Chens Picks NYC - KUB June 2019 Update https://www.chenpicks.com/ June 2019 (Starts At 18:30) : Note - Chen fails to mention the RK field requiring the NRU unit. This well was producing 400boed and 100% owned by Cub Energy. Once in production later this year, it can increase significant cash flow.
June 19th 2019 Interview: Majors expected back in hunt for Ukraine gas as activity picks up https://www.spglobal.com/platts/en/...-in-hunt-for-ukraine-gas-as-activity-picks-up London — International energy majors will be tempted back to Ukraine to drill for gas in the future, according to the head of the country's gas industry association, on the back of a period of intense exploration activity in the eastern European nation. Ukraine, whose gas production has been steady at some 20 Bcm/year for the past 25 years, has vast untapped potential in its onshore blocks -- both for conventional and unconventional resources -- as well as in the Black Sea. New exploration has been hampered in the past by the lack of a transparent licensing process and concern over political instability. But Ukraine is now looking to attract international companies back to the upstream through a series of tenders and license rounds for blocks. "The majors will come. It is just a matter of time," Roman Opimakh, the executive director of the Association of Gas Producers of Ukraine, said in an interview. Big hitters such as Chevron and Shell came to Ukraine in the early 2010s in an attempt to develop the country's unconventional gas resources, but none remain. Drilling resurgence Despite that, the upstream in Ukraine is enjoying a resurgence with 84 active rigs drilling exploration, development and production wells in the country -- almost half of the 186 rigs operational in Europe -- according to Baker Hughes. "The number of wells drilled in Ukraine has increased significantly since 2017," Opimakh said. "Many positive reforms have been introduced for the upstream industry in the past two years." Last year more than 150 wells were spudded, mostly in eastern Ukraine where reserves are located at deeper intervals of more than 5,000 meters. "The domestic fleet of rigs has been modernized and sophisticated rigs are coming to replaced outdated equipment," Opimakh said, adding that foreign outsourced contractors were also contributing resources. The increased activity could help Ukraine boost its domestic gas production as the government looks to eliminate imports, which currently all come from Europe after it halted direct Russian gas purchases in November 2015. Domestic gas production has edged up in recent years, reaching 20.9 Bcm in 2018. Opimakh expected it would take "5-6 years" for Ukraine to become self-sufficient in gas -- meaning Ukraine could produce all the gas it needs by 2024 -- assuming annual demand remained in the range of 30-32 Bcm. In a bid to boost exploration yet further, some 36 blocks have been offered in 2019 in two tenders for 50-year production sharing agreements and three license rounds for 20-year exploration contracts. The PSA tenders have attracted the most international interest, with bids from Canada's Vermilion Energy, US-based Aspect Energy, Slovakia's Nafta and Poland's Unimot. The deadline for bids for the nine onshore blocks was May 28 and for the offshore Dolphin block was June 12, with results of both expected within one month of their deadlines (June 28 and July 12, respectively). Opimakh said four companies had submitted bids for the Dolphin block, located in the shallow waters of the Black Sea. "There is significant interest, especially taking in account ongoing political elections in Ukraine," he said. License rounds As well as the PSA tenders, three rounds of bidding for smaller exploration licenses have been held, hosted on an open electronic platform to ensure full transparency following accusations of wrongdoing in previous contract awards to upstream companies in the country. A total of 26 blocks were offered, with 16 block licenses awarded. Some 10 of the blocks across the three rounds received no bids. The big winner in the three bid rounds was Ukraine's state-owned UkrGasVydobuvannya (UGV), a subsidiary of Naftogaz Ukrayiny, with a total of 13 blocks awarded. The other three were awarded to private Ukraine-based upstream companies: Burisma, DTEK, and Yedyna Oil & Gas. A further six blocks were expected to be auctioned at a later date along with the 10 blocks not awarded in the first three rounds. The 36 blocks offered so far -- including those in the PSA tenders -- cover a combined acreage of some 25,000 sq km and are all in well-developed petroleum provinces of Ukraine, Opimakh said. "The chance of making a discovery is high," he said. Asked what obstacles there were to even more upstream activity in Ukraine, Opimakh said the country still needed to "simplify the access to geological data" to attract more investors. -- Stuart Elliott, [email protected] -- Edited by Dan Lalor, [email protected]
