HOUSTON, TEXAS--(Marketwire - May 7, 2012) - CUB Energy Inc. ("CUB", or the "Company") (TSX VENTURE:KUB), announces the commencement of the first well on the North Makeevskoye license. The well is operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which CUB has a 30% ownership interest.
Drilling of the North Makeevskoye-1 ("NM-1") exploration well is expected to take between 40 and 50 days to reach a planned total depth ("TD") of 2,500 metres using a K-200 drilling rig owned by KUB-Gas. The company anticipates drill stem tests ("DSTs") will be performed on prospective horizons encountered during the drilling process and, if initiated, would increase the drilling time to reach TD. The NM-1 well will target multiple prospective reservoirs in the Bashkirian, Moscovian and Serpukovian aged sediments. The current cost estimate for the well on a drill-only basis is approximately US$ 2.5 million.
Mikhail Afendikov, Chairman and Chief Executive Officer, stated:
"We are optimistic about the exploration potential of the NM-1 well and the overall license area. This is our first well in the license area after an extensive seismic program was acquired last year. If successful, the well has the potential to allow for the conversion of a significant amount of resources identified in our current reserve report into reserves. Shareholders should further note the NM-1 well and license area are part of our overall growth strategy. We intend to grow the Company through the acquisition of large undeveloped license areas contiguous with current production, thereby mitigating exploration risk, and developing them through the combination of seismic, western technology, modern completion practices and local expertise."
About CUB Energy Inc.
Cub Energy Inc. is a TSX Venture Exchange company focused on the exploration and development of oil and gas in Ukraine. The company is headquartered in Houston, Texas with offices in Kyiv, Ukraine. Cub has 110,000 net acres, in nine fields, 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. Cub shares are traded under the stock symbol KUB.
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