpathian basin of Ukraine, CUB is the 100% owner and operator of a 20-year production licence with a gas producing asset, as well as three exploration licences with exploration targets and a further development opportunity on a total of 300 square kilometres. The Corporation's strategy is to use proven technology, capital, and expertise to grow the reserves base and build a portfolio of low cost gas production assets in Eastern Europe to capitalize on high regional gas prices. CUB shares are traded on the TSX Venture Exchange under the stock symbol KUB.

Reader Advisory

Information contained herein related to the licenses of KUB-Gas is taken from the press release of Kulczyk's dated February 6, 2012, and such information has not been independently verified by CUB, and CUB makes no representation or warranty with respect to the accuracy of such information.

Completion of the Gastek Acquisition is subject to a number of conditions, including but not limited to TSX-V acceptance and shareholder approval. The Gastek Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Gastek Acquisition will be completed as proposed or at all.

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. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to, the entering into of the Gastek Acquisition and statements with respect to future activities of KUB-Gas and related to its five license areas in Ukraine and to certain wells drilled or seismic activities undertaken within those license areas that either are not or may not be historical facts. All forward-looking information concerning the licenses of KUB-Gas has been taken from the Kulczyk Release and there can be no assurance that the expectations reflected therein will prove to be correct. CUB believes that the expectations reflected in the forward-looking information concerning the Gastek Acquisition are reasonable, however there can be no assurance that such 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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. 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.

Contact Information

  • CUB Energy Inc.
    Mas Kobuchi
    (604) 618-1768