TORONTO, ONTARIO — (Marketwire) — 02/09/12 — 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 9, 2012 (the “Kulczyk Release”), reporting that the Olgovskoye-6 (“O-6”) well in Ukraine has commenced commercial production at a rate of more than 1.5 million cubic feet per day (“MMcf/d”) increasing total field production to more than 18.5 MMcf/d. The O-6 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:
“Olgovskoye-6
The O-6 well was drilled in 2008 to a total depth (“TD”) of 2,530 metres. A potential gas-bearing zone, the R30c zone of Middle Bashkirian age, was penetrated at a depth of approximately 2,270 metres but subsequent evaluation of the zone at that time indicated that the zone had a very low permeability of less than 1 millidarcy and was not capable of flowing gas at commercial rates.
The R30c zone in the O-6 well was successfully fracture stimulated in the fourth quarter of 2011 as a part of a two well frac program also involving the Olgovskoye-8 (“O-8”) well. The 14 metre thick interval was frac–d using 25 tonnes of ceramic proppant. The frac, which was designed to penetrate beyond the immediate vicinity of the wellbore by creating fractures and increasing permeability to liberate gas trapped in the R30c reservoir, was very successful with test rates as high as 2.3 MMcf/d as reported in the KOV press release of 2 November 2011.
The O-8 well, which was successfully frac–d shortly after O-6, is expected to be on stream by early March.”
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 9, 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.
Contacts:
CUB Energy Inc.
Mas Kobuchi
(604) 618-1768