HOUSTON, TEXAS -- (Marketwire) -- 03/11/13 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB) today announced the Olgovskoye-15 ("O-15") well has commenced drilling. The O-15 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which Cub has a 30% ownership interest.
The O-15 well, with a planned total measured depth ("MD") of 3,200 metres, will be drilled as a directional well with the KUB-Gas owned K-200 drilling rig. The well is being drilled to evaluate the potential of the Bashkirian R30c and Serpukhovian S5 reservoir sands to further develop the gas production capability of the Olgovskoye Field. The well is expected to take approximately 70 days to reach its planned MD.
The Olgovskoye Production Licence is located approximately 160 kilometres to the northwest of the City of Lugansk in northeastern Ukraine. Since June 2010 five Olgovskoye gas wells have been tied-in to commercial production and two wells were fracture stimulated in the fourth quarter of 2011, the Olgovskoye-6 ("O-6"), which was drilled prior to June 2010, and Olgovskoye-8 ("O-8"). The O-6 well was tied-in as a producing gas well in early February 2012 at a gross rate of 1.5 million cubic feet per day ("MMcf/d") and the O-8 well was tied-in to commercial production in March 2012 at a gross rate of 1 MMcf/d. Gross production from the Olgovskoye Licence averaged 11.42MMcf/d to KUB-Gas (3.5 MMcf/d net to Cub) during the month of February, representing approximately 40 percent of total production from all of Cub's licences.
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE: KUB) is an upstream oil and gas company with 110,000 net acres in nine exploration and production licences within the two major producing basins of Ukraine. 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.
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.
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.
Cub Energy Inc.
Lionel C. McBee
Director of Investor Relations
Cub Energy Inc.
Chairman and Chief Executive Officer
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