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   Gold/Mining/EnergyKUB.V - Cub Energy Inc.


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From: JRod775/8/2019 12:14:34 PM
   of 68
 
One well was put into production in Q4 that is averaging 220boed. 10 More wells possible just from just that one location. Then add in their other projects like the JV, NRU, etc.
Cub Energy recompletes Olgovskoye-3 well in Ukraine

2018-11-20 07:52 MT - News Release

Mr. Mikhail Afendikov reports

CUB ENERGY INC. ANNOUNCES THE SUCCESSFUL RECOMPLETION OF THE O-3 WELL IN EASTERN UKRAINE

Cub Energy Inc.'s KUB-Gas LLC, owner and operator of the eastern Ukraine licences, has released results of its recent recompletion of the Olgovskoye-3 well.

Kub-Gas utilized its own workover rig and crew to recomplete a productive gas sand interval designated as the Bashkirian-1b. The well has stabilized at a rate of 1.4 million cubic feet per day since October, 2018.

Mikhail Afendikov, chairman and chief executive officer of Cub Energy, commented: "The successful O-3 recompletion, coupled with the recent success of the O-9 recompletion in the second quarter of 2018, has increased the total field production by almost 20 per cent. Given the recent successes of the recompletions, their relatively low cost and the high gas price environment in Ukraine at present, Kub-Gas's priority is to focus on additional recompletion candidates, of which at least 10 wells have been identified."

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.

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From: JRod775/8/2019 12:26:28 PM
   of 68
 
Ukraine Faces a Bleak Winter as Russia Prepares to Cut Off Gas
The head of Ukraine’s state gas company Naftogaz expects deliveries to stop on January 1, 2020.

themoscowtimes.com

If Russia does cut off gas to Ukraine, local producer pricing could easily double given supply/demand metrics. KUB could double their current cash flow and more depending on how many new wells are drilled.

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From: JRod775/14/2019 9:59:31 PM
   of 68
 
Cub Energy Inc. Q1 2019 Results. Financials + MD&A – All Information Found On Sedar

Stock Symbols: KUB – Canada & TPNEF – USA

Price: $0.06
Common Shares: 314,215,355
Insider/Institutional Holdings: 172,466,105 or 55% of common shares
Options: 15.3 million
2019 Company Pres: cubenergyinc.com
2019 Fact Sheet: cubenergyinc.com

Financials – All Numbers Are Expressed In US Dollars. Ending March 31st 2019

ASSETS
Cash: $6,958,000
Dividend Receivable: $1,684,000
Prepaid Expenses: $702,000
Trade & Other Receivables: $644,000
Equity Investments: $8,049,000
Property & Equipment: $3,749,000
Non-Current Receivables: 587,000
Total Assets: $22,373,000

LIABILITIES
Trade & Other Payables: $4,382,000
Loan From KUB-Gas(100% Owned Subsidiary): $ 5,229,000
Shareholder Loan(current portion): $250,000
Shareholder Loans (total): $2,000,000
Provisions: $484,000
Total Liabilities: $12,345,000

Asset/Debt Ratio: 1.81

2017-2019 Performance

2017 – All USD
Gas Sales: $24,000
Gas Trading: $13,099,000
Royalty Expense: ($7,000)
Income From Equity Investment: $6,767,000
Operating Expenses (Total): $34,218,000 - $16 million one time impairment included
Loss: $14,869,000 – Should have been a profit with one time expense removed

2018 – All USD
Gas Sales: $142,000
Gas Trading: $20,428,000
Royalty Expense: ($38,000)
Income From Equity Investment: $6,121,000
Operating Expenses (Total): $23,573,000
Income Tax Expense: $2,000
Foreign Currency Gain: $52,000
Income: $ 3,130,000

2019 Q1 – All USD
Gas Sales: $49,000
Gas Trading: $4,479,000
Royalty Expense: ($14,000)
Income From Equity Investment: $1,522,000
Operating Expenses (Total): $5,074,000
Net Income: $962,000
Foreign Currency Gain: $437,000
Income: $1,399,000

2019 Earnings: $1,399,000 X 1.30(CDN Exchange) / 314,215,355 = $0.00578 or $0.006 cents earnings
*Must convert USD to CDN to get real stock value of KUB.V(Canadian listed)

Management Discussion Highlights

Highlights
  • The Company reported income from equity investment of $1,522,000 during the three months ended March 31, 2019 as compared to income of $1,706,000 in the comparative 2018 quarter.
  • The Company reported net income of $962,000 or $0.00 per share during the three months March 31, 2019 as compared to net income of $779,000 or $0.00 per share during the same period in 2018.
  • The Company recorded $1,684,000 in dividends during the three months March 31, 2019 compared with $1,054,000 in dividends in 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.
  • 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.
  • 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.
  • Kub-Gas recompleted the Olgovskoye-7 (“O-7”) well during 2019 and it is currently being tested.

  • 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 cost of for the first three wells are financed 100% by our partner.