Club members only: Would foreign companies be allowed to extract Ukraine's gas? https://112.international/article/c...be-allowed-to-extract-ukraines-gas-41254.html Foreign investors are making another attempt to break into Ukraine’s gas production industry. The competition to attract investors to the development of nine oil and gas areas on the terms of production-sharing agreements involves six foreign companies. Foreigners are taking part in the competition for the shelf area: the name of the winning company to be announced no earlier than September. Ukrgazvydobyvannia state-owned enterprise and companies owned by Ukrainian oligarchs also participate in the competition. Crony gas perspectives Despite the declarations of the authorities, in recent years not a single major foreign investor was able to enter Ukraine. Permits for the best deposits were concentrated in the hands of the Ukrainian oligarchs and state-owned companies; about a third of them fell into the hands of the speculators. Almost 80% of gas in Ukraine is mined by the state-owned Ukrgazvydobyvannia and the semi-state-owned Ukrnafta (oligarch Igor Kolomoysky maintains control over the company). Private companies have no more than 20% of production – DTEK strategic holding company of oligarch Rinat Akhmetov, companies controlled by Igor Kolomoysky, Regal Petroleum, part of Smart Holding of MP Vadym Novinsky, Geo Alliance of oligarch Viktor Pinchuk, Burisma company of Mykola Zlochevsky. Related: Poland is ready to connect its gas pipeline to Ukrainian gas transporting system Another part of special permits is concentrated in the hands of second-hand dealers, who are waiting for the best time to resell the companies. At the same time, these blocks do not operate. According to the State Service of Geology and Mineral Resources of Ukraine, there is about a third of “frozen” special permits. After world giants Shell and Chevron left Ukraine in 2014-2015, foreign companies in the field of gas production were represented rather modestly. Cub Energy operates in Ukraine, the largest shareholder of which is Mikhail Afendikov, a native of eastern Ukraine, which has become a US citizen. The company implements, in particular, a joint (50 to 50%) project with the Slovak Nafta on the Uzhgorod gas area (301.4 sq. km). Gas production within the framework of this project is not in progress yet: a 3D seismic survey was carried out on the area, which made it possible to estimate possible reserves, three exploration wells were planned to be drilled. Since 2015, Nafta has been trying to become a party to the production sharing agreement for Yuzivska Square (Kharkiv and Donetsk regions), from which the American Shell emerged. According to the Nadra Ukraine national company, Yuzivska PSA Block is promising for the search for reserves of natural gas, shale gas, the gas of central basin type, methane, oil, condensate, and also coal deposits. Potential reserves of the area are estimated at 148 billion cubic meters of natural gas, 3200 billion cubic meters of shale gas/gas of the central-basin type. The area can give an estimated annual production of more than 10 billion cubic meters. Related: Russia ready to keep gas transit across Ukraine In mid-December, Ukraine’s Cabinet approved the transfer of 90% of the rights and obligations of Nadra Yuzivska to the production sharing agreement for Yuzivska PSA Block in favor of Yuzgaz B.V, belongs to entrepreneurs Yaroslav Kinakh and Timothy M. Elliott. Liubomyr Kopchyk, the director of Nafta representative office in Ukraine, voiced the intention to buy out 100% of Yuzgaz B.V from entrepreneurs, which would allow Nafta to enter the project and begin to study and develop Yuzivska PSA Block. The deal has not been completed yet. There are no necessary decisions of the Antimonopoly Committee and the Kharkiv Regional Council. Also, the environmental impact assessment is still not done. According to the World Bank, not only in the hydrocarbon industry but in general in the economy of Ukraine in 2018, foreign investment is only 2% of GDP, which is very small. Why are foreigners interested in Ukraine’s subsoil? The interest of foreign companies in the Ukrainian subsoil became obvious after two large-scale projects to attract investors to develop 9 areas on land and one on the Black Sea shelf. The total area of the plots exceeds 20 thousand square meters. The results of the competition on the shelf will be announced no earlier than September. After the major foreign players left in 2015, new ones did not come due to the lack of an attractive investment climate, said Roman Opimakh, Executive Director of the Association of Gas Production Companies of Ukraine. "For many years, Ukraine had a monopoly of state-owned companies on oil and gas production, and there were practically no auctions for oil and gas subsoil. Moreover, hydrocarbon rent was extremely high. There was no access to the subsoil, regulatory environment, and regulatory systems were unstable, access to land was problematic, local authorities conducted situational blocking of work - these factors have created an unfavorable investment climate," the press service of one of Ukraine’s largest gas producing companies D Fuel and Naftogaz Energy Complex (they participate in a competition to conclude a PSA on Sofiivska and Zinkivska PSA blocks). Related: Ukrtransgaz claims low tariffs on gas transporting cause lack of funds The current competition for 9 gas areas is the first serious competition and an attempt to attract an investor, said Vadym Bodayev, the head of the American