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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    https://www.nafta.sk/sk/nafta-sa-stala-vitazom-tendra-o-vatazhkivsku-licenciu

    NAFTA became the winner of the tender for Vatazhkivskou license
    Bratislava, October 31, 2019 - NAFTA, through its subsidiary NAFTA RV LLC
    in Ukraine, has participated in a tender for Vatazhkiv license. With its bid in the auction succeeded and obtained
    a license Vantazhkivske near the city of Poltava.

    NAFTA has participated in an online auction offering five licenses covering a total area of more than 700 km 2 . According to the official results of the
    tender, the company was successful with its offer. Once all the conditions and other formal steps have been fulfilled
    , NAFTA will acquire a license for the exploration and subsequent production of hydrocarbons under that license for 20 years. The main objective of the
    company is to use its long-term experience, to comprehensively explore the potential of the license and to identify all extractable stocks.

    NAFTA has been active in Ukraine since 2016, when it acquired fifty percent of its license for exploration and production of hydrocarbons
    in the west of Ukraine with CUB Energy Inc. In this exploration region, NAFTA and its partner carried out a 3D seismic
    survey and in September 2019 began the first exploration well under the Uzhhorod license.


    NAFTA is an international company with extensive experience in the field of storage and construction of underground gas storage
    facilities in Slovakia and also a Slovak leader in the exploration and extraction of hydrocarbons. The company is active in Central
    European countries and is present in the Czech Republic, Germany, Austria and Ukraine. NAFTA
    operates underground storage facilities with a total storage capacity of approximately 60 TWh in several countries, making it the 6th largest
    gas storage operator in Europe, conducting exploration activities and participating
    in renewable energy storage projects .
     
  2. Jon Alba

    Jon Alba Senior Investor

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    Kremlin Confirms Putin to Take Part in Ukrainian Peace Summit in Paris

    https://www.nytimes.com/reuters/2019/11/18/world/europe/18reuters-ukraine-crisis-russia-summit.html

    Kremlin Confirms Putin to Take Part in Ukrainian Peace Summit in Paris

    By Reuters
    Nov. 18, 2019
    Updated 6:28 a.m. ET

    MOSCOW — The Kremlin confirmed on Monday that Russian President Vladimir Putin would take part in a four-way international summit in Paris on Dec. 9, an attempt to advance efforts for a peaceful resolution to the conflict in eastern Ukraine.

    The French presidency said on Friday that the leaders of France, Germany, Russia and Ukraine would take part. But until Monday the Kremlin had failed to publicly confirm its attendance.

    Kremlin spokesman Dmitry Peskov told reporters on Monday that Putin would attend, but declined to discuss what Moscow's expectations for the event were.

    (Reporting by Alexander Marrow and Maria Kiselyova; Editing by Andrew Osborn)
     
  3. Jon Alba

    Jon Alba Senior Investor

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    Cub Energy Inc. Financial Results For Nine Months (In US Dollars. Multiple By 1.33 For CAD Value)
    All information below is available on Sedar

    ASSETS
    Cash: $7,515,000
    Prepaid Expenses: $978,000
    Receivables: $257,000
    Equity Investment: $9,912,000
    Property & Equipment: $4,923,000
    Non-Current Receivables: $842,000
    Total Assets: $24,427,000 (June Asset Value: $23 million, increase of $1.4 million in assets)

    Liabilities
    Payables: $4,022,000
    Loan from KUB-Gas: $5,917,000
    Shareholder Loan: $2,000,000 - From CEO who owns majority of CUB shares
    Provisions: $588,000
    Total Liabilties: $12,527,000 (June Liabilities: $12.444 million)


    MD&A Highlights:

