KUB will have Q2 results in 2-3 weeks which should be another profitable quarter. On top of that we should get an update on the JV wells in Western Ukraine, the NRU that was worked on this summer and the recompletion wells. New photos were recently added to the company website showing that things are proceeding with the JV wells as drilling pads are being prepared: http://www.cubenergyinc.com/media_centre/gallery/
CUB ENERGY ANNOUNCES NET EARNINGS OF US $0.8 MILLION FOR FIRST HALF OF 2019 Cub Energy Inc. has released its unaudited interim financial and operating results for the three and six months ended June 30, 2019. All dollar amounts are express 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 are pleased to announce net income $0.8 million during the six months ended June 30, 2019, and receipt of $1.7 million in dividends, plus a further $1.1 million in dividends subsequent to the quarter end. In western Ukraine, the CNG drilling contractor has begun mobilization of the rig for the planned three-well program. All costs for the three wells will be borne 100% by our partner. In addition, in eastern Ukraine, we are pleased to announce that Kub-Gas plans to drill a new well, the M-30 well, in Q4 2019." Operational Highlights Achieved average natural gas price of $6.28/Mcf and condensate price of $45.88/bbl during the six months June 30, 2019 as compared to $7.34/Mcf and $65.18/bbl for the comparative 2018 period. Production averaged 873 boe/d (97% weighted to natural gas and the remaining to condensate) for the six months June 30, 2019 as compared to 819 boe/d for the 2018 comparative period. The CNG drilling contractor has commenced mobilization of its rig for the three-well program on the Uzghorod licence. The costs of drilling will be incurred 100% by our partner.Kub-Gas recompleted the Olgovskoye-7 ("O-7") well to the M6v which increased its production to 0.6 million cubic feet of gas per day ("MMcf/d"). The M6v is a relatively small gas reservoir and the current rate is approximately 0.3 MMcf/d. Kub-Gas also recently recompleted two other wells for a combined additional increase of approximately 0.35 MMcf/d in field production. Kub-Gas uses its own completion equipment and personnel. Financial Highlights The Company reported net income of $0.8 million or $0.00 per share during the six months June 30, 2019 as compared to net income of $1.4 million or $0.00 per share during the same period in 2018.Netbacks of $20.50/boe or $3.42/Mcfe were achieved for the six months June 30, 2019 as compared to netback of $26.45/Boe or $4.41/Mcfe for the comparative 2018 period. The Company received $1.7 million in dividends during the six months June 30, 2019 as compared to $2.4 million in dividends in the comparative 2018 period. Subsequent to the quarter ended June 30, 2019, the Company recorded an additional $1.1 million in dividends from KUBGAS Holdings. Three Three Six Six Months Ended Months Ended Months Ended Months Ended June 30, 2019 June 30, 2018 June 30, 2019June 30, 2018 (in thousands of US Dollars) Petroleum and natural gas revenue 77 18 126 18 Pro-rata petroleum and natural gas revenue(1) 2,485 3,354 5,937 6,781 Revenue from gas trading(2) 2,975 3,079 7,454 8,749 Net income (loss) (205) 596 757 1,375 Income (loss) per share - basic and diluted (0.00) 0.00 0.00 0.00 Funds generated from operations(3) 678 596 643 993 Capital expenditures(4) 9 77 9 211 Pro-rata capital expenditures(4) 302 526 358 861 Pro-rata netback ($/boe) 16.19 26.98 20.5 26.45 Pro-rata netback ($Mcfe) 2.70 4.50 3.42 4.41 June 30,2019December 31, 2018 Cash and cash equivalents 7,429 7,236 Notesro-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 six months ended June 30, 2019, the Company recorded $2,975,000 (2018 - $3,079,000) and $7,454,000 (2018 - $8,749,000) in revenue for gas trading and $2,616,000 (2018 - $2,877,000) and $6,856,000 (2018 - $8,393,000) for the cost of the sales for a net profit from gas trading of $359,000 (2018 - $202,000) and $598,000 (2018 - $356,000), respectively.Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes in non-cash working capital.Capital expenditures includes 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. Management Change Effective September 1, 2019, subject to regulatory approval, the Company has appointed Sergey Panchuk as Chief Operating Officer, replacing Kerry Kendrick. Mr. Kendrick will remain with the Company as a senior advisor. Mr. Panchuk is a mechanical engineer and previously served as the Chief Executive Officer of Kub-Gas from 2006 to 2017. During Mr. Panchuk's tenure at Kub-Gas, the company grew to be the third largest private oil and gas producer in Ukraine. Since 2017, Mr. Panchuk, a resident of Ukraine, has been overseeing the Company's working interests in Ukraine. 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. © 2019 Canjex Publishing Ltd. All rights reserved.
