HOUSTON, TEXAS--(Marketwire - Feb. 15, 2013) - Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, announces that the North Makeevskoye-2 ("NM-2") exploration well, has been abandoned after wireline logs and other information obtained during the drilling operation did not indicate any prospective zones. The NM-2 well commenced drilling in early December 2012 and was drilled to a depth of 3,150 metres. The NM-2 is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which Cub has a 30% ownership interest.
North Makeevskoye Licence
The North Makeevskoye Exploration Licence is located immediately northeast of KUB-Gas' Makeevskoye and Olgovskoye licences, approximately 130 kilometres to the northwest of the City of Lugansk in eastern Ukraine. The Company believes the licence to be geologically similar to the productive areas that lie along the primary South-Eastern Dnieper-Donets Basin gas/condensate structural trend: such as the adjacent KUB-Gas Makeevskoye and Olgovskoye Licences.
In the first quarter of 2012, 225 km2 of 3D seismic data was acquired over the majority of the North Makeevskoye Exploration Licence. Interpretation of the new 3D seismic data, in combination with the 71 kilometres of 2D seismic acquired during the second quarter of 2011 and 275 kilometres of pre-existing 2D seismic data, has contributed to the overall geological understanding of the North Makeevskoye Exploration Licence and resulted in five additional structural prospects being identified. The NM-2 well, which has evaluated the potential of the first of the prospects defined by 3D seismic, is located 13 kilometres to the southeast of the North Makeevskoye-1 ("NM-1") well which was drilled during the second quarter of 2012 on legacy 2D seismic data and cased to TD as a candidate for future fracture stimulation. Additional drilling on the North Makeevskoye licence is expected to occur later in 2013.
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE:KUB) is a Ukraine-focused upstream oil and gas company with 110,000 net acres, in nine exploration and production licences, in the two major producing basins within Ukraine. The Company's strategy is to use western technology and capital, combined with local expertise to create value in its undeveloped land base, building a portfolio of high margin producing oil and gas assets. The Company has offices in Houston, Toronto and Kyiv and trades in Toronto under the stock symbol KUB.
For further information please contact us or visit our website: www.cubenergyinc.com.
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 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.
Lionel C. McBee
Director of Investor Relations
Cub Energy Inc.
Chairman and Chief Executive Officer