Cub Energy obtains $792K (U.S.) loan from Ukraine bank 2021-06-01 12:28 MT - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES UKRAINE BANK LOAN; PARTIAL REPAYMENT OF PELICOURT LOAN Cub Energy Inc.'s 100-per-cent-owned subsidiary, Tysagaz LLC, has entered into a 650,000-euro $792,000 (U.S.)) loan with a Ukraine bank. The Ukraine bank loan will bear interest at 7 per cent, will mature in November, 2023, and is secured by the Jenbacher power generation units and a general guarantee by the company. Proceeds of the loan will be used to make a principal repayment of $750,000 (U.S.) on the Pelicourt Ltd. shareholder loan that bears interest at 10.8 per cent. The remaining balance on the Pelicourt loan is $900,000 (U.S.) following the prepayment. "Cub is pleased to establish a banking relationship with a local Ukraine financial institution as it builds out its power generation business," Patrick McGrath, interim chief executive officer of Cub stated. "The loan and concurrent repayment of a similar amount on the Pelicourt loan allows the company to lower its interest rate from 10.8 per cent to 7 per cent and resulting cash savings." About Cub Energy Inc. Cub Energy is a power and upstream oil and gas company. 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 power and oil and gas assets within a high-pricing environment. We seek Safe Harbor.
From Cub Energy's News Letter This Week: Cub Energy welcomes you to view the below video demonstrating Cub's transition in western Ukraine to power generation. The project is located in the Transcarpathian Basin bordering Hungary, Slovakia and Romania. Cub invested in the power generation business to utilize its existing natural gas field and to supply energy to an area that is underserved. The Company continues to explore further opportunities including clean technology initiatives. http://www.cubenergyinc.com/media_centre/gallery/
Cub Energy earns $483,000 (U.S.) in Q2 2021 2021-08-25 14:44 ET - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES SECOND QUARTER RESULTS Cub Energy Inc. has released its unaudited financial and operating results for the interim six months ended June 30, 2021. All dollar amounts are expressed in United States dollars unless otherwise noted. This update includes results from Kub-Gas LLC, which Cub has a 35-per-cent equity ownership interest, Tysagaz LLC, Cub's 100-per-cent-owned subsidiary, and CNG LLC, which Cub has a 50-per-cent equity ownership interest. Patrick McGrath, chief executive officer of Cub, said: "We are pleased to report $1,488,000 in profit from our gas trading business during the six months ended June 30, 2021, which resulted in the company reporting net income of $746,000 for same period. This was the best net income growth in over two years. Other significant accomplishments during the current period include the commencement of commercial production of the new power generation business and entering into an agreement to divest its non-core western Ukraine licence for proceeds of up to approximately $1-million." Operational highlights Achieved average natural gas price of $6.50/Mcf (thousand cubic feet) and condensate price of $68.12/bbl (barrel) during the six months ended June 30, 2021, as compared with $2.77/Mcf and $33.01/bbl for the comparative 2020 period. The increase in commodity prices is due, in large part, to a colder European winter, the lessening global impacts of COVID-19 and geopolitical events. The company's two Jenbacher power units were installed and commenced commercial production in the second quarter of 2021. The power generation units produced 2,253 megawatts an hour (MWh) for the period of commencement in mid-May, 2021, to June 30, 2021, at an average price of $73/MWh. Production averaged 532 boe/d (barrels of oil equivalent per day) (97 per cent weighted to natural gas and the remaining to condensate) for the six months ended June 30, 2021, as compared with 648 boe/d for the comparative 2020 period. On April 30, 2021, the company announced it had entered into a share purchase agreement (SPA) to sell its 50 per cent interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the company is to receive 800,000 euros ($970,000 (U.S.)) for its 50-per-cent interest in CNG Holdings. The consideration consists of 600,000 euros ($728,000 (U.S.)) in cash on closing and 200,000 euros ($242,000 (U.S.)) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021. Financial highlights The gross profit on the company's gas trading business increased to $1,488,000 during the six months ended June 30, 2021, as compared with $332,000 in gross profit in the comparative 2020 period. The company reported net income of $746,000 or zero cents per share during the six months ended June 30, 2021, as compared with a net loss of $1.9-million or one cent per share during the 2020 comparative period. Netbacks of $19.17/boe or $3.20/Mcfe were achieved for the six months ended June 30, 2021, as compared with netback of $3.77/Boe or $0.63/Mcfe for the six-month comparative period in 2020. Reader advisory With the current cash resources, negative working capital, fluctuating commodity prices, currency fluctuations, reliance on a limited number of customers, the company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the company to continue as a going concern and meet its obligations as they become due. Supporting documents Cub's complete interim reporting package, including the unaudited consolidated interim financial statements and associated management's discussion and analysis, have been filed on SEDAR and have been posted on the company's website. About Cub Energy Inc. Cub Energy is a power and 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 assets within a high-commodity-price environment. We seek Safe Harbor.
