Tpnef - Cub Energy Inc.

Discussion in 'Penny Stocks' started by Jon Alba, Apr 24, 2019.

  1. Jon Alba

    Jon Alba Senior Investor

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    FT: Putin's new Ukraine man lifts hopes of peace progress in Kyiv

    10:19, 30 January 2020 WORLD 1577 0 People close to the peace talks said the changes were intended to formalise Mr. Kozak's emergence as Mr. Putin's lead negotiator on Ukraine.

    https://www.unian.info/world/108519...an-lifts-hopes-of-peace-progress-in-kyiv.html

    Vladimir Putin's promotion of a crucial figure driving peace talks with Ukraine has been welcomed by Kyiv as a signal of renewed willingness in Moscow to resolve the six-year conflict between the two countries. Dmitry Kozak, a former deputy prime minister, was appointed to a newly created position in the presidential administration last week as part of sweeping changes in the Kremlin that analysts said were designed to lengthen Mr. Putin's rule, according to the Financial Times. The announcement was followed by the reported resignation of Vladislav Surkov, Mr. Putin's chief negotiator on Ukraine.

    People close to the peace talks said the changes were intended to formalise Mr. Kozak's emergence as Mr. Putin's lead negotiator on Ukraine. Mr. Kozak oversaw two landmark prisoner exchanges last year that were widely hailed as progress in efforts to bring an end to the conflict between Ukraine and Russia-backed armed forces. The conflict in eastern Ukraine, which started with Russia's annexation of Crimea from Ukraine in 2014, has claimed 14,000 lives.

    Mr. Kozak has also helped resurrect four-party peace talks led by France and Germany. The so-called "Normandy four" negotiations resumed last month after years of stalling under Mr. Surkov. "Surkov was playing interference. If he is really gone this is good," said a person close to Ukrainian president Volodymyr Zelensky.

    Mr. Kozak will now have to reconcile Ukraine's efforts to reclaim the two Moscow-backed breakaway states on its border with Russia. Mr. Zelensky has refused to grant the regions lasting autonomy – a move seen in Ukraine as giving Russia a veto over Kyiv's pro-western foreign policy – and instead wants to include them in a planned decentralisation reform. "Surkov was [driving] a policy of weakening Ukraine and preventing the signature of future EU and Nato agreements by politically destabilising the territory," a person familiar with the peace talks said. "Now we are more into managing the process on the ground. [ . . .] It's a more pragmatic approach. Kozak is a stronger administrator and good on the economy." But other people close to the talks cautioned that Mr. Putin, who has shown no sign of easing pressure on Ukraine, will remain the ultimate decision maker. "Zelensky's guys just associate all the problems with Surkov. They don't get who they're dealing with," the former Kremlin colleague said. "Of course they won't give the territories back. It's a fantasy."
     
  2. Jon Alba

    Jon Alba Senior Investor

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    Looks like the M30 well missed unfortunately, but KUB had $7.5 million USD in cash and this well cost them around $500,000 to do. That means they still have 3 cents a share in cash, no value given on producing assets or additional projects ongoing. A new company presentation came out today and clearly shows they have a lot on the go. So not sure how their first free JV well in September and this recent well destroyed 80% of the company value when they are still up in cash year over year and Ukraine is starting to push a peace effort through.

    February 2020 presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf

    Recent news:


    Cub Energy interest Kub-Gas to abandon M-30 well

    2020-02-28 07:52 MT - News Release


    Mr. Mikhail Afendikov reports

    CUB ENERGY INC. ANNOUNCES UPDATE ON THE M-30 WELL IN EASTERN UKRAINE

    Kub-Gas LLC, Cub Energy Inc.'s 35-per-cent-owned subsidiary, which owns and operates the eastern Ukraine licences, has drilled the Makeevskoye-30 well to a total depth of 1,985 metres. Logging was performed on several horizons and was evaluated as having non-commercial gas shows. The well will be abandoned and Kub-Gas is reviewing its options for its next operation.

