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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    HOUSTON, TX / ACCESSWIRE / May 15, 2019 / Cub Energy Inc. ("Cub" or the "Company") (TSX-V: KUB), a Ukraine-focused upstream oil and gas company, announced today its unaudited interim financial and operating results for the three months ended March 31, 2019. 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: "We wish to report net income $1.0 million during the three months ended March 31, 2019 and recorded $1.7 million in dividends from its eastern Ukraine investment. Kub-Gas successfully maintained deliverability of over 14 million cubic feet per day during the first quarter of 2019. In western Ukraine, preparatory works are underway for the first three wells on the jointly owned Uzhgorod license, expected to be drilled this year. All three wells are to be financed 100% by our partner. "

    Financial Highlights

    The Company reported net income of $1.0 million or $0.00 per share during the three months March 31, 2019 as compared to net income of $0.8 million or $0.00 per share during the same period in 2018.

    Netbacks of $24.49/boe or $4.08/Mcfe were achieved for the three months March 31, 2019 as compared to netback of $25.93/Boe or $4.32/Mcfe for the comparative 2018 period.

    The Company recorded $1.7 million in dividends during the three months March 31, 2019 compared with $1.0 million in dividends in the first quarter of 2018.

    Operational Highlights

    Kub-Gas recompleted the Olgovskoye-7 ("O-7") well during 2019 and it is currently being tested.

    Achieved average natural gas price of $7.11/Mcf and condensate price of $42.57/bbl during the three months March 31, 2019 as compared to $7.16/Mcf and $60.60/bbl for the first quarter of 2018.

    Production averaged 895 boe/d (97% weighted to natural gas and the remaining to condensate) for the three months March 31, 2019 as compared to 837 boe/d for the 2018 first quarter.

    The Company and its partner plan to drill a three-well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions. To date, the long-lead items for drilling have been delivered and road construction to the drill pads has commenced. The costs for the first three wells are financed 100% by our partner.

    In eastern Ukraine, Kub-Gas is focused on additional recompletion operations given the success of the O-3 and O-9 recompletions in 2018. The O-7 recompletion was performed in 2019 and is awaiting testing. Three other recompletion opportunities are in the permitting phase. Kub-Gas may drill one additional well in late 2019 on the Makeevskoye Licence and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic.

    In western Ukraine, the Company and its partner plan to start a three-well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The three-well program is to be financed 100% by our partner.

    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.

    For further information please contact us or visit our website: www.cubenergyinc.com

    Mikhail Afendikov
    Chairman and Chief Executive Officer
    (713) 677-0439
    [email protected]

    Patrick McGrath
    Chief Financial Officer
    (713) 577-1948
    [email protected]
     
  2. Jon Alba

    Jon Alba Senior Investor

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  3. Jon Alba

    Jon Alba Senior Investor

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    Regarding KUB, the new Ukrainian president today said his top priority is peace with the rebels in Eastern Ukraine. This means if it happens, the area will be secured and KUB can drill without any worry or issue. This also includes investors looking at the company in a different light and bringing back value, especially since Cub Energy trades at a major discount compared to it's earnings and growth potential through drilling.

    https://www.washingtonpost.com/worl...233fe5811ef_story.html?utm_term=.2b7dfa84edf2
     
  4. Jon Alba

    Jon Alba Senior Investor

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    I was referred to some interesting notes regarding KUB and I missed this because it was in the financials as a note and not the MD&A. Keep in mind that Cub Energy Inc holds 35% of KUB Holdings and increasing that to 40%(5% increase) would be a significant revenue boost given current production AND all the wells being worked on now.

    Per Note 1, the Company has the ability to further increase its ownership interest in KUB Holdings from 35%
    to 40% on meeting certain benchmarks and optional payments. The Company can earn an additional 2.5%
    ownership interest when the majority owner of KUB Holdings has received a cumulative $25,000 in dividends
    from KUB Holdings of which they have received $16,873 as at March 31, 2019. The Company also has an
    option to purchase, within one year of the above-mentioned 2.5% transfer from the majority owner, a further
    2.5% ownership interest in KUB Holdings at a price equal to 2.5% of the net present value of 2P reserves of
    KUB-Gas at a 10% discount at the time of exercise.

    Another note to follow given the excess of cash in the bank for KUB.V:

    During the year ended December 31, 2018 and the three months ended March 31, 2019, the Company
    purchased Guaranteed Investment Certificates with a Canadian financial institution with annual interest rates
    between 2.26% and 2.5% that are redeemable at any time
     
  5. Jon Alba

    Jon Alba Senior Investor

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    Vermilion, Aspect and EPH submitted bids for oil and gas acreage in Ukraine & Ukraine boosts gas imports by 19% in Jan-May 2019
    Vermilion, Aspect and EPH submitted bids for oil and gas acreage in Ukraine - https://www.worldoil.com/news/2019/...itted-bids-for-oil-and-gas-acreage-in-ukraine
    Ukraine boosts gas imports by 19% in Jan-May - https://www.unian.info/economics/10574277-ukraine-boosts-gas-imports-by-19-in-jan-may.html
    UKRAINE INCREASES GAS INVENTORIES BY 2 BCM IN MAY - https://open4business.com.ua/ukraine-increases-gas-inventories-by-2-bcm-in-may/
     
  6. Jon Alba

    Jon Alba Senior Investor

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    Chens Picks NYC - KUB June 2019 Update

    https://www.chenpicks.com/

    June 2019 (Starts At 18:30) :


    Note - Chen fails to mention the RK field requiring the NRU unit. This well was producing 400boed and 100% owned by Cub Energy. Once in production later this year, it can increase significant cash flow.
     
