HOUSTON, TEXAS -- (Marketwire) -- 03/12/13 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB) announces an update on its operational activities on the Rusko-Komarovske ("RK") licence and the Makeevskoye-16 ("M-16") well in Ukraine.
Rusko-Komarovske Licence (Western Ukraine)
The Company is in the process of acquiring the necessary permits for the drilling of its initial well, the RK-22, on Cub's 100% owned and operated Rusko-Komarovske licence. The Company plans to spud the RK-22 well in mid-May 2013.
Makeevskoye-16 Well (Eastern Ukraine)
The M-16 well (see notes to editors), which reached a total depth ("TD") of 4,300 meters on 28 November 2012, and was perforated in the S-13 zone over the gross interval 3684 to 3707 meters on March 2, 2013.
After the well was perforated a slight blow too small to measure was observed at the surface and the well was left open to the flare pit. Approximately two hours after perforation the Company shut in the well and observed a small increase in pressure. After being shut in for approximately 15 hours the pressure had continued to increase and burnable gas was observed at the surface. No flow rates were measured during the post perforation flow as the Company plans to fracture stimulate the S-13 zone. Further information regarding flow-back rates will be released when available.
During the time from perforation on March 2nd to 15:00 hours Eastern European Time on March 7th approximately 1.7m3 of fluid had accumulated in the well and field analysis found that the accumulated fluid closely matched composition of the drilling fluid.
The well has behaved similar to the Company's expectations based on open hole log analysis and plans to stimulate the S-13 zone by hydraulic fracturing are being implemented.
Notes to Editors on M-16 Well
The Makeevskoye-16 exploration well in Ukraine is operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which Cub has a 30% ownership interest.
Drilling information and interpretation of wireline logs from the M-16 showed multiple potential pay zones in the Moscovian, Baskhirian and Serpukhovian sections of the well. The S-13 zone is in the Serpukhovian section of the well.
At 4,300 metres TD, the M-16 well targeted the Moscovian, Baskhirian, Serpukhovian and Visean stratigraphic intervals, and is the deepest well drilled to date by the Company. The discovery of potential pay in these intervals, if supported by production tests, continue to support the Company's belief that significant value yet remains to be found in the Olgovskoye and Makeevskoye licence areas.
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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