A lot of investors are still ignorant to the fact that Russia will be cutting off Ukraine's natural gas in 4 months. Don't have to be an economist to understand supply/demand metrics here and that prices will sky rocket in that country, making producers like Cub Energy extremely important. https://www.rferl.org/a/kyiv-pursue...tial-russian-gas-transit-cutoff/30118706.html Kyiv Pursues Additional Reverse Gas Flows In Preparation For Potential Russian Gas-Transit Cutoff August 20, 2019 05:36 GMT Ukraine's state-run gas-transport company, Ukrtransgaz, is preparing to open another reverse-flow point for the import of an additional 1.5 billion cubic meters (bcm) of natural gas by January 1 in anticipation of Russia halting gas transit through the country when their contract expires at the end of the year. In an August 19 news release, pipeline operator Ukrtransgaz said the fuel will come from Romania via Ukraine's shared border with Moldova, where gas-metering stations will be upgraded on both sides to accommodate the expected volume of gas. "For Ukraine and Moldova, this project is of strategic importance, because by diversifying the gas-supply routes, both states will increase their dependability and the uninterrupted supply of gas to their customers," Ukrtransgaz said. The additional volume is the equivalent of 15 percent of last year's total imports. However, the 50-kilometer stretch of the modernized gas line will cross Transdniester, Moldova's pro-Russian breakaway region. Ukrtransgaz didn't focus on the issue of Russia possibly interfering with this gas flow. Since Ukraine's gas-transportation system is designed for output, pipelines need to be upgraded to open so-called reverse gas flows. Ukraine already receives gas this way from Slovakia, Poland, and Hungary. Kyiv stopped importing gas from Russia in November 2015 after Moscow invaded Ukrainian territory and annexed its Crimean Peninsula the previous year. Ukrtransgaz said it was currently in talks with its Romanian counterpart, SNTGN Tansgaz, as well as other countries to receive the gas from the Trans-Balkan pipeline. In 2018, Ukraine imported 10.6 billion cubic meters of gas, or one-third of what the country consumed. Fears that Russia's Gazprom will completely stop gas transit through Ukraine next year, when Moscow's Nord Stream 2 pipeline network goes online, are forcing Ukraine to store higher volumes of gas in underground storage facilities ahead of winter. Ukrtransgaz operates 12 gas-storage facilities that have a total capacity of 31 bcm. The company has completed upgrading five gas compressor stations that will allow them to pump gas from reservoirs in western Ukraine to eastern and southern Ukraine. The pipeline operator is owned by state-run Naftogaz Group, a vertically-integrated oil and gas company.
Cub Energy's CNG begins drilling Uzhgorod-101 well 2019-09-16 06:29 MT - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES SPUDDING OF FIRST OF THREE WELLS IN WESTERN UKRAINE CNG LLC, Cub Energy Inc.'s 50-per-cent-owned subsidiary which owns and operates the western Ukraine Uzhgorod licence, has commenced drilling of the Uzhgorod-101 (U-101) well. This is the first well in a three-well drill program for which all costs will be borne 100% by our partner, NAFTA International B.V. ("NAFTA"). The average planned depth of the wells is in range from 1,500 to 1,900 metres to evaluate several prospective horizons identified by 3D seismic. Mikhail Afendikov, Chairman and CEO of Cub said: "The spudding of the U-101 well is a major milestone for Cub. This is a cumulative effort between Cub and NAFTA as we performed 3D seismic, generated an inventory of prospects and are now executing with the drilling of our first exploratory well. These wells all qualify for the reduced 12% royalty." The Uzhgorod licence encompasses approximately 75,000 gross acres. The licence adjoins Cub's 100%-owned producing RK field and is near the producing Ptruksa field located on the Slovakian side of the border. 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. © 2019 Canjex Publishing Ltd. All rights reserved.
