HOUSTON, TEXAS — (Marketwire) — 05/30/12 — CUB Energy Inc. (“CUB”, or the “Company”) (TSX VENTURE: KUB), announces its financial and operating results for its third fiscal quarter ended 31 March 2012. The Company saw record quarterly production and operating cash flow with strong netbacks of $8.79 per Mcf. Additionally, CUB completed its previously announced reverse take-over transaction with Gastek LLC. The Company–s production and revenue is derived from nine licenses in Ukraine. Five licenses in Eastern Ukraine are owned and operated by KUB-Gas LLC (“KUB-Gas”), a subsidiary in which CUB has a 30% effective ownership interest, and four licenses are in Western Ukraine in which CUB has a 100% ownership interest. All dollar amounts are expressed in United States currency.
Q1 HIGHLIGHTS
Financial
Operational
Eastern Ukraine – Cub Energy through equity investment in KUB-Gas
Western Ukraine – Cub Energy wholly owned subsidiary Tysagaz
Mikhail Afendikov, Chairman and Chief Executive Officer of CUB, commented:
“First quarter results reflect our ongoing focus on low-risk development of proven and underexploited assets utilizing modern field-optimisation techniques. In the first quarter 2012 the Company demonstrated significant production growth along with continued strength in commodity prices for natural gas and condensate in Ukraine. These two combined led to growth in our cash flow generation, which will be used to fund further activity. We exited the quarter at a record production rate of approximately 1,200boe/d.
“I am excited about the opportunities to further increase our production volumes in the second quarter. With the conversion of Olgovskoye and Makeevskoye licenses to 20-year production licenses, the cap on their production has been removed. Additionally, we are optimistic the workovers on wells started in Q1 will boost production in the Western assets. I believe the Company has the assets, contacts and team to deliver substantial growth for our shareholders and are progressing our robust investment plans in Ukraine.”
CUB filed its first quarter operating and financial results on 29 May 2012 by filing on SEDAR () and has posted a link on its website at .
About CUB Energy Inc.
Cub Energy Inc. is a TSX Venture Exchange company focused on the exploration and development of oil and gas in Ukraine. The Company is headquartered in Houston, Texas with offices in Kyiv, Ukraine. Cub has 110,000 net acres, in nine fields, 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 under the stock symbol KUB.
For further information please contact or visit our website .
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