Sigma Bleyzer Foundation in Ukraine (together with Aspect Energy applied for a PSA competition on Varvynska Block). In recent years, Ukrainian authorities have done a lot of work to change the regulatory and investment environment in the field of gas production, Yulia Borzhemsk, manager of regulatory policy at DTEK Naftogaz, noted. “They have elaborated the special stabilization clause regarding the fixation of stimulating rents for the period from January 1, 2018, to January 1, 2023,” she stated. What foreign companies claim to manage Ukrainian subsoil? Vermilion Energy, the Canadian company, claims for four out of nine development projects on land on a PSA basis. The stock is listed on New York and Toronto stock exchanges. According to Opimakh, the company's main business is concentrated in North America: the region accounts for 62% of Vermilion’s total production. The company operates in 10 more countries: seven of them are located in Europe: France, Germany, the Netherlands, Ireland, Croatia, Hungary, Slovakia. Presented by Vermilion and in Australia. Its market capitalization is $ 5.5 billion. Revenue in 2018 is $ 1.25 billion, profit is $ 240 million. The company has experience in the extraction of traditional and unconventional gas deposits. Slovakian Nafta together with EPH, a vertically integrated energy-industrial holding, which owns 68% of the company (another 29% is owned by the state of Slovakia), also claims to Sofiyivska PSA Block. EPH is among the ten largest energy companies in Europe. The total installed capacity of generating facilities, including two NPPs located in Slovakia, exceeds 24.3 GW, and the annual production of electrical energy reaches 100.2 TWh. Pretending to Varvynska Block, Sigma Bleyzer is the largest private equity fund operating in the country with assets of over $ 1 billion. Its founder, Mikhail Bleyzer, emigrated to the United States in 1978, and from the 90s began to conduct business in Ukraine. The most successful and well-known project of Blazer is the creation of Volya Kabel telecommunication company, which has become the largest provider of television and the Internet. The fund withdrew from the project in 2007, selling the company at a price peak for about $ 300 million with an initial investment of $ 12 million. In total, Sigma Bleyzer invested up to 100 million euros in telecommunications. One of the co-investors was the EBRD. Who else wants to produce gas? Competition to foreign companies in the PSA competition consists of the largest Ukrainian gas producers. In particular, the company DTEK Naftogaz, which specializes in deep drilling (over 5 thousand meters). Since 2013, the company has increased its gas production in Ukraine three times. DTEK Naftogaz participates in tenders for Sofiyivska and Zinkivska PSA Blocks. Ukraine’s well-known gas producers Geo Alliance Group of Viktor Pinchuk (claims for Sofiyivska Block), Ukrnaftoburinnia of Igor Kolomoysky, Vitaliy Homutynnik, and Pavlo Fuks (claims for Rusanivska and Zinkivska PSA Blocks) also take part in the competition. Ukrnaftoburinnia also claims on the site “Dolphin,” located on the shelf. Semi-state enterprise Ukrnafta, co-owned by Kolomoysky, also takes part in the competition. Despite the difficult situation with tax debt and regulatory restrictions, the company increased production by 10.1% over 5 months of the current year, producing 481.5 million cubic meters of gas. Ukrnafta filed applications for Rusanivska and Sofiyivska PSA Blocks. Eurogas Ukraine is one of the participants, but there is no information about it, it claims for Zinkivska Block. Related: Naftogaz comments on Gazprom statements about direct gas supplies contract from Russia However, the biggest irritation among market participants is caused by Ukrgazdobuvannia, which, in addition to the four areas for which it claims together with Vermilion, has applied for five other areas on land. The claims of Ukrgazdobuvannia in all nine areas are not clear. This is not a private company. According to our information, at least 70 licenses that the company already has are not completely used. Unofficially, Ukrgazdobuvannia talked about some interests in developing f the shelf. In addition, another subsidiary of Naftogaz, Chornomornaftogaz company, has extensive experience in drilling on the shelf. Why does Ukraine need foreigners in its gas production? In such conditions, it is difficult to predict whether foreign investors will be able to win the battle, however. However, if at least one foreign investor concludes a real PSA in Ukraine, there will be many more advantages than disadvantages. Related: Gazprom: Ukraine will not have time to sign gas contract in 2019 In particular, this will increase the attractiveness of Ukraine in the eyes of other foreign players, who are closely watching the development of the situation. It also activates the demand for services, and in fact, even the processes that occurred in the last 5 years in the country, gave a huge boost to the service market. Over the past three years, such players as Schlumberger, Halliburton, Baker Hughes GE, Weatherford, NOV, Bentec, Crosco, Honghua, National Oilwell Varco, Tacrom, Belarusneft have entered Ukraine over the past three years, Ukrgazdobuvannia press service reported.