  • Eastern Ukraine KUB-Gas Assets (35%)

    Kub-Gas recompleted the O-7 well in 2019 and is awaiting testing. 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. Opportunities such as these generate above average returns for shareholders, particularly given the current gas price in Ukraine. Kub-Gas is also contemplating drilling a new well on the Makeevskoye Licence later in 2019. The Company expects to commence a 3D seismic program later this year should improve the probability of success of future exploration wells.

    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. Subsequent to the three months ended March 31, 2019, 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 NRU has been relocated to another manufacturer in the Houston, Texas area and will undergo an evaluation and testing during the summer of 2019 to determine what is required to complete the NRU.

    Western Ukraine CNG Assets (50% Interest)

    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 cost of for the first three wells are financed 100% by our partner.

    Ukraine Gas Prices and Currency

    The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.25 UAH/USD at March 31, 2019, which was relatively flat as compared to the 27.76 UAH/USD at December 31, 2018. During the three months ended March 31, 2019, gas prices realized were $7.11/Mcf which was relatively flat compared to the comparative 2018 price of $7.16/Mcf. The future of natural gas prices in Ukraine is currently subject to a high degree of uncertainty and it is unknown what the future prices the Company will receive on its Ukraine production.

    Commencing August 2016, the Company’s wholly owned subsidiary, Tysagaz, began taking possession of its 35% ownership of gas produced at KUB-Gas. Tysagaz purchased the gas from KUB-Gas at the same price that KUB-Gas sold its gas to an affiliate of the majority shareholder of KUB-Gas. The Company agreed to this arrangement so it could attempt to earn additional net income on the gas sales price sold to majority shareholder’s affiliate. There were impairment charges that impacted net losses in 2017. During the quarter 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 at that time. During the fourth quarter of 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.

    Revenue from Gas Sales, Net of Royalty

    The Company began selling a modest amount of rich gas from the RK field in western Ukraine from a deep well (RK-1) in the Mesozoic formation resulting in revenue during the three months ended March 31, 2019 of $49,000 as compared to $nil in the comparative 2018 period.

    Revenue from Gas Trading, Net of Cost of Sales for Gas Trading

    Commencing August 2016, the Company’s wholly owned subsidiary, Tysagaz, began taking possession of some of its 35% ownership of gas produced at KUB-Gas. Tysagaz purchased the gas from KUB-Gas at the same price that KUB-Gas sold its gas to an affiliate of the majority shareholder of KUB-Gas. The Company agreed to this arrangement so it could attempt to earn additional net income from the gas sales price sold to the majority owner’s affiliate. During the three months ended March 31, 2019, the Company recorded $4,479,000 in gas trading revenue and $4,240,000 for the cost of the gas trading for a net profit of $239,000 as compared to $5,670,000 in gas sales and $5,516,000 for the cost of the sales for a net profit from gas trading of $154,000 during the comparative 2018 quarter.

    Income from Equity Investments

    The Company accounts for its 35% indirect ownership in KUB Holdings and 50% ownership of CNG Holdings as investments under the equity method. During the three months ended March 31, 2019, KUB-Gas generated gross revenues of approximately $9,724,000 (2018 - $9,791,000) and had net income of $4,349,000 (2018 – $4,872,000). This resulted in a net income to the Company from its equity investment for the quarterly period of $1,522,000 (2018 – $1,706,000). The net income at CNG Holdings was $30,000 (2018 – $8,000) during the three months ended March 31, 2019. Net income in both periods primarily related to finance income, net of finance expense, on intercompany loans and the effects of foreign exchange to funds the exploration activities in Ukraine. The Company only records income/losses in its consolidated financial statements from its equity investment in CNG Holdings to the extent of interest in the equity investment which amounted to nil as at March 31, 2019 and December 31, 2018.

    Outlook

    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

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    From: JRod775/15/2019 8:56:26 AM
       of 68
     
    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
    mikhail.afendikov@cubenergyinc.com

    Patrick McGrath
    Chief Financial Officer
    (713) 577-1948
    patrick.mcgrath@cubenergyinc.com

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    From: JRod775/15/2019 6:49:42 PM
       of 68
     
    May 2019 - Update Company Presentation & Fact Sheet


    Fact Sheet: cubenergyinc.com


    Company Presentation: cubenergyinc.com

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    From: JRod775/20/2019 11:22:37 AM
       of 68
     
    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.

    washingtonpost.com

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    From: JRod775/21/2019 6:12:43 PM
       of 68
     
    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

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    From: JRod776/4/2019 2:17:25 PM
       of 68
     
    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 - worldoil.com

    Ukraine boosts gas imports by 19% in Jan-May - unian.info

    UKRAINE INCREASES GAS INVENTORIES BY 2 BCM IN MAY - open4business.com.ua

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    From: JRod776/4/2019 3:48:51 PM
       of 68
     
    Chens Picks NYC - KUB June 2019 Update

    chenpicks.com

    June 2019 (Starts At 18:30) : youtube.com

    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.

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    From: JRod776/22/2019 11:55:13 AM
       of 68
     
    June 19th 2019 Interview: Majors expected back in hunt for Ukraine gas as activity picks up

    https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/061919-interview-majors-expected-back-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, stuart.elliott@spglobal.com

    -- Edited by Dan Lalor, daniel.lalor@spglobal.com

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