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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.
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
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 .
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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)
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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. In June 2017, the Company entered into a second shareholder loan agreement with an officer of the Company. The shareholder loan is for $1,000,000 with an annual interest rate of 6% payable monthly. The shareholders loan was repaid in four equal quarterly installments and repaid in full on June 30, 2019. During the nine months ended September 30, 2019, the Company received $2,790,000 in dividends from KUB Holdings as compared to $3,847,000 in dividends in the 2018 comparative period. During the nine months ended September 30, 2019, the Company expended $9,000 on capital expenditures as compared to $219,000 in the 2018 comparative period, which was largely related to the NRU. During the nine months ended September 30, 2019, KUB-Gas incurred approximately $1,226,000 (2018 - $3,444,000) of capital expenditures on property, plant and equipment which was the workovers in 2019 and primarily the NY-3 well in 2018. CNG expended approximately $1,670,000 for drilling the U101 well during the nine months ended September 30, 2019 as compared to $71,000 in the 2018 comparative period. The CNG capital expenditures are largely paid by the company’s 50% equity partner. There remains significant doubt about the ability of the Company to continue as a going concern and meet its obligations as they become due.
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.
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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.
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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.
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.
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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.
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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
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EU to offer gas plants a green finance label, under certain conditions
The European Union plans to label some gas power plants as sustainable investments, after an initial proposal to deny them a green label faced a backlash from a group of 10 EU member states.
The European Commissions new proposal, shared with EU countries on Saturday, would class gas-fuelled plants that generate power plus heating or cooling as a green investment if strict conditions on emissions are met and they are operating by 2025.
The EUs updated proposal for gas plants is part of its Sustainable Finance Taxonomy, which defines what economic activities can be marketed in Europe as sustainable investments from next year. The full text of the proposal was published online by specialised news site Contexte.
The Commission declined to comment on the draft proposal. It plans to finalise the sustainable finance rules by April 21.
The EUs aim is to steer more capital into environmentally friendly projects to help it deliver on its plan to rapidly slash the greenhouse gas emissions causing climate change.
But the taxonomy has become mired in disputes between EU countries over how to treat investments in natural gas, forcing the Commission to rewrite its original proposal from November.
Natural gas, a fossil fuel, produces roughly half the carbon dioxide (CO2) emissions of coal when burned in a power plant and countries such as Poland and Germany plan to use gas to wean themselves off the more polluting fuel.
However, gas is not emissions-free and there are growing concerns that leaks of potent planet-warming methane from gas infrastructure could cancel out the benefits of switching to gas from coal.
Strict conditions
Under the draft plan, gas plants that generate power and also provide heating or cooling can be classed as a green investment if they replace a high-emitting fossil fuel-based facility and result in a cut in greenhouse gas emissions of at least 50% per kilowatt hour (kWh) of energy produced.
The gas plant must be operating by 2025, have the potential to use low-carbon fuels in future, and emit no more than 270 grams of CO2 equivalent per kWh of energy.
For plants only producing power, or those that also provide heating or cooling but do not replace a more polluting plant, the Commission stuck to its plan to restrict the green label to plants with life-cycle emissions below 100g of CO2 equivalent per kWh, according to the draft document.
That means gas power plants operating now would need to add technology to capture their emissions to qualify.
Sean Kidney, chief executive of the Climate Bonds Initiative, said it was a major win for climate action that the Commission had not weakened this 100g emissions limit.
That is a key marker for electricity generation that we need to spread globally, said Kidney, a member of the EUs advisory group on the sustainable finance taxonomy.
James Watson, secretary general of gas industry group Eurogas, declined to comment on the draft proposal but said the 100g limit was a barrier to switching to gas from coal.
The taxonomy must leverage all viable technology, including highly efficient gas-fired solutions and renewable and low-carbon gas-ready units, Watson said.
The new proposal aims to placate countries split over the finance rules, as it would take a majority of the blocs 27 members to veto them.
A group of 10 EU countries, including Bulgaria and Poland, had urged the Commission to label gas power as green by giving plants a feasible threshold they could meet.