Some interesting information I found today. Recently, large cap Canadian company Vermillion Energy purchased almost 600,000 acres of natural gas leases in Eastern Ukraine, right in the same region as Cub Energy: https://www.newswire.ca/news-releas...-six-months-ended-june-30-2019-816869944.html Then I also saw on Vermillion Energy's website that they are partnered in Slovakia with NAFTA, the same partner KUB has right now, drilling the JV wells in the West. In Slovakia, we have partnered with NAFTA, the country's dominant E&P in a farm-in arrangement which grants us a 50% working interest to jointly explore 490,000 acres across two licenses. In Ukraine, we have been awarded two exploration licenses in a 50/50 partnership with Ukrgazvydobuvannya ("UGV“), a Ukrainian state owned gas producer: https://www.vermilionenergy.com/our-operations/europe/central-eastern-europe.cfm The point here is that Vermillion is likely to buy Cub Energy down the road for their production and large lease holdings.
https://ekonomika.sme.sk/c/22215680/nafta-zacala-na-ukrajine-hladat-nove-loziska-plynu.html Diesel began to look for new gas deposits in Ukraine The depth of all three wells will be in the range of 1500 - 1900 meters. 18 Sep 2019 at 14:15 TASR BRATISLAVA. Nafta has started exploration license and is looking for gas fields in western Ukraine. Together with American company Cub Energy Inc. announced the launch of the first of three planned exploration wells under the Uzhgorod license. Reducing dependence on imports The depth of all three boreholes will be in the range of 1500 - 1900 meters, the company said on its website. The Slovak company thus helps Ukraine to reduce its dependence on Russian gas imports. Under the license Uzhhorod Nafta with Cub Energy conducted a 3D seismic survey over an area of 118 square kilometers. As a result, several prospective sites were identified. "We consider working with Cub Energy Inc. to be a successful start to our foreign activities. We particularly appreciate that this partnership has given the opportunity to showcase our extensive experience in areas such as geology, bearing engineering and drilling," said Nafta CEO Martin Bartosovic. Mining license Cub Energy Inc. acquired a 20-year mining license in Uzhgorod covering an area of approximately 300 square kilometers in March 2016. Diesel, through its subsidiary Nafta International BV, entered the Ukrainian market after acquiring 50% of Uzhgorod license three months later. Uzhgorod license is a geological continuation of already explored areas in eastern Slovakia and follows the trend of discovered deposits in Slovakia. Nafta is the sixth largest operator of gas storage facilities in Europe and also a Slovak leader in the exploration and production of hydrocarbons. The company is active in Central European countries and is present in the Czech Republic, Germany and Austria in addition to Slovakia and Ukraine .
New Video From Cub Energy Showing Western JV Well Sites & Drilling http://www.cubenergyinc.com/media_centre/gallery/
Cub finds trace natural gas in first Uzhgorod well 2019-10-21 14:28 MT - News Release Mr. Mikhail Afendikov reports CUB ENERGY ANNOUNCES UPDATE ON DRILLING OF WELLS IN WESTERN UKRAINE Cub Energy Inc. has released results of the drilling of the first well in the Uzhgorod drilling program. The Uzhgorod-101 well showed that the prospective reservoir sands were water saturated with traces of natural gas that indicate there was gas migration, but no viable trapping mechanism in this particular prospect. CNG LLC, Cub's 50-per-cent-owned subsidiary, which owns and operates the western Ukraine Uzhgorod licence, obtained valuable subsurface geological and petrophysical data from the U-101 well that will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on the licence. This upcoming study may result in revising the drilling priorities for the identified prospect inventory. CNG has released the drilling rig while these new data are being analyzed. The Uzhgorod licence encompasses approximately 75,000 gross acres. The licence adjoins Cub's 100-per-cent-owned producing RK field and is near the producing Ptruksa field located on the Slovakian side of the border. The U-101 well was the first well in a planned three-well drill program for which all costs will be borne 100 per cent by Cub's partner. 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. © 2019 Canjex Publishing Ltd. All rights reserved.
