HOUSTON, TEXAS — (Marketwired) — 05/30/13 — Cub Energy Inc. (“Cub” or the “Company”) (TSX VENTURE: KUB) a Black Sea region-focused upstream oil and gas company, announced today the filing of its unaudited interim financial and operating results for the three months ended March 31, 2013. Cub filed its first quarter operating and financial results on May 29, 2013 on SEDAR () and has posted them on its website at . All currency references in this press release are in US dollars except as otherwise indicated.
First Quarter 2013 Operational Highlights
First Quarter 2013 Financial Highlights
Corporate Highlights
Mikhail Afendikov, Chief Executive Officer of Cub Energy, commented, “I am pleased with our quarterly results and the operational performance of the company. Strong production delivery and the evolution of free cash flow leaves us well positioned for the year. We are excited about the acquisition of three additional licences in Ukraine and our move into Turkey. Both of these moves offer tremendous upside potential as we continue our growth in the Black Sea region. We have the skills and resources to reward investors with consistent, accretive, organic growth. This is a great time in Cub–s story and we are excited about what is to come.”
2013 Outlook
Cub–s 2013 work programme is fully financed and the Company is well positioned to build on its operational successes achieved in 2012.
Cub intends to drill nine to ten wells (six in Eastern Ukraine, two to three, in Western Ukraine, and one in Turkey) and will workover or recomplete six wells on the Company–s Eastern Ukraine assets. As a result of these projects and from bringing production on-stream from the 2012 CAPEX programme, management forecasts that the Company will exit 2013 with a production rate nearly double that of Cub–s year-end 2012 rate of 1,534 Boe/d.
The Company expects to close on its previously announced acquisition of three additional licences in Eastern Ukraine in the second quarter of 2013 and its acquisition of Anatolia Energy in the third quarter of 2013.
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE: KUB) 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.
For further information please contact us or visit our website: .
Oil and Gas Equivalents
Production information is commonly reported in units of barrel of oil equivalent (“boe” or “Mboe” or “MMboe”) or in units of natural gas equivalent (“Mcfe” or “MMcfe” or “Bcfe”). However, boe(s) or Mcfe(s) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf = 1 barrel, or a Mcfe conversion ratio of 1 barrel = 6 Mcf, is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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 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.
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.
Contacts:
Cub Energy Inc.
Lionel C. McBee
Director of Investor Relations
(713) 677-0439
Cub Energy Inc.
Mikhail Afendikov
Chairman and Chief Executive Officer
(713) 677-0439