States including Denmark and Spain, however, have warned Brussels not to weaken its initial plan to deny gas a green label.
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Cub Energy Announces Appointment of Board Member and Power Generation Update
Houston, Texas – March 23, 2021 – Cub Energy Inc. (“Cub” or the “Company”) a Ukraine-focused power and upstream oil and gas company, announces the appointment of Eugene Chaban as a member of the board of directors effective immediately. Mr. Chaban has been working with the Company in a management position since 2014 and was appointed Chief Financial Officer on February 2, 2021. Mr. Chaban has worked in the energy sector in Ukraine for over 10 years including oil and gas, power generation and energy trading.
The Company’s two Jenbacher gas power generation engines were successfully tested and installed to the local power grid in February 2021. To commence commercial production, the Company requires government regulatory approval which is still pending and the Company believes will be granted in due course. This should result in the restart of the RK field in western Ukraine.
About Cub Energy Inc.
Cub Energy Inc. is a power and 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 assets within a high pricing environment.
For further information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath Interim Chief Executive Officer (713) 577-1948 patrick.mcgrath@cubenergyinc.com
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Note: $165,000 USD profit for Q4. This is with lower natural gas pricing compared to 2021 and without the RK producing, which is currently awaiting government approval.
Houston, Texas – March 31, 2021 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB), a Ukraine-focused upstream oil and gas company, announced today its audited financial and operating results for the year ended December 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. Patrick McGrath, Interim CEO of Cub said: “We are pleased to report the two Jenbacher power units arrived on site on the RK field in Q4 2020 and were successfully installed and tested during Q1 2021 and just awaiting final regulatory approval to start selling into the local power grid. While the commercialization has taken longer than expected, we look forward to the commencement of power production. Due to stronger gas trading margins in the fourth quarter of 2020, the Company reported net income of $165,000 during the three months ended December 31, 2020.” Operational Highlights
• Achieved average natural gas price of $3.79/Mcf and condensate price of $41.07/bbl during the year December 31, 2020 as compared to $5.36/Mcf and $49.51/bbl for 2019. The decrease in gas price is in large part due to the impact of COVID-19. To date in 2021, the Company has seen the price of natural gas in Ukraine rebound to the $5/Mcf-$6/Mcf range.
• Production averaged 619 boe/d (97% weighted to natural gas and the remaining to condensate) for the year December 31, 2020 as compared to 784 boe/d for 2019.
• In 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 the fourth quarter of 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 3 MW in total.
Financial Highlights
• The gross profit on the Company’s gas trading business increased to $1,523,000 during the year ended December 31, 2020 as compared to $825,000 in gross profit in 2019.
• The Company reported net income of $165,000 or $0.00 per share during the three months ended December 31, 2020 as compared to a net loss of $11,320,000 or $0.04 per share during 2019. The Company reported a net loss of $2,109,000 or $0.01 per share during the year December 31, 2020 as compared to a net loss of $11,060,000 or $0.04 per share during 2019. Excluding the one-time impairment and provision charges in 2019, the Company would have had net income of $262,000.
• Netbacks of $8.55/boe or $1.43/Mcfe were achieved for the year December 31, 2020 as compared to netback of $15.88/Boe or $2.65/Mcfe for 2019.
• The Company has implemented certain cost-cutting initiatives during 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.
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Houston, Texas – March 31, 2021 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB) announces the results of its independent reserves evaluations as of December 31, 2020 on its oil and gas properties in Ukraine. The evaluation was performed on the Company’s 35% working interest in KUB-Gas LLC (“KUB-Gas”) and was conducted by Ryder Scott Petroleum Consultants (“Ryder Scott”), an independent qualified reserves evaluators and auditor (“Reserves Report”).
The 100% owned RK field, held by the Company’s wholly-owned subsidiary Tysagaz LLC, was not subject to a Reserve Report in 2020 given the Company is awaiting the commencement of commercial production at the power generation project which will utilize the gas at the RK field. The Company expects to re-evaluate the reserve category of the RK field in 2021.