Ukraine conflict: Front-line troops begin pullout Ukrainian government troops and Russian-backed separatists have begun withdrawing from a key front-line area in eastern Ukraine. "The separation of forces in Zolote is happening right now," Ukrainian Foreign Minister Vadym Prystaiko said. A separatist official quoted by Russia's RIA news agency said both sides had fired coloured signalling rockets to mark both sides' withdrawal. A deal was agreed this month to end the Donbas region's five-year conflict. Under the deal, both sides were to start withdrawing from their positions in the towns of Zolote and Petrivske on 9 October. But there were skirmishes between Ukrainian police and war veterans, who tried to prevent the troop pullout. Will a deal with Russia bring peace to Ukraine? On 26 October Ukrainian President Volodymyr Zelensky visited the scene and ordered the war veterans to disarm. Mr Prystaiko said shooting in Zolote stopped on 17 October and the withdrawal began on Tuesday once OSCE international monitors were there to check compliance by both sides. Ukraine's military high command confirmed that the withdrawal had begun at 12:00 local time (10:00 GMT). Image copyrightGETTY IMAGES Image caption Military representatives from both sides arranged the withdrawal with the OSCE How did this peace deal come about? For at least two years the fighting has been much less intense than back in 2014. There have been daily exchanges of fire, but the front line has remained generally static. A framework ceasefire deal was agreed in February 2015 - the Minsk agreement - but was soon violated as fighting resumed. This year there have been several significant moves towards a peace settlement: President Zelensky was elected by a big majority, having set a Donbas peace deal as his number one priority In June, Ukrainian troops and separatists withdrew a kilometre from the front-line town of Stanytsia Luhanska In September, a long-awaited prisoner swap with Russia was finally completed On 1 October, Ukraine, Russia and the separatists agreed a deal to bring special status to the separatist-held parts of Donetsk and Luhansk regions (jointly called the Donbas) What could be the next steps? Mr Prystaiko said that if the Zolote disengagement goes according to plan, both sides will also withdraw from their positions in Petrivske within the next 10 days. He also voiced hope that, next month, President Zelensky would meet Russian President Vladimir Putin for peace talks, mediated by the leaders of France and Germany, in what is known as the Normandy format. "Several times already it was postponed for technical reasons, but you see how complicated all this is," he told reporters on Tuesday. "We are doing all we can to make this meeting happen." Media captionSurviving the chaos in Ukraine - and living with the memories The new impetus stems from a plan proposed in 2016 by Germany's then-foreign minister, Frank-Walter Steinmeier, calling for: free and fair elections in the east under Ukrainian law; verification by the OSCE international security organisation; and self-governing status for Donetsk and Luhansk in return. What triggered the conflict? Pro-Russian separatists seized control of large swathes of Donetsk and Luhansk regions in April 2014, just after Russia's annexation of Ukraine's Crimea peninsula. It was an insurgency against the new pro-Western authorities in the capital Kyiv, who had ousted the pro-Russian President Viktor Yanukovych in street protests dubbed the "Maidan Revolution". The separatists later declared independence from Ukraine - but no country has recognised their "republics". Nato and Western intelligence experts have repeatedly accused Russia of sending heavy weapons and combat troops into eastern Ukraine to help the rebels. Russia denies that, but admits that Russian "volunteers" are helping the rebels.
Today VET announced results and also put out a company presentation. Information regarding their Ukraine purchase was unknown until now. But if you compare the presentation information and maps below, you can see that Vermilion is very close to Cub Energy. So keeping an eye on both companies for drill results. In truth, it almost makes more sense for VET to acquire KUB since VET shares the same JV in Slovakia(NAFTA) and have similar mineral leases. They also share directors. https://www.vermilionenergy.com/files/Vermilion_Energy_-_Corporate_Presentation_-_Nov_2019_-_WEB.pdf Awarded two exploration licenses totaling approximately 500,000 gross acres in Ukraine, in a 50/50 partnership with Ukrgazvydobuvannya ("UGV“), a Ukrainian state owned gas producer ► Partnership includes access to technical data, local drilling fleet, and key infrastructure ► Licenses located in one of Europe’s most prolific natural gas basins, the Dnieper-Donets Basin ► Adjacent to several existing multi-TCF gas fields ► Limited application of modern exploration and exploitation technology ► Production sharing agreement has attractive fiscal regime with gas market priced on European imports at Ukrainian hub (TTF premium) ► Modest back-end capital commitment over a 5-year period Compared To KUB: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=4 Transcarpathian Sedimentary Basin (West) ▪ 3 licenses 100% and 50% owned by Cub ▪ 108,000 gross acres (70,500 net) Dnieper-Donets Sedimentary Basin (East) ▪ 6 licenses 35% owned by Cub ▪ 203,000 gross acres (71,000 net acres)
