HOUSTON, TEXAS -- (Marketwire) -- 02/01/13 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB), a Ukraine-focused upstream oil and gas company, announces the discovery of commercial volumes of natural gas in the Krutogorovskoye-7 ("K-7") exploration well in Ukraine. The K-7 well is operated by KUB-Gas, a partially-owned subsidiary in which Cub has a 30% ownership interest.
The K-7 well commenced drilling in September 2012 and was cased to a total depth ("TD") of 3,206 metres in early November 2012. Wireline logging of the well indicated up to 5 potential gas zones in the Bashkirian and Serpukhovian sands between depths of approximately 2,390 metres and 2,760 metres. A 10 metre section of the Bashkirian B12 zone, from a depth of 2,395 to 2,398 metres and from 2,400 to 2,407 metres, was selected for testing.
The well was flow tested for a period of 14 hours using the various choke sizes listed in the table below and achieved a maximum rate of 5.914 MMcf/d through a 9 mm choke. Average production through the 9 mm choke was 5.896 MMcf/d at an average flowing pressure of 14,435 kPa.
----------------------------------------------------------------------------Choke Size Flow Rate (MMcf/d) Flowing Pressure (kPa)----------------------------------------------------------------------------5mm 2.274 17,826----------------------------------------------------------------------------6mm(1) 3.356 18,331----------------------------------------------------------------------------7mm 4.020 16,148----------------------------------------------------------------------------8mm 4.877 15,009----------------------------------------------------------------------------9mm 5.896 14,435----------------------------------------------------------------------------6mm(2) 3.241 17,700----------------------------------------------------------------------------1 first flow2 second flow
During the test the well was slugging condensate and analysis of well data indicates a calculated rate of 33 barrels of condensate per MMcf of gas.
The well, which has now been shut-in to observe pressures, is expected to be on production in the third quarter of 2013 after the construction of 1.7 kilometres of new pipeline.
Notes to Editor:
Krutogorovskoye is a 1,100 hectare exploration licence granted to KUB-Gas in 2004. It is located near the city of Lugansk, approximately 105 kilometres to the southeast of the KUB-Gas licences at Olgovskoye, North Makeevskoye and Makeevskoye and 12 kilometres northwest of the KUB-Gas licence at Vergunskoye.
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 on the TSX Venture Exchange under the stock symbol KUB.