    About Cub Energy Inc.

    Cub Energy is an upstream oil and gas company with a proven record of exploration and production cost-efficiency in Ukraine.

    We seek Safe Harbor.


    © 2020 Canjex Publishing Ltd. All rights reserved.
     
  3. Jon Alba

    Jon Alba Senior Investor

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    Cub signs contract to purchase power generation engines

    2020-04-15 06:49 MT - News Release

    Mr. Mikhail Afendikov reports

    CUB ENERGY INC. ANNOUNCES CAPITAL COMMITMENT TO RESTART THE RK FIELD FOR POWER GENERATION

    Cub Energy Inc.'s 100-per-cent-owned subsidiary, Tysagaz LLC, has signed a contract for the purchase of two Jenbacher gas power generation engines that should convert the natural gas produced from the RK field into power that can be sold in western Ukraine at local market rates. Each power generation unit will have the capacity to produce as much as 1.5 megawatts ("MW") of power each or 3 MW in total. The RK field was materially suspended on April 1, 2016 and this new plan should result in the restart of the RK field.

    The Jenbacher units will be manufactured in Europe and expected delivery is in the fourth quarter of 2020 with power revenue expected in the first quarter of 2021. The successful sale of power into the local grid will be subject to the successful installation of the Jenbacher units, regulatory commissioning and tie-in to the local power supply. The direct capital costs of the two units are approximately US$1.4 million and the total investment is expected to be approximately US$1.9 million. The total investment amount includes approximately $0.3 million in Value Added Tax (VAT) which should be refunded on commercial production. There are approximately 60 of these power generators units currently in operation in Ukraine.

    Mikhail Afendikov, Chairman and CEO of Cub said: "We reviewed various alternatives to maximize the value of the RK field and we believe the Jenbacher power generation is the best path for shareholders. It has the potential to generate material cashflow while at the same time capitalizing on the restart of the RK field."

    Currently, all of the Company's facilities remain fully operational. The company is monitoring recommendations by the public health authorities related to COVID-19 in all its operating regions and is adjusting operational requirements as required. The Company has implemented certain cost-cutting initiatives during the second quarter of 2020, including the layoff of eleven team members, salary adjustments of up to 25% and a general reduction in the use of external consultants.

    About Cub Energy Inc.

    Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gas and power generation company, with a proven track record of exploration and production cost efficiency in Ukraine. 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 energy assets.

    We seek Safe Harbor.

    © 2020 Canjex Publishing Ltd. All rights reserved.
     
  4. Jon Alba

    Jon Alba Senior Investor

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    Article : Cub Energy JV Partner Moves Forward In Ukraine

    Nafta has obtained a mining license in Ukraine

    The Ukrainian government decided on Wednesday.

    https://ekonomika.sme.sk/c/22395869/spolocnost-nafta-ziskala-licenciu-na-tazbu-na-ukrajine.html

    May 1, 2020 at 11:26 AM SITA

    BRATISLAVA. The company Nafta, which operates gas storage facilities in Slovakia and is engaged in the exploration and extraction of hydrocarbons, is consolidating its position in Ukraine.

    EP Ukraine, in which Nafta has a 10% share and Energetický a průmyslový holding (EPH) has a 90% share, has obtained a license to explore and extract mainly natural gas in the Ukrainian projects Grunivska and Ochtyrska.

    The Ukrainian government decided on Wednesday.

    Two mining sites

    As EPH further informed through the portal of the Slovak Gas and Oil Association slovgas.sk, its subsidiary EP Ukraine was selected on the basis of evaluation criteria developed by experts, international consulting companies and energy organizations.

    "We welcome the opportunity to use our financial and technological advantages in the dynamic development of the Ukrainian energy sector," said EP Ukraine in response.

    EP Ukraine will now launch an extensive investment program, including in the first phase the implementation of seismic measurements and the drilling of a significant number of exploratory wells. For the supply of services and materials will use local Ukrainian companies and experts.