Cub Energy Inc. Q2 2021 Financials + MD&A (All Information Can Be Found On Sedar) Ticker Symbols: KUB.V & TPNEF.OTCQB Price: $0.015 Common Shares: 314,215,355 Market Cap: $4.71 million CAD Insider/Institutional Holdings: 172,466,105 or 55% of common shares Options: 10,900,000 million Most Recent Company Presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf Financials – All Numbers Are Express In US Dollars (Ending June 30, 2021) ASSETS Cash & Equivalents: $5,137,000 Prepaid Expenses: $80,000 Trade & Other Receivables: $83,000 Equity Investments: $3,041,000 Property, Plant & Equipment: $1,817,000 Non-Current Receivables: $626,000 Total Assets: $10,784,000 LIABILITIES Loan From KUB-Gas: $5,243,000 Trade & Other Payables: $3,646,000 Shareholder Loan: $938,000 – owed to prior CEO who also holds nearly half of company stock Bank Loan(Current): $303,000 Bank Loan(Non Current): $454,000 Provisions: $342,000 Total Liabilities: $10,926,000 Quarterly Performance Net Revenue: $2,071,000 – RK field was only producing for half of the quarter Income From Equity Investment: $82,000 Operating Expenses + G&A: $1,670,000 Foreign Currency Loss: $35,000 Comprehensive Income: $448,000 Note: Cub Energy Inc. has now generated three quarters of back to back profits Q4 2020 Profit: $165,000 USD Q1 2021 Profit: $263,000 USD Q2 2021 Profit: $483,000 USD Total Profit Earned In 3 Quarters: $911,000 USD or $1.15 million CDN (based on current exchange rate) MD&A Highlights For Q2 2021 • The Company reported net income of $746,000 or $0.00 per share during the six months ended June 30, 2021 as compared to a net loss of $1,900,000 or $0.01 per share during the comparative 2020 period. The Company benefited from higher natural gas prices. • Energy generation of 2,253 MWh from the Jenbacher power generation project in Western Ukraine for the period of commencement in mid May 2021 to June 30, 2021 at an average price of $73/MWh. • Netbacks of $19.17/boe or $3.20/Mcfe were achieved for the six months ended June 30, 2021 as compared to netback of $3.77/Boe or $0.63/Mcfe for the six month comparative period in 2020. • Achieved average natural gas price of $6.50/Mcf and condensate price of $68.12/bbl during the six months ended June 30, 2021 as compared to $2.77/Mcf and $33.01/bbl for the comparative 2020 period. The increase in commodity prices is due, in large part, to a colder European winter, the lessening global impacts of COVID-19 and geopolitical events. • Production averaged 532 boe/d (97% weighted to natural gas and the remaining to condensate) for the six months ended June 30, 2021 as compared to 648 boe/d for the comparative 2020 period. • In May 2021, the Company commenced commercial production of its Jenbacher gas power generation units that are converting natural gas produced from its wholly-owned RK gas field into power that is being sold in western Ukraine at local market rates. • On April 30, 2021, the Company announced it had entered into a share purchase agreement (“SPA”) to sell its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 (US $970,000) for its 50% interest in CNG Holdings. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021. • The company is monitoring recommendations by the public health authorities related to COVID-19 in all its operating regions and is adjusting operational requirements as required. All of the Company's facilities remain fully operational. Western Ukraine Tysagaz Assets (100% Interest) The Company commenced power generation in mid-May 2021 through two Jenbacher gas power generation engines that are converting the natural gas produced from the RK field into power that is being sold in western Ukraine at local market rates. The power generation units have the capacity to produce as much as 3 megawatts (“MW”) of power utilizing the 100% owned RK gas field. Eastern Ukraine KUB-Gas Assets (35%) There are approximately ten recompletion opportunities with “behind pipe pays” that Kub-Gas is reviewing with one recompletion planned for the third quarter of 2021. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Kub-Gas uses its own completion equipment and personnel. Kub-Gas is also planning on drilling an exploration well in 2021 on the Olgovskoye licence (well O-114) to a depth of approximately 2,800 meters that will target multiple zones. Western Ukraine CNG Assets (50% Interest) On April 30, 2021, the Company announced it had entered into an agreement to sell its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 (US $970,000) for its 50% interest in CNG Holdings. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval and is expected to close in Q4 2021. Ukraine Currency The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.18 UAH/USD at June 30, 2021, which appreciated approximately 5% as compared to the 28.27 UAH/USD at December 31, 2020.