    • The Company reported income from equity investment of $2,350,000 during the nine months ended
    September 30, 2019 as compared to income of $4,953,000 in the comparative 2018 period.
    • The Company reported net income of $260,000 or $0.00 per share during the nine months September
    30, 2019 as compared to net income of $2,508,000 or $0.01 per share during the same period in 2018.
    • The Company recorded $2,790,000 in dividends during the nine months September 30, 2019
    compared with $3,847,000 in dividends in the comparative 2018 period.
    • Production averaged 824 boe/d (97% weighted to natural gas and the remaining to condensate) for
    the nine months September 30, 2019 as compared to 826 boe/d for the 2018 comparative period.
    • Netbacks of $18.49/boe or $3.08/Mcfe were achieved for the nine months September 30, 2019 as
    compared to netback of $27.22/Boe or $4.54/Mcfe for the comparative 2018 period.
    • Achieved average natural gas price of $5.85/Mcf and condensate price of $48.43/bbl during the nine
    months September 30, 2019 as compared to $7.47/Mcf and $59.80/bbl for the same period in 2018.
    • CNG drilled the U101 well that 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. The U101 well obtained valuable subsurface geological and petrophysical data
    that will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on
    the license. This upcoming study may result in revising the drilling priorities for the identified prospect
    inventory.
    • Kub-Gas expects to drill a new well called Makeevskoye-30 (“M-30”). The Makeevskoye licence has
    produced nearly half of the historical production for Kub-Gas. The M-30 well is expected to spud in Q1
    2020.
    • During the quarter ended September 30, 2019, Kub-Gas performed a recompletion of the Olgovskoye18 (“O-18”) well in the B-8-9 reservoir which resulted in a 30% increase in production and the well is
    now producing at a combined rate of approximately 0.9 million cubic feet per day (“MMcf/d”). KubGas uses its own completion equipment and personnel.
    • The Company has determined that the Nitrogen Rejection Unit (“NRU”) requires process
    improvements before it can be deployed to Ukraine. The Company is currently negotiating with
    engineering firms to complete the required modifications.

    Eastern Ukraine KUB-Gas Assets (35%)
    Kub-Gas expects to drill the M-30 well in Q1 2020. The Makeevskoye licence has produced nearly half of the
    historical production for Kub-Gas. The M-30 well will target the M-7 horizon.
    Kub-Gas recompleted the Olgovskoye-7 (“O-7”) well to the M6v which increased its production to 0.6 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. During the quarter ended September 30, 2019, Kub-Gas performed a recompletion of the O18 well in the B-8-9 reservoir which resulted in a 30% increase in production and the well is now producing at
    a combined rate of approximately 0.9 MMcf/d. Kub-Gas uses its own completion equipment and personnel, so
    the costs are associated with materials and outside services as needed for particular activities. There are
    approximately ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in
    the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete
    these additional zones in the existing wells.
    On the West Olgovskoye licence, Kub-Gas expects to commence a 270 km2 3D seismic program in 2020 to
    delineate known structures found from 2D seismic.

    Western Ukraine CNG Assets (50% Interest)
    In western Ukraine, CNG drilled the U101 well that 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. The U101 well obtained valuable subsurface geological and petrophysical data that
    will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on the license.
    This upcoming study may result in revising the drilling priorities for the identified prospect inventory. The costs
    of drilling the first three wells will be incurred 100% by our partner.

    Western Ukraine Tysagaz Assets (100% Interest)
    The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the
    allowable limit stipulated by the gas pipeline operator. The Company is currently selling a modest amount of
    rich gas from a deep well to evaluate the Mesozoic formation on the RK field.
    During the nine months ended September 30, 2019, and due to continued delays in the completion of the NRU,
    the Company and the NRU manufacturer entered into a mutual release agreement, including the release of
    the arbitration claim, in exchange for the Company taking physical possession of the NRU “as is”. The Company
    has determined that the NRU requires process improvements before it can be deployed to Ukraine. The
    Company is currently negotiating with engineering firms to complete the required modifications

    Foreign Currency Translation Income/Loss
    During the third quarter ended September 30, 2019, the foreign currency translation income was $1,832,000
    as compared to a loss of $1,721,000 in the comparative 2018 quarter. The foreign currency translation income
    was $3,011,000 during the nine months ended September 30, 2018 as compared to a loss of $376,000 in the
    comparative 2018 period. The income and losses relate to the revaluation of the Company’s foreign assets and
    liabilities from the local currency (Ukrainian, Canadian and European currencies) to the US dollar in accordance
    with the Company’s accounting policy for the translation of its subsidiaries. The recent foreign currency
    translation income was primarily the result in the strengthening of the Ukrainian Hryvnya against the US dollar.
    The carrying value of the assets of the Ukrainian subsidiaries were materially impacted by the volatility of the
    local currencies in the past. The appreciation/devaluation materially raises/lowers the carrying value of the
    Ukrainian property, plant and equipment and the value of the equity investment in KUB Holdings. These
    gains/losses do not impair the ability of those assets or liabilities to perform their intended purpose.

    Liquidity, Capital Resources and Financings
    At September 30, 2019, the Company had a cash balance of $7,515,000 (December 31, 2018 - $7,236,000) and
    working capital deficit of $1,189,000 (December 31, 2018 – working capital of $3,798,000). The working capital
    was largely impacted by the Kub Gas loans being classified as current liabilities as a result of callable feature
    allowing the loans to be called any time before the maturity date of December 31, 2020. The Kub Gas loans
    amount to $5,917,000. The Company had no long-term debt or capital leases other than the Pelicourt loan.
    The Company has historically been able to raise funds through the issuance of common shares or debt although
    there are no assurances funds will be able in the future.
    The Company has a $2,000,000 secured shareholder loan with Pelicourt, a related party to the Company. The
    shareholders loan bears interest at 12% per annum payable quarterly and the principal of the shareholder loan
    is due on January 31, 2021. Pelicourt was granted security over Gastek which indirectly owns the 35% interest
    in KUB-Gas. The security is available on an event of default and limited only to the amount owing on the
    shareholder loan including principal and interest.