    The Grunivska project is located in the Sumy and Poltava self-governing areas and covers an area of almost 1,100 square kilometers.

    The Ochtyrska project with a total area of 670 square kilometers extends on the border of the Sumy, Poltava and Kharkiv self-governing regions.

    Diesel will be involved in the development of mining

    Nafta, as a Central European leader in the production and storage of oil and natural gas with more than 105 years of experience, is ready to ensure the active development of individual licenses for the exploration and production of hydrocarbons, especially natural gas, in the Ukrainian project.

    Last year, through its subsidiary Nafta RV LLC, it participated in the tender for Vantazhkivsk's license.

    With its bid in the auction, it succeeded and obtained the right to a Vantazhkivske license near the town of Poltava.

    Diesel also started last year with Cub Energy Inc. to implement the first of three planned exploratory wells near Uzhhorod.

    The Slovak company Nafta, through its subsidiary Nafta International BV, entered the Ukrainian market about four years ago after obtaining 50 percent in the Uzhhorod license.

    Since then, the partners have been working on a joint project aimed at exploring the Uzhhorod license in western Ukraine.

    The Uzhhorod license is a geological continuation of highly explored areas in eastern Slovakia and copies the trend of discovered deposits in Slovakia.

    As the main shareholder of EP Ukraine, EPH is active in the Czech Republic, Slovakia, Germany, France, the United Kingdom, Ireland , Italy , Poland and Hungary. The holding covers the entire spectrum of energy production and distribution.
     
  5. Jon Alba

    Jon Alba Senior Investor

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    So as we expected, Q1 was not going to be good. Reason being that around $500,000 USD was spent on the M30 well and that was factored into this quarter. At the same time, KUB has $6.1 million USD in cash(minus $1.7 mil with RK field equipment purchase as of recent), and then the company presentation below shows work happening on all 5 leases this year. On top of that, cost cutting measures were implemented(see below) where 11 team members were layed off, not sure if that includes the $60k a year director, along with other savings. So I feel that the cost reductions will help a lot.

    New company presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=4.2

    2020-05-21 14:49 MT - News Release


    Mr. Mikhail Afendikov reports


    CUB ENERGY ANNOUNCES FIRST QUARTER OF 2020 RESULTS


    Cub Energy Inc. has released its unaudited financial and operating results for the interim three months ended March 31, 2020. All dollar amounts are expressed in United States Dollars unless otherwise noted. This update includes results from Kub-Gas LLC ("Kub-Gas"), which Cub has a 35% equity ownership interest, Tysagaz LLC ("Tysagaz"), Cub's 100% owned subsidiary and CNG LLC ("CNG"), which Cub has a 50% equity ownership interest.


    Mikhail Afendikov, Chairman and CEO of Cub said: "In April 2020, we made a capital commitment to purchase two Jenbacher power generation units in order to better utilize the Company's RK field in western Ukraine to generate potential cashflow for the Company."


    Operational Highlights

    • Achieved average natural gas price of $3.45/Mcf and condensate price of $36.25/bbl during the three months March 31, 2020 as compared to $7.11/Mcf and $42.57/bbl for 2019. The decrease is due, in large part, to increased volumes of gas stored in Europe and a warmer than expected winter in Europe.
    • Production averaged 646 boe/d (97% weighted to natural gas and the remaining to condensate) for the three months March 31, 2020 as compared to 895 boe/d for 2019.
    • In April 2020, the Company has signed a contract for the purchase of two Jenbacher gas power generation engines that should convert the natural gas produced from the RK field into power that can be sold in western Ukraine at local market rates. Each power generation unit will have the capacity to produce as much as 1.5 megawatts ("MW") of power each or 3 MW in total. The RK field was materially suspended on April 1, 2016 and this new plan should result in the restart of the RK field.
    Financial Highlights