So what are the catalysts for KUB right now: 1) Positive cashflow from KUB-GAS operations. Still producing over 500+BOED 2) Positive cashflow from the RK field electricity generation (asset value has not been added back yet. Over $10 million written off over the last few years because of this project, but there are reserves they can now add back) 3) Drilling of a new well (mentioned in the presentation + MD&A) 4) Well recompletions (also mentioned in the presentation + MD&A) 5) Rising natural gas prices in Ukraine. Increased commodity price means larger earnings going forward 6) Pending sale of Uzhgorod, which will add around $1.2 million CDN cash back to the books
Cub Energy to sell Kubgas stake for $10.6M (U.S.) 2021-09-07 08:12 ET - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES LETTER AGREEMENT FOR SALE OF 35% INTEREST IN KUBGAS Cub Energy Inc. has entered into a letter agreement dated Sept. 3, 2021, with its partner to sell its 35-per-cent interest in Kubgas Holdings Ltd. The sale is for a deemed consideration of approximately $10.6-million (U.S.). The consideration comprises a cash payment of $2.6-million (U.S.) and the settlement of approximately $8-million (U.S.) in debt that the company owes Kubgas, subject to adjustments on the completion date. The sale terms were negotiated at arm's length with the partner, and closing of the transaction is subject to the parties entering into a definitive agreement and the company obtaining TSX Venture Exchange approval. Patrick McGrath, chief executive officer of Cub, said: "Cub Energy's founder and former CEO, Mikhail Afendikov, built Kubgas into one of the largest natural gas producers in Ukraine during the 2000s. The company is proud of its success, but it has decided to divest its remaining interest in this asset. The sale will add cash and substantially deleverage Cub's balance sheet by reducing 80 per cent of the company's debt as of the last quarterly financial results. The divesture allows Cub to focus on its 100-per-cent-owned western Ukraine gas assets and its associated power generation business. The company continues to review new opportunities." About Cub Energy Inc. Cub Energy is a power and 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 assets within a high commodity price environment. We seek Safe Harbor.