Patrick McGrath, Interim CEO of Cub said: “The natural gas price assumptions in the 2020 reserve report were approximately 15%-20% lower than the World Bank forecasts for the same period which had a negative impact on the value of the 2020 reserve results. However, to date in 2021, the Company has seen the price of natural gas in Ukraine rebound to the $5/Mcf-$6/Mcf range. In addition, the Company hopes to have its RK field re-evaluated to a reserve category in 2021 upon the material re-start of the RK field.”
All evaluations were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and are in accordance with Canadian Securities Administrators National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Cub’sNI 51-101 disclosure for the year ended December 31, 2020 is in its Form 51-101 F1 filed on SEDAR www.sedar.com and posted on the Company’s website at www.cubenergyinc.com
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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Based on the natural gas pricing in Ukraine, which was substantially lower in 2020 compared to 2021, Cub Energy should have much larger profitable quarters going forward, especially when the RK field begins producing.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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Houston, Texas – April 30, 2021 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB), announces it has entered into a share purchase agreement (“SPA”) to sell its 50% interest in CNG Holdings Netherlands B.V. (“CNG”), which in turn owns CNG LLC (Ukraine LLC), the 100% owner of the Uzghorod licence in western Ukraine.
Cub is to receive consideration of €800,000 (US $970,000) for its 50% interest in CNG. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval.
The Company expects the closing in approximately one to two months’ time and will use the cash for general working capital. Patrick McGrath, Cub’s Interim Chief Executive Officer, said “Cub decided to divest its interest in CNG as we view it as a non-core asset that will likely be capital intensive in the near future as it is at the exploration stage.”
About Cub Energy Inc. Cub Energy Inc. (TSX-V: KUB) is a power and upstream oil and gas company. 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 power and oil and gas assets within a high pricing environment. For further information please contact us or visit our website: www.cubenergyinc.com Patrick McGrath Interim Chief Executive Officer (713) 577-1948 patrick.mcgrath@cubenergyinc.com
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Cub Energy Announces Commencement of Power Generation
Houston, Texas – May 17, 2021 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB), a Ukraine-focused power and energy company, announces that its 100% owned subsidiary, Tysagaz LLC (“Tysagaz”), has commenced commercial production of its Jenbacher gas power generation units in western Ukraine.
“Cub is pleased to report it has successfully executed on its power generation plan and has had over ten days of sales into the local power grid” Patrick McGrath, Interim CEO of Cub stated “I would like to thank the Cub team members for their work in bringing the project to fruition and maximizing the value of our RK field. We’ll continue to review additional opportunities in the energy and power sectors.”
The Jenbacher power units are converting natural gas produced from the RK field into power that is being sold into the local power grid. The Jenbacher units can also utilize gas from the nearby pipeline. The power generation units have the capacity to produce as much as 3 megawatts (“MW”) per hour of power. The local power rates are approximately $73/MW per hour and subject to local market fluctuations. The Company also announces the appointment of Patrick McGrath as Chairman of the Company. Mr. McGrath is currently the Interim CEO and a Director.
About Cub Energy Inc.
Cub Energy Inc. (TSX-V: KUB) is a power and upstream oil and gas company. 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 power and oil and gas assets within a high pricing environment.
For further information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath Interim Chief Executive Officer (713) 577-1948 patrick.mcgrath@cubenergyinc.com
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Cub Energy obtains $792K (U.S.) loan from Ukraine bank
2021-06-01 12:28 MT - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES UKRAINE BANK LOAN; PARTIAL REPAYMENT OF PELICOURT LOAN
Cub Energy Inc.'s 100-per-cent-owned subsidiary, Tysagaz LLC, has entered into a 650,000-euro $792,000 (U.S.)) loan with a Ukraine bank. The Ukraine bank loan will bear interest at 7 per cent, will mature in November, 2023, and is secured by the Jenbacher power generation units and a general guarantee by the company. Proceeds of the loan will be used to make a principal repayment of $750,000 (U.S.) on the Pelicourt Ltd. shareholder loan that bears interest at 10.8 per cent. The remaining balance on the Pelicourt loan is $900,000 (U.S.) following the prepayment.
