Saw the news today on this stock. Seems to be a decent value, altho business is only in the Ukraine. They did earn .01 per share US in 2016, not bad for a nat gas producer/developer that trades at .045 cad. Am on the bid at .045 , did not get any today. Cub Energy earns $3.93-million (U.S.) in 2016 2017-03-22 14:08 MT - News Release Mr. Mikhail Afendikov reports CUB ENERGY INC. ANNOUNCES Q4 2016 FINANCIAL AND OPERATIONAL RESULTS Cub Energy Inc. today released its audited annual financial and operating results for the fourth quarter of 2016. All dollar amounts are expressed in U.S. dollars, unless otherwise noted. This update includes results from KUB-Gas LLC, in which Cub has a 35-per-cent equity ownership interest (increased from 30 per cent, effective on Feb. 8, 2016), and Tysagaz LLC, Cub's 100-per-cent-owned subsidiary. Mikhail Afendikov, chairman and chief executive officer of Cub, said: "Two thousand sixteen saw Cub Energy return to profitability with reported net income of $3.9-million, or one cent per share. Cub's cash position and working capital also improved in 2016 with an ending cash position of $4.6-million and positive working capital of $3.3-million as at Dec. 31, 2016." Operational highlights: Royalty rates for natural gas in Ukraine declined from 55 per cent to 29 per cent, effective on Jan. 1, 2016, which materially improved the company's netbacks and net income. Production averaged 1,152 barrels of oil equivalent per day (97 per cent weighted to natural gas and the remaining to condensate) for the quarter ended Dec. 31, 2016, which decreased 15 per cent as compared with the 1,353 barrels of oil equivalent per day in the comparative 2015 quarter and relatively flat as compared with the 1,171 barrels of oil equivalent per day average for the third quarter ended Sept. 30, 2016. The decrease in production for the quarter ended Dec. 31, 2016, as compared with the same period in 2015 was a result of the temporary suspension of the RK field on April 1, 2016, due to the termination of a gas blending contract. The company hopes to commission the nitrogen rejection unit (NRU) and resume production of the RK field in the second quarter of 2017. The company achieved average natural gas price of $6.39 per thousand cubic feet and condensate price of $61.59 per barrel during the quarter ended Dec. 31, 2016, as compared with $7.22 per thousand cubic feet and $42.78 per barrel for the comparative 2015 quarter, and $5.48 per thousand cubic feet and $63.99 per barrel for the third quarter ended Sept. 30, 2016. On March 11, 2016, the company's Ukrainian subsidiary was awarded a 20-year Uzhgorod production licence covering approximately 75,000 acres in western Ukraine. On Dec. 28, 2016, the company's Ukrainian subsidiary was awarded a 20-year Stanivske production licence covering approximately 31,000 acres in western Ukraine. The company is exploring its alternatives for the licence, including potential joint venture partners. On July 8, 2016, the company announced that it had entered into a share purchase agreement (SPA) and shareholders' agreement with a third party, whereby the third party earns a 50-per-cent interest in the company's newly formed subsidiary, CNG Holdings Netherlands BV, which, in turn, owns CNG LLC (Ukraine LLC), the 100-per-cent owner of the Uzhgorod production licence in western Ukraine. Pursuant to the terms of the SPA, the third party is to: (i) pay Cub 1.5 million euros ($1.6-million) upon transfer of the 50-per-cent shares (paid), (ii) finance a 100-square-kilometre 3-D seismic survey within 20 months of closing, (iii) finance the drilling of first three wells within four years of closing and (iv) finance the tie-in costs of the first three wells up to a maximum 200,000 euros ($200,000) per well within four years of closing. Financial highlights: The company had netbacks of $25.60 per barrel of oil equivalent, or $4.27 per thousand cubic feet equivalent, for the quarter ended Dec. 31, 2016, as compared with netback of $13.13 per barrel of oil equivalent, or $2.19 per thousand cubic feet equivalent, for the comparative 2015 quarter. In addition, netbacks were $20.89 per barrel of oil equivalent, or $3.48 per thousand cubic feet equivalent, for the third quarter ended Sept. 30, 2016. Netbacks in 2016 improved compared with 2015 as a result of the reduced royalty rate, effective on Jan. 1, 2016, but somewhat offset by lower natural gas prices. During the three months ended Dec. 31, 2016, the company received dividends of approximately $800,000 (2015 -- nil) from KUBGAS Holdings Ltd., which owns 100 per cent of KUB-Gas. The National Bank of Ukraine (NBU) eased certain capital controls by allowing limited dividends. The company expects to continue to repatriate dividends to the extent possible and allowed by the NBU, although there are no assurances the NBU will continue to ease restrictions into 2017. During the three months ended Dec. 31, 2016, the company's Ukrainian subsidiaries received proceeds of $3.8-million (2015 -- nil) from KUB-Gas pursuant to unsecured, non-interest-bearing loan agreements between the parties. Commencing in August, 2016, the company's 100-per-cent-owned subsidiary, Tysagaz, began taking possession of its 35-per-cent ownership of gas produced at KUB-Gas. Tysagaz purchased the gas from KUB-Gas at the same price that KUB-Gas sold its gas to an affiliate of the majority