Cub Energy Announces New Production High and Operations Update
June 27 2014 - 8:00AM
Marketwired
Cub Energy Announces New Production High and Operations Update
HOUSTON, TEXAS--(Marketwired - Jun 27, 2014) - Cub Energy Inc.
("Cub" or the "Company") (TSX-VENTURE:KUB) announces that KUB-Gas
LLC ("KUB-Gas") achieved a significant milestone in daily
production -over 1 million cubic metres per day ("MMcm/d") or
approximately 36 million cubic feet per day ("MMcf/d") after recent
tie-ins. This equates to approximately 10.8 MMcf/d net production
to Cub from KUB-Gas. Cub has a 30% ownership interest in KUB-Gas
through its 30% shareholding of KUBGAS Holdings Limited.
Although production has increased, and will continue, Cub and
its partner have decided to suspend current developmental field
operations to ensure the continued safety of employees and assets
during the ongoing regional conflict in eastern Ukraine. The
declared ceasefire between the Ukraine government and pro-Russian
separatists has not materialized, forcing a situation where KUB-Gas
contractors are refusing to support continued developmental
operations at this time. As such, KUB-Gas is continuing with
production, but suspending developmental field operations until the
situation stabilizes. KUB-Gas will suspend operations on the
following:
- The S6 zone in the O-11 well has been perforated and testing
commenced. Upon perforation, the well had a strong air blow then
flowed gas to surface. The well was shut in for a pressure build up
and the pressure had not stabilized at the time of this release. No
additional tests will be undertaken at this time.
- Surface casing has been set in the NM-4 well at a depth of
100.2 metres, and the rig has been demobilized.
Additionally, the Vergunskoye field, which is located in the
area close to the city of Lugansk, has been temporarily shut in.
This field's production rate of 4 Mcf/d represents less than 1% of
the Company's total production.
Western Ukraine
The Company's western Ukraine wells on the Rusko-Komarovske
("RK") field (RK-2, RK-6, RK-21 and RK-22) continue to produce and
drilling operations at RK-1 are on schedule.
Mikhail Afendikov, Cub's Chief Executive Officer said, "We
are very pleased to reach this high production milestone. While we
are disappointed in our temporary suspension of our field
operations in eastern Ukraine, we must consider the safety of our
employees. We are pleased to continue production and hope to return
to normal operations in eastern Ukraine soon."
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:
www.cubenergyinc.com
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 Ukraine, the Black Sea Region and
globally; political unrest and security concerns in Ukraine;
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 realise
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.
Cub Energy Inc.Mikhail AfendikovChairman and Chief Executive
Officer(713) 677-0439mikhail.afendikov@cubenergyinc.comCub Energy
Inc.Patrick McGrathChief Financial Officer(713)
577-1948patrick.mcgrath@cubenergyinc.comwww.cubenergyinc.com
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