Cub Energy Inc. Reports Year-End Reserves for 2013
26 Marzo 2014 - 7:36PM
Marketwired Canada
Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB) announces the results
of its independent reserves evaluation as at December 31, 2013 on its oil and
gas properties. The evaluation was conducted by RPS Energy Consultants LLC
("RPS"), an independent qualified reserves evaluator and auditor, on the
Company's properties in Ukraine in its report dated March 20, 2014 ("The RPS
Report").
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's NI 51-101 disclosure is
contained in its Annual Information Form for the year ended December 31, 2013
filed on SEDAR (www.sedar.com) and posted on the Company's website at
www.cubenergyinc.com.
HIGHLIGHTS:
-- Proved developed producing ("PDP") oil and natural gas reserves of 1,142
Mboe or 6,852 MMcfe with PV-10 (as defined herein) of $51.4 million
-- Proved ("1P") oil and natural gas reserves of 2,267 Mboe or 13,602 MMcfe
with PV-10 of $76.9 million
-- Proved and probable ("2P") oil and natural gas reserves of 4,545 Mboe or
27,270 MMcfe with PV-10 of $150.8 million
Total Company Reserves Summary
The following tables summarise total Company reserves and associated net present
value discounted at 10% before tax at December 31, 2013 using forecast prices.
Table 1 Total Company Reserves Volumes (1)(2)
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Reserves Category Natural Gas NGLs
(MMcf) (Mbbls) Mboe MMcfe
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Developed producing 6,736 20 1,142 6,852
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Developed non-produced 1,137 7 196 1,176
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Undeveloped 5,517 9 928 5,568
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Total Proved (1P) 13,388 35 2,267 13,602
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Total Proved plus Probable (2p) 26,697 96 4,545 27,270
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Note:
(1) See "Oil and Gas Equivalents" below
(2) Reserves net to the Company's interest after deduction of royalties
Table 2 Net Present Value at 10% before tax (US$ Millions)(1)(2)
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Reserves Category NPV
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Proved Developed Producing (PDP) 51.4
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Total Proved (1P) 76.9
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Total Proved plus Probable (2P) 150.8
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Note:
(1) The forecast prices used in the calculations of the present value of
future net revenue for year-end 2013 are based on the RPS Reports of
Eastern Ukraine and Western Ukraine asset forecast prices.
(2) Estimated values do not represent fair market value.
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.
Reserves Classifications
"Gross Reserves" are the Company's working interest (operating or non-operating)
share before deduction of royalties and without including any royalty interests
of the Company. "Net Reserves" are the Company's working interest (operating or
non-operating) share after deduction of royalty obligations, plus the Company's
royalty interests in reserves.
Defined Terms
"Reserves" are estimated remaining quantities of oil and natural gas and related
substances anticipated to be commercially recoverable by application of
development projects to known accumulations from a given date forward under
defined conditions. Reserves must further satisfy four criteria: they must be
discovered, recoverable, commercial, and remaining (as of the evaluation date)
based on the development project(s) applied.
Reserves are further categorized in accordance with the level of certainty
associated with the estimates and may be sub-classified based on project
maturity and/or characterized by development and production status.
"Proved Reserves" are reserves that can be estimated with a high degree of
certainty to be recoverable, from a given date forward, from known reservoirs
and under defined economic conditions, operating methods and government
regulations.
"Probable Reserves" are those additional Reserves that are less certain to be
recovered than Proved Reserves but more certain to be recovered than Possible
Reserves.
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.
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 and political conditions in Ukraine, the
Black Sea Region 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 realise
the anticipated benefits of acquisitions and dispositions; and 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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