"Cub is pleased to establish a banking relationship with a local Ukraine financial institution as it builds out its power generation business," Patrick McGrath, interim chief executive officer of Cub stated. "The loan and concurrent repayment of a similar amount on the Pelicourt loan allows the company to lower its interest rate from 10.8 per cent to 7 per cent and resulting cash savings."
About Cub Energy Inc.
Cub Energy is a power and upstream oil and gas company. 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 power and oil and gas assets within a high-pricing environment.
We seek Safe Harbor.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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Cub Energy welcomes you to view the below video demonstrating Cub's transition in western Ukraine to power generation. The project is located in the Transcarpathian Basin bordering Hungary, Slovakia and Romania. Cub invested in the power generation business to utilize its existing natural gas field and to supply energy to an area that is underserved. The Company continues to explore further opportunities including clean technology initiatives.
posted
Cub Energy earns $483,000 (U.S.) in Q2 2021
2021-08-25 14:44 ET - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES SECOND QUARTER RESULTS
Cub Energy Inc. has released its unaudited financial and operating results for the interim six months ended June 30, 2021. 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.
Patrick McGrath, chief executive officer of Cub, said: "We are pleased to report $1,488,000 in profit from our gas trading business during the six months ended June 30, 2021, which resulted in the company reporting net income of $746,000 for same period. This was the best net income growth in over two years. Other significant accomplishments during the current period include the commencement of commercial production of the new power generation business and entering into an agreement to divest its non-core western Ukraine licence for proceeds of up to approximately $1-million."
Operational highlights
Achieved average natural gas price of $6.50/Mcf (thousand cubic feet) and condensate price of $68.12/bbl (barrel) during the six months ended June 30, 2021, as compared with $2.77/Mcf and $33.01/bbl for the comparative 2020 period. The increase in commodity prices is due, in large part, to a colder European winter, the lessening global impacts of COVID-19 and geopolitical events. The company's two Jenbacher power units were installed and commenced commercial production in the second quarter of 2021. The power generation units produced 2,253 megawatts an hour (MWh) for the period of commencement in mid-May, 2021, to June 30, 2021, at an average price of $73/MWh. Production averaged 532 boe/d (barrels of oil equivalent per day) (97 per cent weighted to natural gas and the remaining to condensate) for the six months ended June 30, 2021, as compared with 648 boe/d for the comparative 2020 period. On April 30, 2021, the company announced it had entered into a share purchase agreement (SPA) to sell its 50 per cent interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the company is to receive 800,000 euros ($970,000 (U.S.)) for its 50-per-cent interest in CNG Holdings. The consideration consists of 600,000 euros ($728,000 (U.S.)) in cash on closing and 200,000 euros ($242,000 (U.S.)) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021. Financial highlights
The gross profit on the company's gas trading business increased to $1,488,000 during the six months ended June 30, 2021, as compared with $332,000 in gross profit in the comparative 2020 period. The company reported net income of $746,000 or zero cents per share during the six months ended June 30, 2021, as compared with a net loss of $1.9-million or one cent per share during the 2020 comparative period. Netbacks of $19.17/boe or $3.20/Mcfe were achieved for the six months ended June 30, 2021, as compared with netback of $3.77/Boe or $0.63/Mcfe for the six-month comparative period in 2020.
Reader advisory
With the current cash resources, negative working capital, fluctuating commodity prices, currency fluctuations, reliance on a limited number of customers, 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.
Supporting documents
Cub's complete interim reporting package, including the unaudited consolidated interim financial statements and associated management's discussion and analysis, have been filed on SEDAR and have been posted on the company's website.
About Cub Energy Inc.
Cub Energy is a power and 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 assets within a high-commodity-price environment.