https://www.bnnbloomberg.ca/video/how-ukraine-is-the-last-frontier-market-for-investors~1721640 How Ukraine is the 'last frontier market' for investors The Ukraine Reform Conference brings together government and private sector stakeholders to assess the progress of democratic reforms in the region. Lenna Koszarny, CEO of Horizon Capital, a leading private equity firm in Ukraine, joins BNN Bloomberg to discuss how the country is attracting investment.
Thanks Tom, the books tell the story and the company has the money, revenue, projects and connections to come back in a strong way. Still trading around 6X earnings based on the last few quarters which is nuts and drilling with the JV will start next month. This should be trading around 20-25 cents right now, but it will get there soon enough.
https://smallcappower.com/top-stories/canadian-oil-and-gas-stocks-momentum/ The Canadian oil and gas stocks we’ve identified with market caps under $1B have demonstrated strong price momentum of late SmallCapPower | July 18, 2019: Today we have drilled down and discovered four Canadian oil and gas stocks that have seen strong stock-price momentum thus far in 2019. We compared both the 30 day and year-to-date returns of oil & gas companies trading in Canada with a market cap under $1B and pinpointed four companies that have impressed us the most. *Share prices as at close Tuesday, July 16, 2019, data obtained from S&P Capital IQ Cub Energy Inc. (TSXV:KUB) – $0.09 Oil and Gas Exploration and Production Cub Energy has 311,000 gross acres in two prospective basins in Ukraine. KUB is focused on growing its acreage position in strategic basins in Ukraine. Cub aims to develop this asset portfolio to take advantage of natural gas prices by applying western equipment and expertise to prospective and underexplored basins. Learn more about Cub Energy here. Market Cap: $26.7M 30 Day Return: 30.8% YTD Return: 240% Average 90 Day Trading Volume: 490,000
KUB will have Q2 results in 2-3 weeks which should be another profitable quarter. On top of that we should get an update on the JV wells in Western Ukraine, the NRU that was worked on this summer and the recompletion wells. New photos were recently added to the company website showing that things are proceeding with the JV wells as drilling pads are being prepared: http://www.cubenergyinc.com/media_centre/gallery/
CUB ENERGY ANNOUNCES NET EARNINGS OF US $0.8 MILLION FOR FIRST HALF OF 2019 Cub Energy Inc. has released its unaudited interim financial and operating results for the three and six months ended June 30, 2019. All dollar amounts are express in United States dollars unless otherwise noted. This update includes results from Kub-Gas LLC ("Kub-Gas"), which Cub has a 35% equity ownership interest, Tysagaz LLC ("Tysagaz"), Cub's 100% owned subsidiary and CNG LLC ("CNG"), which Cub has a 50% equity ownership interest. Mikhail Afendikov, Chairman and CEO of Cub said: "We are pleased to announce net income $0.8 million during the six months ended June 30, 2019, and receipt of $1.7 million in dividends, plus a further $1.1 million in dividends subsequent to the quarter end. In western Ukraine, the CNG drilling contractor has begun mobilization of the rig for the planned three-well program. All costs for the three wells will be borne 100% by our partner. In addition, in eastern Ukraine, we are pleased to announce that Kub-Gas plans to drill a new well, the M-30 well, in Q4 2019." Operational Highlights Achieved average natural gas price of $6.28/Mcf and condensate price of $45.88/bbl during the six months June 30, 2019 as compared to $7.34/Mcf and $65.18/bbl for the comparative 2018 period. Production averaged 873 boe/d (97% weighted to natural gas and the remaining to condensate) for the six months June 30, 2019 as compared to 819 boe/d for the 2018 comparative period. The CNG drilling contractor has commenced mobilization of its rig for the three-well program on the Uzghorod licence. The costs of drilling will be incurred 100% by our partner.Kub-Gas recompleted the Olgovskoye-7 ("O-7") well to the M6v which increased its production to 0.6 million cubic feet of gas per day ("MMcf/d"). The M6v is a relatively small gas reservoir and the current rate is approximately 0.3 MMcf/d. Kub-Gas also recently recompleted two other wells for a combined additional increase of approximately 0.35 MMcf/d in field