shareholder of KUB-Gas. During three months ended September, 2016, the company recorded $4.8-million in gas sales and $4.5-million in cost of the sales for a net profit from gas trading of $300,000, as compared with no such transactions during 2015. FINANCIAL HIGHLIGHTS (in thousands of U.S. dollars) Three months ended Dec. 31, Year ended Dec. 31, 2016 2015 2016 2015 Petroleum and natural gas revenue $- $923 $1,456 $4,210 Pro rata petroleum and natural gas revenue (1) 4,023 5,489 17,704 22,806 Revenue from gas trading 4,793 - 6,915 - Net income (loss) (308) (1,053) 3,931 (3,141) Income (loss) per share -- basic and diluted (0.00) (0.00) 0.01 (0.01) Funds generated from operations (2) (573) (797) (2,569) (1,746) Pro-rata funds generated from operations (3) 857 (15) 6,219 760 Capital expenditures (4) 887 72 1,350 199 Pro rata capital expenditures (4) 1,296 476 3,074 1,865 Pro rata netback ($/boe) 25.60 13.13 22.40 12.74 Pro rata netback ($/mcfe) 4.27 2.19 3.73 2.12 Working capital (deficit) 3,255 (1,722) Cash and cash equivalents 4,585 1,360 Long-term debt 6,332 2,000 (1) Pro rata petroleum and natural gas revenue is a non-IFRS (international financial reporting standards) measure that adds the company's petroleum and natural gas revenue earned in the respective periods to the company's 35-per-cent (2015 -- 30 per cent) equity share of the KUB-Gas natural gas sales that the company has an economic interest in. (2) Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes in non-cash working capital. (3) Pro rata funds from operations is a non-IFRS measure that adds the company's funds from operations in the respective periods to the company's 35-per-cent (2015 -- 30 per cent) equity share of the KUB-Gas and 50-per-cent equity share of CNG Holdings funds from operations that the company has an economic interest in. (4) Capital expenditures includes the purchase of property, plant and equipment, and the purchase of exploration and evaluation assets. Pro rata capital expenditures is a non-IFRS measure that adds the company's capital expenditures in the respective periods to the company's 35-per-cent (2015 -- 30 per cent) equity share of the KUB-Gas and 50-per-cent equity share of CNG Holdings capital expenditures that the company has an economic interest in. Outlook The company expects KUB-Gas to drill two new Olgovskoye field wells in 2017, which will be self-financed by KUB-Gas. Site preparation is complete for the O-26 well and will be followed by the O-28 well later in the year. KUB-Gas recently commenced a 150-kilometre 2-D seismic survey on the West Olgovskoye licence in eastern Ukraine. In western Ukraine, the company is working toward the NRU becoming operational and resuming production at the RK field. Also in western Ukraine, CNG LLC expects to complete its 118-square-kilometre 3-D seismic program in 2017. 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 and has been posted on the company's website. 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.
Loaded up heavily since August. This one was brought to my attention by Mouserman. Too bad he doesn't post here anymore.
Surprised that there wasnt more volume after that year-end report. Must be the area they operate in, which has seen considerable social unrest and political problems. At one point had the highest royalty rates in the world, but as nat gas production in the Ukraine began to disappear , the powers that be realized high royalties and taxes does nothing to aid in the Ukraine becoming self reliant on their energy needs. They are still at the mercy of the foreign suppliers of nat gas.
Picked up a few at .045 , will wait and see where this goes and perhaps buy more again lower, with some capital from dividends when they come in. Patience is the key with these undervalued stocks that actually earn a profit Q after Q.
Leede has been dumping at the bid for some odd reason. Not sure why. Great financials for the past year. Sold 800,000 shares this week at .043 average.
a few dumped at .03 today. Seems like the street not excited about the last news and financing. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 13.0px Arial} p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Arial; color: #666666; min-height: 14.0px} p.p3 {margin: 0.0px 0.0px 0.0px 0.0px; font: 13.0px Verdana} p.p4 {margin: 0.0px 0.0px 0.0px 0.0px; font: 13.0px Verdana; min-height: 16.0px} span.s1 {letter-spacing: 0.0px} Cub Energy $1-million (U.S.) loan agreement 2017-06-20 14:27 MT - Miscellaneous The TSX Venture Exchange has accepted a proposed loan agreement between Cub Energy Inc. and Kerry Kendrick, the chief operating officer of the company. Pursuant to the terms of the agreement, Mr. Kendrick will provide the company with a loan of $1-million (U.S.) for the purchase of a nitrogen rejection unit. The loan will have a term which expires on June 30, 2019, and payments on the principal will be made in four equal quarterly instalments, due Sept. 30, 2018, Dec. 31, 2018, March 31, 2019, and June 30, 2019. The loan will bear an interest rate of 6 per cent per year. As additional consideration for the loan, Mr. Kendrick will receive 2.2 million common shares of the company, which will be issued on receipt of the loan to the company. Mr. Kendrick will also be granted security for the loan through a guarantee on Gastek LLC, in an amount equal to the principal of the loan.