We seek Safe Harbor.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Cub Energy Inc. Q2 2021 Financials + MD&A (All Information Can Be Found On Sedar)
Ticker Symbols: KUB.V & TPNEF.OTCQB Price: $0.015 Common Shares: 314,215,355 Market Cap: $4.71 million CAD Insider/Institutional Holdings: 172,466,105 or 55% of common shares Options: 10,900,000 million Most Recent Company Presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf
Financials – All Numbers Are Express In US Dollars (Ending June 30, 2021)
LIABILITIES Loan From KUB-Gas: $5,243,000 Trade & Other Payables: $3,646,000 Shareholder Loan: $938,000 – owed to prior CEO who also holds nearly half of company stock Bank Loan(Current): $303,000 Bank Loan(Non Current): $454,000 Provisions: $342,000 Total Liabilities: $10,926,000
Quarterly Performance Net Revenue: $2,071,000 – RK field was only producing for half of the quarter Income From Equity Investment: $82,000 Operating Expenses + G&A: $1,670,000 Foreign Currency Loss: $35,000 Comprehensive Income: $448,000
Note: Cub Energy Inc. has now generated three quarters of back to back profits Q4 2020 Profit: $165,000 USD Q1 2021 Profit: $263,000 USD Q2 2021 Profit: $483,000 USD Total Profit Earned In 3 Quarters: $911,000 USD or $1.15 million CDN (based on current exchange rate)
MD&A Highlights For Q2 2021 • The Company reported net income of $746,000 or $0.00 per share during the six months ended June 30, 2021 as compared to a net loss of $1,900,000 or $0.01 per share during the comparative 2020 period. The Company benefited from higher natural gas prices. • Energy generation of 2,253 MWh from the Jenbacher power generation project in Western Ukraine for the period of commencement in mid May 2021 to June 30, 2021 at an average price of $73/MWh. • Netbacks of $19.17/boe or $3.20/Mcfe were achieved for the six months ended June 30, 2021 as compared to netback of $3.77/Boe or $0.63/Mcfe for the six month comparative period in 2020. • Achieved average natural gas price of $6.50/Mcf and condensate price of $68.12/bbl during the six months ended June 30, 2021 as compared to $2.77/Mcf and $33.01/bbl for the comparative 2020 period. The increase in commodity prices is due, in large part, to a colder European winter, the lessening global impacts of COVID-19 and geopolitical events. • Production averaged 532 boe/d (97% weighted to natural gas and the remaining to condensate) for the six months ended June 30, 2021 as compared to 648 boe/d for the comparative 2020 period. • In May 2021, the Company commenced commercial production of its Jenbacher gas power generation units that are converting natural gas produced from its wholly-owned RK gas field into power that is being sold in western Ukraine at local market rates. • On April 30, 2021, the Company announced it had entered into a share purchase agreement (“SPA”) to sell its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 (US $970,000) for its 50% interest in CNG Holdings. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021. • 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. All of the Company's facilities remain fully operational.
Western Ukraine Tysagaz Assets (100% Interest)
The Company commenced power generation in mid-May 2021 through two Jenbacher gas power generation engines that are converting the natural gas produced from the RK field into power that is being sold in western Ukraine at local market rates. The power generation units have the capacity to produce as much as 3 megawatts (“MW”) of power utilizing the 100% owned RK gas field.
Eastern Ukraine KUB-Gas Assets (35%)
There are approximately ten recompletion opportunities with “behind pipe pays” that Kub-Gas is reviewing with one recompletion planned for the third quarter of 2021. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Kub-Gas uses its own completion equipment and personnel. Kub-Gas is also planning on drilling an exploration well in 2021 on the Olgovskoye licence (well O-114) to a depth of approximately 2,800 meters that will target multiple zones.
Western Ukraine CNG Assets (50% Interest)
On April 30, 2021, the Company announced it had entered into an agreement to sell its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 (US $970,000) for its 50% interest in CNG Holdings. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021.
Ukraine Currency
The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.18 UAH/USD at June 30, 2021, which appreciated approximately 5% as compared to the 28.27 UAH/USD at December 31, 2020.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
So what are the catalysts for KUB right now:
1) Positive cashflow from KUB-GAS operations. Still producing over 500+BOED
2) Positive cashflow from the RK field electricity generation (asset value has not been added back yet. Over $10 million written off over the last few years because of this project, but there are reserves they can now add back)
3) Drilling of a new well (mentioned in the presentation + MD&A)
4) Well recompletions (also mentioned in the presentation + MD&A)
5) Rising natural gas prices in Ukraine. Increased commodity price means larger earnings going forward
6) Pending sale of Uzhgorod, which will add around $1.2 million CDN cash back to the books
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Cub Energy to sell Kubgas stake for $10.6M (U.S.)