    • The Company reported a net loss of $706,000 or $0.00 per share during the three months March 31, 2020 as compared to net income of $962,000 or $0.00 per share during 2019.
    • Netbacks of $5.40/boe or $0.90/Mcfe were achieved for the three months March 31, 2020 as compared to netback of $24.49/Boe or $4.08/Mcfe for 2019.
    • The Company has implemented certain cost-cutting initiatives during the second quarter of 2020, including the layoff of eleven team members, salary and director fee reductions, the signing of office leases at lower rent levels and a general decrease in the use of external consultants.
    Reader Advisory

    With the current cash resources, negative working capital, suspension of the RK field, uncertainty surrounding the successful installation of the Jenbacher power generation units, fluctuating commodity prices, dividend uncertainty, currency fluctuations, reliance on a limited number of customers, and impact on carrying values, the Company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the Company to continue as a going concern and meet its obligations as they become due.

    Three Months Ended Three Months Ended
    (in thousands of US Dollars) March 31, 2020 March 31, 2019
    Petroleum and natural gas revenue 66 49
    Pro-rata petroleum and natural gas revenue(1) 1,262 3,452
    Revenue from gas trading(2) 2,204 4,479
    Net income (loss) (706) 962
    Income (loss) per share - basic and diluted (0.00) 0.00
    Funds generated from (used in) operations 350 (35)
    Capital expenditures(3) - -
    Pro-rata capital expenditures(3) 851 56
    Pro-rata netback ($/boe) 5.40 24.49
    Pro-rata netback ($Mcfe) 0.90 4.08

    March 31, 2020 December 31, 2019
    Cash and cash equivalents 6,100 6,206

    Notes:

    • Pro-rata petroleum and natural gas revenue is a non-IFRS measure that adds the Company's petroleum and natural gas revenue earned in the respective periods to the Company's 35% equity share of the KUB-Gas natural gas sales that the Company has an economic interest in.
    • During the three and twelve months ended March 31, 2020, the Company recorded $2,204,000 (2019 - $4,479,000) and $2,070,000 (2019 - $4,240,000) in revenue for gas trading and $134,000 (2019 - $239,000).
    • Capital expenditures include the purchase of property, plant and equipment and the purchase of exploration and evaluation assets. Pro-rata capital expenditures are a non-IFRS measure that adds the Company's capital expenditures in the respective periods to the Company's 35% equity share of the KUB-Gas and 50% equity share of CNG Holdings capital expenditures that the Company has an economic interest in.
    Supporting Documents


    Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated Management's Discussion and Analysis, have been filed on SEDAR (www.sedar.com) and has been posted on the Company's website at www.cubenergyinc.com.

    About Cub Energy Inc.


    Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. 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.


    We seek Safe Harbor.


    © 2020 Canjex Publishing Ltd. All rights reserved.
     
  6. Jon Alba

    Jon Alba Senior Investor

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  7. Jon Alba

    Jon Alba Senior Investor

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    2020-11-17 15:45 MT - News Release


    Mr. Mikhail Afendikov reports

    CUB ENERGY ANNOUNCES THIRD QUARTER OF 2020 RESULTS

    Cub Energy Inc. has released its unaudited financial and operating results for the interim nine months ended Sept. 30, 2020. All dollar amounts are expressed in United States Dollars unless otherwise noted. This update includes results from Kub-Gas LLC, which Cub has a 35-per-cent equity ownership interest, Tysagaz LLC, Cub's 100-per-cent-owned subsidiary, and CNG LLC, which Cub has a 50-per-cent equity ownership interest in.

    Mikhail Afendikov, chairman and chief executive officer of Cub, said: "We are pleased to report the two Jenbacher units have arrived on site on the RK field and currently undergoing the installation, commissioning and ultimately connecting to the power grid. The company plans to have the units commercially operative in early 2021."

