HOUSTON, TEXAS — (Marketwire) — 08/08/12 — Cub Energy Inc. (“Cub”, or the “Company”) (TSX VENTURE: KUB) announces it has commenced drilling of the Makeevskoye-16 (“M-16”) well in Ukraine. Cub previously announced it was accelerating the Company–s 2012 drilling program and had acquired, through contract, an additional rig from Burova Kompaniya Ukrburservice LLC to drill the M-16 well. The well is operated by KUB-Gas LLC (“KUB-Gas”), a subsidiary in which Cub has a 30% ownership interest.
Makeevskoye-16
The M-16 well, with a planned total depth (“TD”) of 3,850 metres, will evaluate stacked potential reservoir targets in Moscovian, Bashkirian and Serpukhovian aged rocks and is expected to take 90 days to reach TD. The upper portion will be an appraisal well targeting a structure defined by 3D seismic with stacked reservoir units in the Bashkirian and Upper Serpukhovian that have tested natural gas elsewhere within the Makeevskoye field. The deeper portion will be an exploration well to evaluate the hydrocarbon potential of deeper formations in the Lower Serpukhovian and potentially in the Visian. This deep-test well will be the deepest well drilled to date by KUB-Gas and a discovery in these deeper sediments would open up new opportunities for reserve and production growth.
Mikhail Afendikov, Chairman and Chief Executive Officer, stated:
“This latest well will not only target formations that currently produce on the M license, but M-16 will also target deeper formations that have only been sparsely tested to date. Given the success we have had on the M License, we are optimistic about this deep-test well–s potential and excited by the possibility it creates for new opportunities in reserve and production growth.”
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.
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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 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