production. Kub-Gas uses its own completion equipment and personnel. Financial Highlights The Company reported net income of $0.8 million or $0.00 per share during the six months June 30, 2019 as compared to net income of $1.4 million or $0.00 per share during the same period in 2018.Netbacks of $20.50/boe or $3.42/Mcfe were achieved for the six months June 30, 2019 as compared to netback of $26.45/Boe or $4.41/Mcfe for the comparative 2018 period. The Company received $1.7 million in dividends during the six months June 30, 2019 as compared to $2.4 million in dividends in the comparative 2018 period. Subsequent to the quarter ended June 30, 2019, the Company recorded an additional $1.1 million in dividends from KUBGAS Holdings. Three Three Six Six Months Ended Months Ended Months Ended Months Ended June 30, 2019 June 30, 2018 June 30, 2019June 30, 2018 (in thousands of US Dollars) Petroleum and natural gas revenue 77 18 126 18 Pro-rata petroleum and natural gas revenue(1) 2,485 3,354 5,937 6,781 Revenue from gas trading(2) 2,975 3,079 7,454 8,749 Net income (loss) (205) 596 757 1,375 Income (loss) per share - basic and diluted (0.00) 0.00 0.00 0.00 Funds generated from operations(3) 678 596 643 993 Capital expenditures(4) 9 77 9 211 Pro-rata capital expenditures(4) 302 526 358 861 Pro-rata netback ($/boe) 16.19 26.98 20.5 26.45 Pro-rata netback ($Mcfe) 2.70 4.50 3.42 4.41 June 30,2019December 31, 2018 Cash and cash equivalents 7,429 7,236 Notesro-rata petroleum and natural gas revenue is a non-IFRS measure that adds the Company's petroleum and natural gas revenue earned in the respective periods to the Company's 35% equity share of the KUB-Gas natural gas sales that the Company has an economic interest in.During the three and six months ended June 30, 2019, the Company recorded $2,975,000 (2018 - $3,079,000) and $7,454,000 (2018 - $8,749,000) in revenue for gas trading and $2,616,000 (2018 - $2,877,000) and $6,856,000 (2018 - $8,393,000) for the cost of the sales for a net profit from gas trading of $359,000 (2018 - $202,000) and $598,000 (2018 - $356,000), respectively.Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes in non-cash working capital.Capital expenditures includes the purchase of property, plant and equipment and the purchase of exploration and evaluation assets. Pro-rata capital expenditures are a non-IFRS measure that adds the Company's capital expenditures in the respective periods to the Company's 35% equity share of the KUB-Gas and 50% equity share of CNG Holdings capital expenditures that the Company has an economic interest in. Management Change Effective September 1, 2019, subject to regulatory approval, the Company has appointed Sergey Panchuk as Chief Operating Officer, replacing Kerry Kendrick. Mr. Kendrick will remain with the Company as a senior advisor. Mr. Panchuk is a mechanical engineer and previously served as the Chief Executive Officer of Kub-Gas from 2006 to 2017. During Mr. Panchuk's tenure at Kub-Gas, the company grew to be the third largest private oil and gas producer in Ukraine. Since 2017, Mr. Panchuk, a resident of Ukraine, has been overseeing the Company's working interests in Ukraine. Supporting Documents Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated Management's Discussion and Analysis, have been filed on SEDAR (www.sedar.com) and has been posted on the Company's website at www.cubenergyinc.com. About Cub Energy Inc. Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in 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. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
A lot of investors are still ignorant to the fact that Russia will be cutting off Ukraine's natural gas in 4 months. Don't have to be an economist to understand supply/demand metrics here and that prices will sky rocket in that country, making producers like Cub Energy extremely important. https://www.rferl.org/a/kyiv-pursue...tial-russian-gas-transit-cutoff/30118706.html Kyiv Pursues Additional Reverse Gas Flows In Preparation For Potential Russian Gas-Transit Cutoff August 20, 2019 05:36 GMT Ukraine's state-run gas-transport company, Ukrtransgaz, is preparing to open another reverse-flow point for the import of an additional 1.5 billion cubic meters (bcm) of natural gas by January 1 in anticipation of Russia halting gas transit through the country when their contract expires at the end of the