  7. Jon Alba

    Jon Alba Senior Investor

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    June 19th 2019 Interview: Majors expected back in hunt for Ukraine gas as activity picks up

    https://www.spglobal.com/platts/en/...-in-hunt-for-ukraine-gas-as-activity-picks-up

    London — International energy majors will be tempted back to Ukraine to drill for gas in the future, according to the head of the country's gas industry association, on the back of a period of intense exploration activity in the eastern European nation.

    Ukraine, whose gas production has been steady at some 20 Bcm/year for the past 25 years, has vast untapped potential in its onshore blocks -- both for conventional and unconventional resources -- as well as in the Black Sea.

    New exploration has been hampered in the past by the lack of a transparent licensing process and concern over political instability. But Ukraine is now looking to attract international companies back to the upstream through a series of tenders and license rounds for blocks.

    "The majors will come. It is just a matter of time," Roman Opimakh, the executive director of the Association of Gas Producers of Ukraine, said in an interview.

    Big hitters such as Chevron and Shell came to Ukraine in the early 2010s in an attempt to develop the country's unconventional gas resources, but none remain.


    Drilling resurgence

    Despite that, the upstream in Ukraine is enjoying a resurgence with 84 active rigs drilling exploration, development and production wells in the country -- almost half of the 186 rigs operational in Europe -- according to Baker Hughes.

    "The number of wells drilled in Ukraine has increased significantly since 2017," Opimakh said. "Many positive reforms have been introduced for the upstream industry in the past two years."

    Last year more than 150 wells were spudded, mostly in eastern Ukraine where reserves are located at deeper intervals of more than 5,000 meters.

    "The domestic fleet of rigs has been modernized and sophisticated rigs are coming to replaced outdated equipment," Opimakh said, adding that foreign outsourced contractors were also contributing resources.

    The increased activity could help Ukraine boost its domestic gas production as the government looks to eliminate imports, which currently all come from Europe after it halted direct Russian gas purchases in November 2015. Domestic gas production has edged up in recent years, reaching 20.9 Bcm in 2018.

    Opimakh expected it would take "5-6 years" for Ukraine to become self-sufficient in gas -- meaning Ukraine could produce all the gas it needs by 2024 -- assuming annual demand remained in the range of 30-32 Bcm.

    In a bid to boost exploration yet further, some 36 blocks have been offered in 2019 in two tenders for 50-year production sharing agreements and three license rounds for 20-year exploration contracts.

    The PSA tenders have attracted the most international interest, with bids from Canada's Vermilion Energy, US-based Aspect Energy, Slovakia's Nafta and Poland's Unimot.

    The deadline for bids for the nine onshore blocks was May 28 and for the offshore Dolphin block was June 12, with results of both expected within one month of their deadlines (June 28 and July 12, respectively).

    Opimakh said four companies had submitted bids for the Dolphin block, located in the shallow waters of the Black Sea.

    "There is significant interest, especially taking in account ongoing political elections in Ukraine," he said.


    License rounds

    As well as the PSA tenders, three rounds of bidding for smaller exploration licenses have been held, hosted on an open electronic platform to ensure full transparency following accusations of wrongdoing in previous contract awards to upstream companies in the country.

    A total of 26 blocks were offered, with 16 block licenses awarded. Some 10 of the blocks across the three rounds received no bids.

    The big winner in the three bid rounds was Ukraine's state-owned UkrGasVydobuvannya (UGV), a subsidiary of Naftogaz Ukrayiny, with a total of 13 blocks awarded.

    The other three were awarded to private Ukraine-based upstream companies: Burisma, DTEK, and Yedyna Oil & Gas.

    A further six blocks were expected to be auctioned at a later date along with the 10 blocks not awarded in the first three rounds.

    The 36 blocks offered so far -- including those in the PSA tenders -- cover a combined acreage of some 25,000 sq km and are all in well-developed petroleum provinces of Ukraine, Opimakh said.

    "The chance of making a discovery is high," he said.


    Asked what obstacles there were to even more upstream activity in Ukraine, Opimakh said the country still needed to "simplify the access to geological data" to attract more investors.

    -- Stuart Elliott, [email protected]

    -- Edited by Dan Lalor, [email protected]
     
  8. Jon Alba

    Jon Alba Senior Investor

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  9. Jon Alba

    Jon Alba Senior Investor

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  10. Jon Alba

    Jon Alba Senior Investor

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    https://smallcappower.com/top-stories/canadian-oil-and-gas-stocks-momentum/

    The Canadian oil and gas stocks we’ve identified with market caps under $1B have demonstrated strong price momentum of late
    SmallCapPower | July 18, 2019: Today we have drilled down and discovered four Canadian oil and gas stocks that have seen strong stock-price momentum thus far in 2019. We compared both the 30 day and year-to-date returns of oil & gas companies trading in Canada with a market cap under $1B and pinpointed four companies that have impressed us the most.

    *Share prices as at close Tuesday, July 16, 2019, data obtained from S&P Capital IQ

    Cub Energy Inc. (TSXV:KUB) – $0.09
    Oil and Gas Exploration and Production

    Cub Energy has 311,000 gross acres in two prospective basins in Ukraine. KUB is focused on growing its acreage position in strategic basins in Ukraine. Cub aims to develop this asset portfolio to take advantage of natural gas prices by applying western equipment and expertise to prospective and underexplored basins. Learn more about Cub Energy here.

    Market Cap: $26.7M
    30 Day Return: 30.8%
    YTD Return: 240%
    Average 90 Day Trading Volume: 490,000
     

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