WI The Western Investment Company of Canada Limited

Cub Energy Inc. ("Cub", or the "Company") (TSX VENTURE:KUB) announces fourth
quarter operational update including the seventh consecutive quarter of
production growth, record quarterly production and a 2013 exit rate of
approximately 2,070 barrels of oil equivalent ("boe/d") (a 35% increase over the
Company's 2012 exit rate). 


Fourth Quarter Update

Average production from the Company's Ukrainian assets for the fourth quarter of
2013 was 1,687 boe/d, an 11.5% increase over third quarter production of 1,513
boe/d. Cub realised a significant increase in corporate production from the tie
in of its first 100% working interest ("WI") well, the Rusko-Komarovskye-22
("RK-22") late in the fourth quarter. Average production for 2013 was 1,562
boe/d (an increase of 29% over 2012 production of 1,210 boe/d).


During the fourth quarter Cub drilled, completed and brought on production the
RK-22 well. The Company announced in December the RK-22 well tested gas at a
maximum flow rate of 2.5 million cubic feet per day ("MMcf/d"). The well
commenced production in late-December and is currently producing approximately
1.9 MMcf/d or 318 boe/d.


During the quarter, the Company also commenced drilling of the Makeevskoye-17
("M-17") and began testing the Olgovskoye-24 ("O-24") wells in eastern Ukraine.
The M-17 and O-24 wells are operated by KUB-Gas LLC ("KUB-Gas"), a
partially-owned subsidiary in which Cub has a 30% ownership interest through its
30% shareholding of KUBGas Holdings Limited. 


Infrastructure Development

The Company continued work on the expansion of its Makeevskoye facilities
designed to increase capacity from 30 MMcf/d to 68 MMcf/d for production from
both the Makeevskoye and Olgovskoye fields. Upon completion of the expansion,
Cub expects an increase in production from several wells that are currently
flowing at restricted rate due to the current capacity of the facilities.
Completion of the expansion project is expected during the first quarter of
2014.


2014 Work Program and Budget

The company expects to execute a capital expenditure budget of approximately $23
to $27 million (net to Cub) for 2014 and is contingent on the level of operating
cash flow. 


The program will primarily focus on further development of producing assets in
both the eastern and western Ukraine with plans to drill eleven wells (six with
a 100% WI and the balance with 25%-30% WI).


With the successful tie-in of the RK-22 well, Cub expects to commence drilling
of the follow up RK-21 well during the first quarter of 2014. Two additional
wells are planned on the RK licence during the balance of the year. 


Additionally, Cub expects additional production volumes through of program of
workovers, fracture stimulations and re-entries on 7-10 wells beginning in the
first quarter of 2014. 


Ukraine Industrial Gas Pricing

Based on current legislation, the Company expects first quarter industrial gas
pricing to be between US $10.00 and $11.00 per thousand cubic feet. All of the
Company's Ukraine production is marketed and sold to industrial-end users. 


Updated Corporate Presentation

For more information on this operational update and Cub's plans for 2014, please
see the Company's January 2014 corporate presentation at www.cubenergyinc.com. 


About Cub Energy Inc.

Cub Energy is an upstream oil and gas company, with a proven track record of
exploration and production cost efficiency in the Black Sea region. 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. 


Oil and Gas Equivalents 

A barrel of oil equivalent ("boe") or units of natural gas equivalents ("Mcfe")
is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of
natural gas being equivalent to one barrel of oil. A boe conversion ratio of 6
Mcf: 1 bbl (barrel) or an Mcfe conversion of 1bbl: 6 Mcf is, based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead and is not based on either
energy content or current prices. While the boe ratio is useful for comparative
measures, it does not accurately reflect individual product values and might be
misleading, particularly if used in isolation. As well, given that the value
ratio, based on the current price of crude oil to natural gas, is significantly
different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio
may be misleading as an indication of value.


Reader Advisory

Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. Cub believes that the expectations reflected in the forward-looking
information are reasonable; however there can be no assurance those expectations
will prove to be correct. We cannot guarantee future results, performance or
achievements. Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in the
forward-looking information.


Forward-looking information is based on the opinions and estimates of management
at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking information.
Some of the risks and other factors that could cause the results to differ
materially from those expressed in the forward-looking information include, but
are not limited to: general economic conditions in the Ukraine, Turkey and
globally; industry conditions, including fluctuations in the prices of natural
gas; governmental regulation of the natural gas industry, including
environmental regulation; unanticipated operating events or performance which
can reduce production or cause production to be shut in or delayed; failure to
obtain industry partner and other third party consents and approvals, if and
when required; competition for and/or inability to retain drilling rigs and
other services; the availability of capital on acceptable terms; the need to
obtain required approvals from regulatory authorities; stock market volatility;
volatility in market prices for natural gas; liabilities inherent in natural gas
operations; competition for, among other things, capital, acquisitions of
reserves, undeveloped lands, skilled personnel and supplies; incorrect
assessments of the value of acquisitions; geological, technical, drilling,
processing and transportation problems; changes in tax laws and incentive
programs relating to the natural gas industry; failure to realize the
anticipated benefits of acquisitions and dispositions; and the other factors.
Readers are cautioned that this list of risk factors should not be construed as
exhaustive.


This cautionary statement expressly qualifies the forward-looking information
contained in this news release. We undertake no duty to update any of the
forward-looking information to conform such information to actual results or to
changes in our expectations except as otherwise required by applicable
securities legislation. Readers are cautioned not to place undue reliance on
forward-looking information.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cub Energy Inc.
Mikhail Afendikov
Chairman and Chief Executive Officer
(713) 677-0439
mikhail.afendikov@cubenergyinc.com


Cub Energy Inc.
Lionel C. McBee
Director of Investor Relations
(713) 577-1955
lionel.mcbee@cubenergyinc.com
www.cubenergyinc.com

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