year. In an August 19 news release, pipeline operator Ukrtransgaz said the fuel will come from Romania via Ukraine's shared border with Moldova, where gas-metering stations will be upgraded on both sides to accommodate the expected volume of gas. "For Ukraine and Moldova, this project is of strategic importance, because by diversifying the gas-supply routes, both states will increase their dependability and the uninterrupted supply of gas to their customers," Ukrtransgaz said. The additional volume is the equivalent of 15 percent of last year's total imports. However, the 50-kilometer stretch of the modernized gas line will cross Transdniester, Moldova's pro-Russian breakaway region. Ukrtransgaz didn't focus on the issue of Russia possibly interfering with this gas flow. Since Ukraine's gas-transportation system is designed for output, pipelines need to be upgraded to open so-called reverse gas flows. Ukraine already receives gas this way from Slovakia, Poland, and Hungary. Kyiv stopped importing gas from Russia in November 2015 after Moscow invaded Ukrainian territory and annexed its Crimean Peninsula the previous year. Ukrtransgaz said it was currently in talks with its Romanian counterpart, SNTGN Tansgaz, as well as other countries to receive the gas from the Trans-Balkan pipeline. In 2018, Ukraine imported 10.6 billion cubic meters of gas, or one-third of what the country consumed. Fears that Russia's Gazprom will completely stop gas transit through Ukraine next year, when Moscow's Nord Stream 2 pipeline network goes online, are forcing Ukraine to store higher volumes of gas in underground storage facilities ahead of winter. Ukrtransgaz operates 12 gas-storage facilities that have a total capacity of 31 bcm. The company has completed upgrading five gas compressor stations that will allow them to pump gas from reservoirs in western Ukraine to eastern and southern Ukraine. The pipeline operator is owned by state-run Naftogaz Group, a vertically-integrated oil and gas company.
Cub Energy's CNG begins drilling Uzhgorod-101 well 2019-09-16 06:29 MT - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES SPUDDING OF FIRST OF THREE WELLS IN WESTERN UKRAINE CNG LLC, Cub Energy Inc.'s 50-per-cent-owned subsidiary which owns and operates the western Ukraine Uzhgorod licence, has commenced drilling of the Uzhgorod-101 (U-101) well. This is the first well in a three-well drill program for which all costs will be borne 100% by our partner, NAFTA International B.V. ("NAFTA"). The average planned depth of the wells is in range from 1,500 to 1,900 metres to evaluate several prospective horizons identified by 3D seismic. Mikhail Afendikov, Chairman and CEO of Cub said: "The spudding of the U-101 well is a major milestone for Cub. This is a cumulative effort between Cub and NAFTA as we performed 3D seismic, generated an inventory of prospects and are now executing with the drilling of our first exploratory well. These wells all qualify for the reduced 12% royalty." The Uzhgorod licence encompasses approximately 75,000 gross acres. The licence adjoins Cub's 100%-owned producing RK field and is near the producing Ptruksa field located on the Slovakian side of the border. About Cub Energy Inc. Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in 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. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
Some interesting information I found today. Recently, large cap Canadian company Vermillion Energy purchased almost 600,000 acres of natural gas leases in Eastern Ukraine, right in the same region as Cub Energy: https://www.newswire.ca/news-releas...-six-months-ended-june-30-2019-816869944.html Then I also saw on Vermillion Energy's website that they are partnered in Slovakia with NAFTA, the same partner KUB has right now, drilling the JV wells in the West. In Slovakia, we have partnered with NAFTA, the country's dominant E&P in a farm-in arrangement which grants us a 50% working interest to jointly explore 490,000 acres across two licenses. In Ukraine, we have been awarded two exploration licenses in a 50/50 partnership with Ukrgazvydobuvannya ("UGV“), a Ukrainian state owned gas producer: https://www.vermilionenergy.com/our-operations/europe/central-eastern-europe.cfm The point here is that Vermillion is likely to buy Cub Energy down the road for their production and large lease holdings.
