HOUSTON, TEXAS — (Marketwire) — 08/06/12 — Cub Energy Inc. (“Cub”, or the “Company”) (TSX VENTURE: KUB), reports the Makeevskoye-20 (“M-20”) well in Ukraine has been cased to total depth (“TD”). The well is operated by KUB-Gas LLC (“KUB-Gas”), a subsidiary in which Cub has a 30% ownership interest.
Makeevskoye-20
The M-20 development well was drilled to a TD of 2,000 metres using the K-200 drilling rig owned by KUB-Gas. The primary objective of M-20 was to evaluate the R8 sands at a depth of approximately 1,450 metres and further develop the Makeevskoye R8 pool originally discovered in the Makeevskoye-19 (“M-19”) well drilled in the second half of 2010 and further developed by the Makeevskoye-21 (“M-21”) well drilled in the second quarter 2012. The top of the R-8 Zone in the M-20 well is approximately 20 metres higher than in the M-19 and well and 36 metres higher than in the M-21 well. A significant increase in gas in the drilling mud was noted when the R-8 zone was penetrated during the drilling operation. Wireline logs indicate that the zone is 18.5 metres thick, has an average porosity of more than 25% and appears to be completely gas charged.
The M-19 well, located approximately 1 kilometre to the west of the M-20 location, commenced production from the R8 zone in July 2011 at an initial rate in excess of 5.5 million cubic feet per day (“MMcf/d”) (1.65 MMcf/d net to Cub). The M-21 well, located approximately 2 kilometres west of the M-20 location, was tied in for commercial production at a rate of 1.7MMcf/d (.5MMcf/d net to Cub) at the beginning of August. The KUB-Gas owned and operated drilling rig is now scheduled to move from the M-20 location to the Krutogorovskoye-7 (“K-7”) location in late August 2012. The K-7 well will be drilled to a TD of 3058 metres to evaluate the potential of Moscovian and Bashkirian zones in a new structure defined by seismic.
Mikhail Afendikov, Chairman and Chief Executive Officer, stated:
“The M-20 well, with its further development of the R-8 Pool, reflects our on-going commitment to increasing the company–s production and revenue by focusing on low-risk development of our proven and underexploited assets. We are progressing our robust investment plans in Ukraine and continue to grow the Company through the acquisition of large undeveloped license areas contiguous with current production and developing them through the combination of seismic, western technology, modern completion practices and local expertise.”
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