Cub Energy Inc.: Announces Q3 2012 Financial and Operating Results
Posted on November 29, 2012 at 18:09 PM EST
HOUSTON, TEXAS -- (Marketwire) -- 11/29/12 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB), a Ukraine-focused upstream oil & gas company, announces its financial and operating results for the three and nine months ended 30 September 2012.
-- Exit rate for Q3 of 1,224 Boe/d, with a current rate of 1,424 Boe/d; -- Third quarter net back of $49.20/Boe; -- Continued strong natural gas price of $11.64/Mcf and condensate price of $99.18/bbl -- Production averaged 1,263 Boe/d (95% natural gas) an increase of 253% percent over third quarter 2011; -- The K-7 well has been cased to TD (3,206 m) and testing will commence prior to year end; -- The M-16 well is currently drilling and near its planned total depth of 4,300 metres; -- Commenced commercial production of M-21 and M-20 wells at initial rates of 1.7MMcf/d (0.510MMcf/d net to Cub) and 6.25MMcf/d (1.9MMcf/d net to Cub) respectively.
-- Gross revenue from hydrocarbon sales by Kub-Gas increased 149% to $27.1 million (2011 - $10.9 million) of which Cub's 30% was $8.1 million (2011 - $3.3 million); -- Income from the equity investment in KGHL was $1.7 million (2011 - $0.8 million).
Mikhail Afendikov, Chairman and Chief Executive of Cub Energy, commented:
"I am very pleased with the progress Cub has made in the first nine months of the year. We have increased production two-and-a-half times when compared to the same period in 2011.
We continue to make good progress with our program and in our production levels by bringing new wells on-stream, dual completions of existing wells and focusing on our low-risk development of proven and underexploited assets.
With the completion of our workplan for our western assets, the RK Field facilities upgrade, our acceleration of the drilling program on our eastern assets and our program for 2013 in place, we are excited about our prospects for the year ahead. Our focus for the remainder of the year and 2013 will be on the execution of our projects and commencement of the drilling program on our western assets."
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE: KUB) is a Ukraine-focused upstream oil and gas company. Cub has 110,000 net acres, in nine exploration and production licenses, 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. The Company has offices in Houston, Toronto and Kyiv and trades in Toronto under the stock symbol KUB.
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.
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