https://ekonomika.sme.sk/c/22215680/nafta-zacala-na-ukrajine-hladat-nove-loziska-plynu.html Diesel began to look for new gas deposits in Ukraine The depth of all three wells will be in the range of 1500 - 1900 meters. 18 Sep 2019 at 14:15 TASR BRATISLAVA. Nafta has started exploration license and is looking for gas fields in western Ukraine. Together with American company Cub Energy Inc. announced the launch of the first of three planned exploration wells under the Uzhgorod license. Reducing dependence on imports The depth of all three boreholes will be in the range of 1500 - 1900 meters, the company said on its website. The Slovak company thus helps Ukraine to reduce its dependence on Russian gas imports. Under the license Uzhhorod Nafta with Cub Energy conducted a 3D seismic survey over an area of 118 square kilometers. As a result, several prospective sites were identified. "We consider working with Cub Energy Inc. to be a successful start to our foreign activities. We particularly appreciate that this partnership has given the opportunity to showcase our extensive experience in areas such as geology, bearing engineering and drilling," said Nafta CEO Martin Bartosovic. Mining license Cub Energy Inc. acquired a 20-year mining license in Uzhgorod covering an area of approximately 300 square kilometers in March 2016. Diesel, through its subsidiary Nafta International BV, entered the Ukrainian market after acquiring 50% of Uzhgorod license three months later. Uzhgorod license is a geological continuation of already explored areas in eastern Slovakia and follows the trend of discovered deposits in Slovakia. Nafta is the sixth largest operator of gas storage facilities in Europe and also a Slovak leader in the exploration and production of hydrocarbons. The company is active in Central European countries and is present in the Czech Republic, Germany and Austria in addition to Slovakia and Ukraine .
New Video From Cub Energy Showing Western JV Well Sites & Drilling http://www.cubenergyinc.com/media_centre/gallery/
Great info and nice thread, Dude. Thank you. It would appear the fortunes of Cub Energy are tied to the fortunes of the Ukraine. There may be an opportunity to get in for almost nothing, with the strife between Russia and Ukraine that is heating up. The company looks viable and politics tend to impart short term effects.
Hello TomB16, Thank you! nice to see other posters on these threads I start. What I like here is that Cub Energy already has established assets and revenue, has been profitable for most of the last 24 months, and has JV partners helping it grow(mitigating risk and expense). These 3 JV wells right now are free essentially and any revenue is a huge boost to the NAV. In my opinion, KUB is worth 9-10 cents just on the current producing assets. But the market has yet to give it a premium on the 4 wells being drilled in the next 90 days. That's fine, but if I had more cash(hopefully soon) I would still be adding. 4 good wells could get the SP to double by year end at the very least, I think. Russia is still going to cut off Ukraine January 2020, so imagine the natural gas prices doubling/triple, even for just half of next year. Cub would add some serious cash to the books.
Cub finds trace natural gas in first Uzhgorod well 2019-10-21 14:28 MT - News Release Mr. Mikhail Afendikov reports CUB ENERGY ANNOUNCES UPDATE ON DRILLING OF WELLS IN WESTERN UKRAINE Cub Energy Inc. has released results of the drilling of the first well in the Uzhgorod drilling program. The Uzhgorod-101 well showed that the prospective reservoir sands were water saturated with traces of natural gas that indicate there was gas migration, but no viable trapping mechanism in this particular prospect. CNG LLC, Cub's 50-per-cent-owned subsidiary, which owns and operates the western Ukraine Uzhgorod licence, obtained valuable subsurface geological and petrophysical data from the U-101 well that will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on the licence. This upcoming study may result in revising the drilling priorities for the identified prospect inventory. CNG has released the drilling rig while these new data are being analyzed. The Uzhgorod licence encompasses approximately 75,000 gross acres. The licence adjoins Cub's 100-per-cent-owned producing RK field and is near the producing Ptruksa field located on the Slovakian side of the border. The U-101 well was the first well in a planned three-well drill program for which all costs will be borne 100 per cent by Cub's partner. About Cub Energy Inc. Cub Energy is an upstream oil and gas company, with a proven record of exploration and production cost efficiency in 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. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
I just found some ''royalty-related'' information by doing some digging on google. Not that I try to smear them, just finding worthwhile information( such as what I've said regarding Raven Quest and Australia https://masterinvestor.co.uk/latest/cub-energy-reports-production-was-up-in-ukraine-in-2014-but-the-group-remains-concerned-about-fiscal-terms/ https://masterinvestor.co.uk/latest/cub-energy-is-extremely-unhappy-with-amendments-to-the-tax-code-of-ukraine-concerning-gas-royalties/amp/ As we reported early in January, however, the not so good news was the announcement of changes concerning gas prices. Cub CEO Mikhail Afendikov made it obvious last year he was very unhappy with the royalty situation. The temporary increase in royalty rates to 55 per cent impacted on net backs for the Cub to the tune of 50 per cent.