2021-09-07 08:12 ET - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES LETTER AGREEMENT FOR SALE OF 35% INTEREST IN KUBGAS
Cub Energy Inc. has entered into a letter agreement dated Sept. 3, 2021, with its partner to sell its 35-per-cent interest in Kubgas Holdings Ltd. The sale is for a deemed consideration of approximately $10.6-million (U.S.). The consideration comprises a cash payment of $2.6-million (U.S.) and the settlement of approximately $8-million (U.S.) in debt that the company owes Kubgas, subject to adjustments on the completion date. The sale terms were negotiated at arm's length with the partner, and closing of the transaction is subject to the parties entering into a definitive agreement and the company obtaining TSX Venture Exchange approval.
Patrick McGrath, chief executive officer of Cub, said: "Cub Energy's founder and former CEO, Mikhail Afendikov, built Kubgas into one of the largest natural gas producers in Ukraine during the 2000s. The company is proud of its success, but it has decided to divest its remaining interest in this asset. The sale will add cash and substantially deleverage Cub's balance sheet by reducing 80 per cent of the company's debt as of the last quarterly financial results. The divesture allows Cub to focus on its 100-per-cent-owned western Ukraine gas assets and its associated power generation business. The company continues to review new opportunities."
About Cub Energy Inc.
Cub Energy is a power and 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 assets within a high commodity price environment.
We seek Safe Harbor.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
What does this sudden news release mean for Cub Energy: 1) Cub Energy has de-risked itself politically, as mentioned in the news. This company was getting a huge discount before because of fears that Rebels/Russians would takeover their assets in East. This happened to some assets in 2014, so the fear is justified. This is no longer an issue. 2) Cub Energy has also de-risked itself from a company balance sheet standpoint. Yes the cash flow will be reduced, but who cares about revenue if the liabilities/debt are too high. Natural Gas rates are very good right now, but Cub Energy has gone from almost 1000boed in 2018 to now around half of that. That means even with $500k USD profits, cleaning the books would take several years, assuming gat prices stay above $6 an MCF for the next 5 years, which theres no certainty. 3) Cub Energy has also sold the Uzhgorod lease for $970,000USD, which means its only asset is the RK Field and this is more a utility asset then a regular natural gas producing field. So what does this all boil down to once both asset sales are complete and we are left with cash and the RK field. Lets take the last quarterly results and combine them with what we are expecting from this deal. - Last quarter came out 2 weeks ago and the Assets were at $10.8 million USD($5.14 million being cash) and liabilities were $10.93 million. - Uzhgorod will add $970,000 USD in cash once the deal is completed - Deal announced today worth $10.6 million USD will reduce the debt by $8 million and leave around $2.6 million USD in cash So lets start adding these up. We dont know RKs value, but the company wrote off over $10 million from that asset, so Im guessing that will be added back, plus the generators that were purchased as assets. That being said, lets assume for a minute that only cash is left on the assets, which is $5.14 million. CASH: $5.14M(current cash on hand) + $0.97M(Uzhgorod) + $2.6M(KUB Gas Sale) = $8.71 million USD or $11 million CAD based on todays rates. That works out to $0.035c CAD per share just in cash. No value for RK added. Most juniors trade at 2X cash just FYI. DEBT/LIABILITIES: $10.93M $8M = $2.93M left in Debt/Liabilities. This is clearly mentioned on the news release.
So what are we left with in the end, and this is a rough estimate, as well as assuming both deals close: - $8.71 million USD in CASH - $2.93M million USD in Debt/Liabilities RK Field which is worth quite a bit. Last quarter it cash flowed $178K USD for only half a quarter, so it would be safe to say that $300K cash flow per quarter is realistic, or around $1.2 million USD per year. $178K was revenue from electricity sales and cost on the books show $67K USD, so the margins are good.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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HOUSTON, TX and CALGARY, AB / ACCESSWIRE / November 29, 2021 / Cub Energy Inc. ("Cub" or the "Company") (TSX-V:KUB), a Ukraine-focused energy company, announced today its unaudited financial and operating results for the interim nine months ended September 30, 2021. 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.
