KUB Cub Energy Inc

Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB), a Black Sea
region-focused upstream oil and gas company, announced today its unaudited
interim financial and operating results for the three and nine months ended
September 30, 2013. All dollar amounts are expressed in United States dollars.


In the third quarter 2013, Cub realised its sixth consecutive quarter of
production growth and the Company is currently at record production of
approximately 1,690 barrels of oil equivalent per day ("boe/d").


Operational Highlights



--  Third quarter average production of 1,513 boe/d for an increase of 24%
    in the same period of 2012; 
--  Achieved an average natural gas price of $11.57/Mcf and condensate price
    of $92.80/bbl for the nine months ended September 30, 2013; 
--  A new pool gas discovery on the Makeevskoye Licence (KUB-Gas) in the
    Serpukhovian zone with the M-16 well; 
--  Tested gas on the Olgovskoye Licence (KUB-Gas) with the O-15, a deeper
    pool discovery well in the Serpukovian zone, which was also tied-in and
    brought on production; 
--  O-24 was drilled and cased to the deeper Serpukhovian zone and
    demonstrated 4 gas-bearing zones to be production tested prior to year-
    end; 
--  Krutogorovskoye licence successfully converted to 20-year production
    licence; 
--  Commenced the expansion of the Makeevskoye and Olgovskoye production and
    processing facility. The expansion will be completed in the first
    quarter 2014 resulting in increased capacity to 68 MMcf/d from the
    current 30 MMcf/d. 



Financial Highlights



--  Third quarter netback of $47.93/boe or $7.99/Mcfe; 
--  Revenue from hydrocarbon sales by KUB-Gas for the first nine months of
    2013 increased 21% to $87.7 million (2012 - $72.3 million) of which the
    Company's 30% share was $26.3 million (2012 - $21.7 million); 
--  Revenue from hydrocarbon sales by the Company, outside of KUB-Gas, for
    the first nine months of 2013 increased 127% to $2.5 million (2012 -
    $1.1 million). The 2012 period represented just six months of
    production; 
--  The total pro-rata revenue from hydrocarbon sales, a non-IFRS measure
    combining the Company's revenue and 30% of the allocated KUB-Gas
    revenue, totaled $28.8 million (2012 - $22.8 million) for the nine
    months ended September 30, 2013; 
--  During the nine months ended September 30, 2013, the Company received
    $6.9 million (2012 - $Nil) in the form of dividends from KUB-Gas
    representing the distribution of excess cash flow; 
--  Net profit for the nine months ended September 30, 2013 was $2.3 million
    or $0.01 per share (2012 - $2.4 million or $0.01 per share); 
--  The Company's unsecured line of credit with Pelicourt was increased to
    $5.0 million and currently remains undrawn.

                                                                            
                                      Three      Three       Nine      Nine 
                                     Months     Months     Months    Months 
                                      Ended      Ended      Ended     Ended 
(unaudited, in thousands of US    September  September  September September 
 dollars)                          30, 2013   30, 2012   30, 2013  30, 2012 
--------------------------------------------------------------------------- 
$                                                                           
Petroleum and natural gas revenue       627        546      2,505     1,060 
Pro-rata petroleum and natural                                              
 gas revenue(1)                       9,646      8,263     28,814    22,737 
Net profit                              271         54      2,290     2,426 
Earnings per share - basic ($)         0.00       0.00       0.01      0.01 
 - diluted ($)                         0.00       0.00       0.01      0.01 
Funds from (used in)                                                        
 operations(2)                         (585)    (1,068)     1,617    (2,320)
Pro-rata funds from operations(3)     3,384      3,348      7,703     9,495 
Capital expenditures (4)              4,833        585      6,062     1,539 
Pro-rata capital expenditures (4)     9,053      2,203     12,961     7,889 
Netback ($/boe)                       47.93      47.60      40.98     51.39 
Netback ($Mcfe)                        7.99       7.93       6.83      8.57 
                                                  
                               September  December
                                30, 2013  31, 2012
--------------------------------------------------
Working capital                    3,769     9,577
Cash and cash equivalents          3,730    10,116
Long-term debt                         -         -
                                                                            
Notes:                                                                      
                                                                            
(1) Pro-rata petroleum and natural gas revenue is a non-IFRS measure that   
adds the Company's petroleum and natural revenue earned in the respective   
periods to the Company's 30% equity share of the KUB-Gas petroleum and      
natural gas sales that the Company has an economic interest in.             
                                                                            
(2) Funds from operations is a non-IFRS measure and is defined as cash flow 
from operating activities, excluding changes in non-cash working capital.   
                                                                            
(3) Pro-rata funds from operations is a non-IFRS measure that adds the      
Company's funds from operations in the respective periods to the Company's  
30% equity share of the KUB-Gas funds from operations that the Company has  
an economic interest in. The KUB-Gas funds from operations is calculated as 
the income from equity investment less the KUB-Gas depletion and            
depreciation.                                                               
                                                                            
(4) Capital expenditures includes the purchase of property, plant and       
equipment and the purchase of exploration and evaluation assets. Pro-rata   
capital expenditures is a non-IFRS measure that adds the Company's capital  
expenditures in the respective periods to the Company's 30% equity share of 
the KUB-Gas capital expenditures that the Company has an economic interest  
in.                                                                         



Mikhail Afendikov, Chief Executive Officer of Cub Energy, commented, "We
realised our sixth consecutive quarter of production growth and believe we have
a strong platform for future development. The recent Serpukhovian discovery
along with our successful development drilling, workover and fracture
stimulation programs in KUB-Gas in eastern Ukraine have yielded significant
results in 2013. Cub also recently announced the commencement of drilling of the
RK-22 well on our 100% owned RK License in western Ukraine. We will continue to
create shareholder value from our production growth on our assets in eastern
Ukraine and are excited about drilling our first 100% owned well in western
Ukraine."


Outlook

The Company expects to commence a 47 km2 3D seismic survey on the East Vergunska
prior to year-end. Cub is currently completing the processing and interpretation
of: the 35 km2 3D survey on the Kryakovskaya field; the 85.6 km2 3D survey on
the Oskolonovska field; and the 45 km2 3D survey on the Stanivske field. 


KUB-Gas operations for the remainder of 2013 include completing the production
testing of the O-24 well, spudding the M-17 well, the workover of the O-6 well
and constructing pipeline to tie-in wells as needed. In early 2014, KUB-Gas
plans to drill the O-11 well as a step-out from the O-15, targeting the
deeper-pool gas discovery in the S-6 zone currently producing in the O-15.
Additionally, a continuation of the fracture stimulation program in multiple
wells, including the O-15 and NM-3 wells is planned, to build upon the success
of the fracs on O-4 and O-5 wells, which were announced in late October. 


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 (www.sedar.com) and has been posted on the Company's website
at www.cubenergyinc.com. All currency references in this press release are in US
dollars except as otherwise indicated. 


About Cub Energy Inc.

Cub Energy Inc. (TSX VENTURE:KUB) 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 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

Cub Energy (TSXV:KUB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Cub Energy (TSXV:KUB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024