This is very old information. Why are you bringing it up? Royalty rates dropped which encouraged the JV and drilling from 2016 on. Here's the most recent presentation about it: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf
Ukraine conflict: Front-line troops begin pullout https://www.bbc.com/news/world-europe-50221995 Ukrainian government troops and Russian-backed separatists have begun withdrawing from a key front-line area in eastern Ukraine. "The separation of forces in Zolote is happening right now," Ukrainian Foreign Minister Vadym Prystaiko said. A separatist official quoted by Russia's RIA news agency said both sides had fired coloured signalling rockets to mark both sides' withdrawal. A deal was agreed this month to end the Donbas region's five-year conflict. Under the deal, both sides were to start withdrawing from their positions in the towns of Zolote and Petrivske on 9 October. But there were skirmishes between Ukrainian police and war veterans, who tried to prevent the troop pullout. Will a deal with Russia bring peace to Ukraine? On 26 October Ukrainian President Volodymyr Zelensky visited the scene and ordered the war veterans to disarm. Mr Prystaiko said shooting in Zolote stopped on 17 October and the withdrawal began on Tuesday once OSCE international monitors were there to check compliance by both sides. Ukraine's military high command confirmed that the withdrawal had begun at 12:00 local time (10:00 GMT). Image copyrightGETTY IMAGES Image caption Military representatives from both sides arranged the withdrawal with the OSCE How did this peace deal come about? For at least two years the fighting has been much less intense than back in 2014. There have been daily exchanges of fire, but the front line has remained generally static. A framework ceasefire deal was agreed in February 2015 - the Minsk agreement - but was soon violated as fighting resumed. This year there have been several significant moves towards a peace settlement: President Zelensky was elected by a big majority, having set a Donbas peace deal as his number one priority In June, Ukrainian troops and separatists withdrew a kilometre from the front-line town of Stanytsia Luhanska In September, a long-awaited prisoner swap with Russia was finally completed On 1 October, Ukraine, Russia and the separatists agreed a deal to bring special status to the separatist-held parts of Donetsk and Luhansk regions (jointly called the Donbas) What could be the next steps? Mr Prystaiko said that if the Zolote disengagement goes according to plan, both sides will also withdraw from their positions in Petrivske within the next 10 days. He also voiced hope that, next month, President Zelensky would meet Russian President Vladimir Putin for peace talks, mediated by the leaders of France and Germany, in what is known as the Normandy format. "Several times already it was postponed for technical reasons, but you see how complicated all this is," he told reporters on Tuesday. "We are doing all we can to make this meeting happen." Media captionSurviving the chaos in Ukraine - and living with the memories The new impetus stems from a plan proposed in 2016 by Germany's then-foreign minister, Frank-Walter Steinmeier, calling for: free and fair elections in the east under Ukrainian law; verification by the OSCE international security organisation; and self-governing status for Donetsk and Luhansk in return. What triggered the conflict? Pro-Russian separatists seized control of large swathes of Donetsk and Luhansk regions in April 2014, just after Russia's annexation of Ukraine's Crimea peninsula. It was an insurgency against the new pro-Western authorities in the capital Kyiv, who had ousted the pro-Russian President Viktor Yanukovych in street protests dubbed the "Maidan Revolution". The separatists later declared independence from Ukraine - but no country has recognised their "republics". Nato and Western intelligence experts have repeatedly accused Russia of sending heavy weapons and combat troops into eastern Ukraine to help the rebels. Russia denies that, but admits that Russian "volunteers" are helping the rebels.