    Outlook
    In eastern Ukraine, Kub-Gas is focused on drilling the Makeevskoye-30 (“M-30”) well in Q1 2020 and evaluating
    additional recompletion operations given the success of recompletions in 2018 and 2019. Kub-Gas expects to
    commence a 3D seismic program in 2020 on the West Olgovskoye licence to delineate known structures found
    from 2D seismic.
    In western Ukraine, CNG is utilizing the valuable subsurface data from the U101 well and refining its model to
    determine the next drilling priorities. The costs of drilling the first three wells will be incurred 100% by our
    partner.
     
  4. Jon Alba

    Jon Alba Senior Investor

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    https://www.themoscowtimes.com/2019/11/28/russia-ukraine-reach-2nd-prisoner-exchange-deal-rbc-a68356 Russia, Ukraine Reach 2nd Prisoner Exchange Deal – RBC 10 hours ago Ukraine and Russia have reached the final stages of an all-for-all prisoner exchange agreement ahead of a key peace summit next month, the RBC news website reported Thursday. Russia and Ukraine swapped 35 prisoners each in September, a move that appeared to presage a thaw in relations that have been frozen since Moscow annexed Crimea in 2014. Kiev and Moscow said afterward that the sides were working on a fresh prisoner swap ahead of a four-way peace summit on the eastern Ukraine conflict set for Dec. 9. Ukraine is ready to hand over 250 prisoners in exchange for 100 prisoners held by pro-Russian rebels in eastern Ukraine, RBC cited four unnamed sources familiar with the negotiations as saying. “The lists have already been agreed and approved,” one of the sources was quoted as saying. “The legal stage is coming to an end.” The new prisoner swap could be adopted when the leaders of France, Germany, Russia and Ukraine meet in Paris on Dec. 9, a source close to the Ukrainian president told RBC. Still, the source close to Volodymyr Zelenskiy and an unnamed negotiator cautioned that the exchange depends on the outcome of the four-way summit. The Sept. 7 exchange included Ukrainian filmmaker Oleg Sentsov, the 24 Ukrainian sailors captured by Russia in the Kerch Strait, potential MH17 crash witness Vladimir Tsemakh and Russian journalist Kirill Vyshinsky. The conflict between pro-Russian rebels and Ukrainian troops in the Donbass has killed 14,000 people since it broke out in 2014, according to the United Nations.
     
  5. Jon Alba

    Jon Alba Senior Investor

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    Ukraine and Russia agree to implement ceasefire



    Ukraine and Russia agree to implement ceasefire

    2 hours ago

    Ukraine and Russia have agreed to implement a "full and comprehensive" ceasefire in eastern Ukraine by the end of 2019, after top-level talks.

    Russian President Vladimir Putin and Ukraine's Volodymyr Zelensky met face to face in Paris on Monday.

    Five-and-a-half years of fighting between Ukrainian government forces and Russian-backed rebels have cost 13,000 lives.

    The negotiations were brokered by the leaders of France and Germany.

    They follow a big prisoner swap and the withdrawal of Ukraine's military from three key areas on the front line.

    What was agreed?

    In a written statement, the countries agreed to the release and exchange of all "conflict-related detainees" by the end of the year.

    The two sides also pledged to disengage military forces in three additional regions of Ukraine by the end of March 2020, without specifying which regions would be affected.

    Additional talks will be held in four month to take stock of the ceasefire's progress.

    At a press conference after the talks in France's Élysée Palace, President Putin hailed the talks as an "important step" towards a de-escalation of the conflict.

    President Zelensky said the issue of Russian gas exports via pipelines through Ukraine had been "unblocked" after a dispute about transit tariffs, and an agreement would now be worked out.

    But Russia and Ukraine continue to disagree on issues such as the withdrawal of Russia-back troops, and elections in areas of Ukraine held by separatist rebels.

    Mr Putin also called for a change in Ukraine's constitution to give special status to the Donbas region, which is held by the rebels.

    Ukraine's President Zelensky also told reporters that Ukraine would not make any territorial concessions in exchange for peace.

    "We saw differences today," said French President Emmanuel Macron, who hosted the talks with German Chancellor Angela Merkel.

    "We didn't find the miracle solution, but we have advanced on it," he added.
     

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