Patrick McGrath, CEO of Cub said: "We are pleased to report $2,138,000 or $0.01 per share in net income during the nine months ended September 30, 2021. The increase in the price of natural gas was the primary contributor to the 2021 financial results. Cub also signed a letter agreement for the sale of its 35% equity interest in Kub-Gas for deemed consideration of $10.6 million. The proposed sale will deleverage Cub's balance and allow Cub to focus on its 100% owned assets and new opportunities."
Operational Highlights
Achieved average natural gas price of $7.66/Mcf and condensate price of $69.16/bbl during the nine months ended September 30, 2021 as compared to $3.59/Mcf and $40.33/bbl for the comparative 2020 period. Production averaged 513 boe/d (97% weighted to natural gas and the remaining to condensate) for the nine months ended September 30, 2021 as compared to 638 boe/d for the comparative 2020 period The power business generated 5,546 megawatts an hour ("MWh") from the Jenbacher power units in Western Ukraine for the period of commencement in mid-May 2021 to September 18, 2021 at an average price of $71/MWh. Due to the recent material increase in natural gas prices and no parallel increase in power prices, the Company has increased its sales of natural gas at the RK field and temporarily suspended the power business as of September 18, 2021 as this strategy is more profitable at present. The Company will continue to monitor the prices of both commodities and utilize whichever one produces the better return for shareholders. On September 7, 2021, the Company announced it had entered into a letter agreement to sell its 35% interest in KUB-Gas for a cash payment of $2,600,000 and settlement of approximately $8,000,000 in debt for total deemed consideration of approximately $10,600,000. The closing of the transaction is subject to the parties entering into a definitive agreement and regulatory approval. The Company continues to work towards closing the sale of its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 for its 50% interest in CNG Holdings. The consideration consists of €600,000 in cash on closing and €200,000 is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval. Financial Highlights
The gross profit on the Company's gas trading business increased to $2,311,000 during the nine months ended September 30, 2021 as compared to $899,000 in gross profit in the comparative 2020 period. The Company reported net income of $2,138,000 or $0.01 per share during the nine months ended September 30, 2021 as compared to a net loss of $2,274,000 or $0.01 per share during the comparative 2020 period. Netbacks of $22.90/boe or $3.82/Mcfe were achieved for the nine months ended September 30, 2021 as compared to netback of $9.13/Boe or $1.52/Mcfe for the nine month comparative period in 2020. (in thousands of US Dollars) Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Revenue from gas trading 2,698 1,255 6,180 4,382 Pro-rata petroleum and natural gas revenue(1) 2,089 659 4,498 2,713 Revenue from sale of electricity 281 - 459 - Petroleum and natural gas revenue 114 37 305 146 Net income (loss) 1,392 (374 ) 2,138 (2,274 ) Income (loss) per share - basic and diluted 0.00 (0.00 ) 0.01 (0.01 ) Funds generated from (used in) operations 330 (232 ) 1,414 (325 ) Capital expenditures(2) - - 352 - Pro-rata capital expenditures(2) 146 - 601 869 Pro-rata netback ($/boe) 31.00 9.11 22.90 9.13 Pro-rata netback ($Mcfe) 5.17 1.52 3.82 1.52
September 30, 2021 December 31, 2020 Cash and cash equivalents 5,385 4,424 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. 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. For purposes of the pro-rata netback calculation, the Company's profit from gas trading is added to the revenue of Kub-Gas to better reflect the true natural gas price achieved and field netback. Reader Advisory
With the current cash resources, negative working capital, fluctuating commodity prices, currency fluctuations, reliance on a limited number of customers, 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.