    Operational highlights



    • Achieved average natural gas price of $3.59/thousand cubic feet (Mcf) and condensate price of $40.33/barrel (bbl) during the nine months Sept. 30, 2020, as compared with $5.85/Mcf and $48.43/bbl for 2019. The decrease is due, in large part, to increased volumes of gas stored in Europe, a warmer-than-expected winter in Europe and the impact of COVID.
    • Production averaged 638 boe/d (97 per cent weighted to natural gas and the remaining to condensate) for the nine months Sept. 30, 2020, as compared with 873 barrels of oil equivalent per day (boe/d) for 2019.
    • In April, 2020, the company has signed a contract for the purchase of two Jenbacher gas power generation engines that should convert the natural gas produced from the RK field into power that can be sold in Western Ukraine at local market rates. The two units were manufactured and delivered to the RK field in late October, 2020, to begin installation and commissioning. Each power generation unit will have the capacity to produce as much as 1.5 megawatts (MW) of power or three MW in total. The RK field was materially suspended on April 1, 2016, and this new plan should result in the restart of the RK field.


    Financial highlights



    • The company reported a net loss of $2,274,000 or one cent per share during the nine months Sept. 30, 2020, as compared with net income of $260,000 or zero cents per share during 2019.
    • Netbacks of $9.13/boe or $1.52/Mcfe were achieved for the nine months Sept. 30, 2020, as compared with netback of $18.49/boe or $3.42/Mcfe for 2019.
    • The company has implemented certain cost-cutting initiatives during the second and third quarters of 2020, including the layoff of 11 team members, salary and director fee reductions, the signing of office leases at lower rent levels, and a general decrease in the use of external consultants.


    Reader advisory



    • With the current cash resources, negative working capital, suspension of the RK field, uncertainty surrounding the successful installation of the Jenbacher power generation units, fluctuating commodity prices, dividend uncertainty, currency fluctuations, reliance on a limited number of customers and impact on carrying values, the company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the company to continue as a going concern and meet its obligations as they become due.


    [​IMG]
    Supporting documents

    Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated management's discussion and analysis, has been filed on SEDAR and has been posted on the company's website.

    About Cub Energy Inc.

    Cub Energy is an upstream oil and gas company with a proven record of exploration and production cost-efficiency in Ukraine. 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.

    We seek Safe Harbor.
     
  8. Jon Alba

    Jon Alba Senior Investor

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    New company presentation from Cub Energy below. Keeping in mind that their RK Field project after 5 years will be going into production in the next 60 days. Rather than the RK field producing natural gas, it will now produce electricity (converted from high nitrogen natural gas) which is in more demand and more lucrative in Ukraine. This project is 100% owned by the company and they had to write off tens of millions of dollars in the past because they couldn’t get their NRU unit completed. Therefore, this will add tremendous shareholder value once producing, as it should be added back to the balance sheet as a productive asset. Below is information on the two RK wells which both produced over 2MMCF, or a total of 777boed.

    http://www.cubenergyinc.com/_resources/corporate-presentation.pdf

    Cub Energy Annual Information 2020

    Page 27: RK field: proven commercial production currently shut-in since April 1, 2016 due to its inability to meet pipeline specifications; but began selling rich gas from a deep well (RK1) in the Mesozoic formation resulting in minor production in 2017, 2018 and 2019. Given the low rate of production for the past three years and unspecified future date of commercial production, proven reserves are classified as contingent resources should commercial production begins again.

    Cub Energy 2019 Management Discussion (Released March 2020)

    There were impairment charges that impacted net losses in 2019. During the quarter ended December 31, 2019, the Company recorded impairment charges due to the carrying value of its petroleum and natural gas assets exceeding the net present value of expected future cash flows using a discount rate of 26%. The high discount rate relates to the local discount rate in Ukraine and related country risk at that time. During the fourth quarter of 2019, the Company took a $5,014,000 impairment charge relating to the RK field and an impairment on its equity investment in Kub Holdings of $5,864,000. During the year ended December 31, 2017, the Company recorded impairment charges due to the carrying value of its petroleum and natural gas assets exceeding the net present value of expected future cash flows using a discount rate of 26%. The high discount rate relates to the local discount rate in Ukraine and related country risk. During 2017, the Company took a $5,300,000 impairment charge relating to the RK field and an impairment on its equity investment in Kub Holdings of $10,700,000.

    News Release Cub Energy Inc. Q4 Operations Update and RSU Grant Houston, Texas – January 23, 2015 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB) announces fourth quarter production and operational update, including a 2014 exit rate of approximately 2,407 barrels of oil equivalent (“boe/d”) (a 16% increase over the Company’s 2013 exit rate of 2,070 boe/d). This update includes ongoing operations from KUB-Gas LLC (“KUBGas”), which Cub has a 30% ownership interest, and Tysagaz LLC (“Tysagaz”), Cub’s 100% owned subsidiary. Fourth Quarter Production Average production for the fourth quarter was approximately 2,112 boe/d, representing a 3% decrease from 2,174 boe/d in the third quarter of 2014 and a 25% increase over the 2013 fourth quarter average production of 1,687 bod/d. Production for the first 20 days of January has averaged 2,063 boe/d. Production increased in the fourth quarter as a result of the Rusko-Komarovske 23 (“RK-23”) well that tested gas at a rate of over 2.3 million cubic feet per day (“MMcf/d”) through an eight millimetre choke in November 2014 and was subsequently tied in. The RK-23 well is 100% owned and operated by Cub in western Ukraine. The RK-23 well produced an average of 2.1 MMcf/d during the latter half of the fourth quarter. Production at KUB-Gas decreased during the fourth quarter by approximately 11% substantially due to: · The existing surface facilities are having difficulty meeting sales gas dew point specifications, and some wells have been choked back. This will be addressed with new compression in the Olgovskoye field due to be installed in May 2015. · The M-16, M-17 and O-12 wells were shut in for approximately three days each for their annual build-up tests. · M-16 was shut in in November to recomplete the well to the S5 zone, as it was determined that the M-17 well is capable of fully draining the S6 pool in which both wells were originally completed. M-22 Drilling Update and RK-21 Workover As previously disclosed, the KUB-Gas M-22 well reached TD in late December, and logs and drilling data indicate 18 metres of net pay in two zones, including the S13a, which has not been previously tested in the area. The well also encountered four other zones with aggregate thickness of 22 metres that have resource potential. The well has been cased and completion and testing is ongoing. A flowline was pre-built earlier in 2014, and the tie-in is anticipated to be finished by the first quarter of 2015, pending regulatory approvals. The RK-21 well, originally completed in a single zone in May of 2014, indicated the presence of a number of potentially productive intervals that could be added to maintain a steady rate of production from the well. Rather than completing all of the intervals at the same time, management decided to open additional intervals to maintain a reasonable steady production 2 stream from the well. Recently, the company added the fourth, fifth and sixth sets of perforations to the well. The well responded favorably by displaying an immediate increase in flowing tubing pressure with a corresponding increase of production from a 5-day average of 0.8 MMcf/d to over 2.6 MMcf/d for the subsequent 5-day period. These perforations were added over a two-day period at small incremental cost.
     
  9. Jon Alba

    Jon Alba Senior Investor

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    Ukraine natural gas prices are back to $7.50 an MCF as per the link below.

    https://www.ueex.com.ua/eng/exchange-quotations/natural-gas/medium-and-long-term-market/


    If you look at past prices and profitability, Cub Energy was making good money when pricing was over $7 an MCF. Add in the cost cut measures put in place this year and the RK field about to go into production, there is some good upside coming.


    January 2021 7 540,06 7 443,85 7 573,23
    December 2020 6 329,75 5 943,76 6 344,48
    November 2020 6 101,31 6 186,71 6 039,92
    October 2020 5 983,81 6 051,61 5 555,96
    September 2020 4 702,90 4 521,84 4 853,50
     
  10. Jon Alba

    Jon Alba Senior Investor

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