Supporting Documents
Cub's complete interim reporting package, including the unaudited consolidated 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 a power and 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 assets within a high commodity price environment. For further information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath Chief Executive Officer (832) 499-6009 patrick.mcgrath@cubenergyinc.com
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Cub Energy closes sale of CNG Holdings interest
2021-12-21 10:14 ET - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES CLOSING OF SALE OF CNG INTEREST
Cub Energy Inc. has closed the sale of its 50-per-cent interest in CNG Holdings Netherlands BV, which in turn owns CNG LLC (Ukraine LLC), the 100-per-cent owner of the Uzhgorod licence in western Ukraine, as originally announced on April 30, 2021.
Cub is to receive consideration of up to 800,000 euros ($900,000 (U.S.)) for its 50-per-cent interest in CNG consisting of 600,000 euros ($675,000 (U.S.)) in cash received on closing and 200,000 euros ($225,000 (U.S.)) as a contingent payment on certain future events including a commercial discovery.
Patrick McGrath, Cub's chief executive officer, said, "Cub is pleased to have monetized this asset as part of its strategy to divest non-core assets as it pursues new opportunities."
About Cub Energy Inc.
Cub Energy is a power and 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 build a portfolio of assets within a high-commodity-price environment.
We seek Safe Harbor.
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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posted
Not sure if anyone has been paying attention to the European Natural Gas crisis, but prices have hit a level that I always thought was impossible to achieve. January pricing is at $73 an MCF, equivalent to $460 USD a barrel of oil equivalent!
We saw the Uzhgorod asset sale close this week, which gives me hope that the subsidiary sale should also close. Reason I believe this will occur is because Burisma is making a fortune right now with their 65% ownership and payback on the acquisition will be quick.
Cub Energy made $1.4 million USD in profit last quarter and the average pricing was $7.66 an MCF. The average from October on has been over $20+ an MCF, this can be seen on page 4 of KUB’s December 2021 Company Presentation:
▪ Q1-Q3 2021 average sales price of $7.66/Mcf and a corporate netback of $3.82/Mcfe(1) ▪ October/November sale price has been closer to $20.00/Mcf
As well, Cub Energy started selling Natural Gas from their RK field rather than electricity because of this. From the financial results press release:
• The power business generated 5,546 megawatts an hour from the Jenbacher power units in western Ukraine for the period of commencement in mid-May, 2021, to Sept. 18, 2021, at an average price of $71 per MWh. Due to the recent material increase in natural gas prices and no parallel increase in power prices, the company has increased its sales of natural gas at the RK field and temporarily suspended the power business as of Sept. 18, 2021, as this strategy is more profitable at present. The company will continue to monitor the prices of both commodities and utilize whichever one produces the better return for shareholders.
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Cub Energy Announces Closing of Sale of 35% Interest in KUBGAS
Houston, Texas, and Calgary, Alberta February 2, 2022 Cub Energy Inc. (Cub or the Company) (TSX-V: KUB) announces it has closed the sale of its 35% interest in KUBGAS Holdings Limited (KUB Holdings). The sale was for a deemed consideration of approximately US $10.9 million. The consideration was comprised of a cash payment of US $2.6 million and the settlement of US $8.3 million in debt. The US $8.3 million in debt was settled in full through the repayment of debt and the simultaneous issuance of US $7.9 million in dividends to the Company with the difference being the applicable withholding taxes. The Company continued gas trading of its 35% interest in KUBGAS through to November 15, 2021.
Patrick McGrath, CEO of Cub said: The sale of the Companys eastern Ukraine asset essentially derisks the Companys eastern Ukraine exposure and eliminates the majority of Cubs debt. The Company is now focused on its 100% owned western Ukraine assets and will continue to review new opportunities.
About Cub Energy Inc.
Cub Energy Inc. (TSX-V: KUB) is a power generation and upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. The Companys strategy is to implement western technology and capital, combined with local expertise and ownership, to build a portfolio of assets within an advantaged commodity price environment. For further information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath Chief Executive Officer (832) 499-6009 patrick.mcgrath@cubenergyinc.com
-------------------- Top picks: Visionstate - VIS Fintect - FTEC East West - EW Posts: 642 | From: Canada | Registered: Jun 2008
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