What does this sudden news release mean for Cub Energy: 1) Cub Energy has de-risked itself politically, as mentioned in the news. This company was getting a huge discount before because of fears that Rebels/Russians would takeover their assets in East. This happened to some assets in 2014, so the fear is justified. This is no longer an issue. 2) Cub Energy has also de-risked itself from a company balance sheet standpoint. Yes the cash flow will be reduced, but who cares about revenue if the liabilities/debt are too high. Natural Gas rates are very good right now, but Cub Energy has gone from almost 1000boed in 2018 to now around half of that. That means even with $500k USD profits, cleaning the books would take several years, assuming gat prices stay above $6 an MCF for the next 5 years, which there’s no certainty. 3) Cub Energy has also sold the Uzhgorod lease for $970,000USD, which means it’s only asset is the RK Field and this is more a utility asset then a regular natural gas producing field. So what does this all boil down to once both asset sales are complete and we are left with cash and the RK field. Lets take the last quarterly results and combine them with what we are expecting from this deal. - Last quarter came out 2 weeks ago and the Assets were at $10.8 million USD($5.14 million being cash) and liabilities were $10.93 million. - Uzhgorod will add $970,000 USD in cash once the deal is completed - Deal announced today worth $10.6 million USD will reduce the debt by $8 million and leave around $2.6 million USD in cash So let’s start adding these up. We don’t know RK’s value, but the company wrote off over $10 million from that asset, so I’m guessing that will be added back, plus the generators that were purchased as assets. That being said, lets assume for a minute that only cash is left on the assets, which is $5.14 million. CASH: $5.14M(current cash on hand) + $0.97M(Uzhgorod) + $2.6M(KUB Gas Sale) = $8.71 million USD or $11 million CAD based on today’s rates. That works out to $0.035c CAD per share just in cash. No value for RK added. Most juniors trade at 2X cash just FYI. DEBT/LIABILITIES: $10.93M –$8M = $2.93M left in Debt/Liabilities. This is clearly mentioned on the news release. So what are we left with in the end, and this is a rough estimate, as well as assuming both deals close: - $8.71 million USD in CASH - $2.93M million USD in Debt/Liabilities RK Field which is worth quite a bit. Last quarter it cash flowed $178K USD for only half a quarter, so it would be safe to say that $300K cash flow per quarter is realistic, or around $1.2 million USD per year. $178K was revenue from electricity sales and cost on the books show $67K USD, so the margins are good.
Cub Energy Announces Third Quarter Results HOUSTON, TX and CALGARY, AB / ACCESSWIRE / November 29, 2021 / Cub Energy Inc. ("Cub" or the "Company") (TSX-V:KUB), a Ukraine-focused energy company, announced today its unaudited financial and operating results for the interim nine months ended September 30, 2021. All dollar amounts are expressed 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. Patrick McGrath, CEO of Cub said: "We are pleased to report $2,138,000 or $0.01 per share in net income during the nine months ended September 30, 2021. The increase in the price of natural gas was the primary contributor to the 2021 financial results. Cub also signed a letter agreement for the sale of its 35% equity interest in Kub-Gas for deemed consideration of $10.6 million. The proposed sale will deleverage Cub's balance and allow Cub to focus on its 100% owned assets and new opportunities." Operational Highlights Achieved average natural gas price of $7.66/Mcf and condensate price of $69.16/bbl during the nine months ended September 30, 2021 as compared to $3.59/Mcf and $40.33/bbl for the comparative 2020 period. Production averaged 513 boe/d (97% weighted to natural gas and the remaining to condensate) for the nine months ended September 30, 2021 as compared to 638 boe/d for the comparative 2020 period The power business generated 5,546 megawatts an hour ("MWh") from the Jenbacher power units in Western Ukraine for the period of commencement in mid-May 2021 to September 18, 2021 at an average price of $71/MWh. Due to the recent material increase in natural gas prices and no parallel increase in power prices, the Company has increased its sales of natural gas at the RK field and temporarily suspended the power business as of September 18, 2021 as this strategy is more profitable at present. The Company will continue to monitor the prices of both commodities and utilize whichever one produces the better return for shareholders. On September 7, 2021, the Company announced it had entered into a letter agreement to sell its 35% interest in KUB-Gas for a cash payment of $2,600,000 and settlement of approximately $8,000,000 in debt for total deemed consideration of approximately $10,600,000. The closing of the transaction is subject to the parties entering into a definitive agreement and regulatory approval. The Company continues to work towards closing the sale of its 50% interest in CNG Holdings, which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company is to receive €800,000 for its 50% interest in CNG Holdings. The consideration consists of €600,000 in cash on closing and €200,000 is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval. Financial Highlights The gross profit on the Company's gas trading business increased to $2,311,000 during the nine months ended September 30, 2021 as compared to $899,000 in gross profit in the comparative 2020 period. The Company reported net income of $2,138,000 or $0.01 per share during the nine months ended September 30, 2021 as compared to a net loss of $2,274,000 or $0.01 per share during the comparative 2020 period. Netbacks of $22.90/boe or $3.82/Mcfe were achieved for the nine months ended September 30, 2021 as compared to netback of $9.13/Boe or $1.52/Mcfe for the nine month comparative period in 2020. (in thousands of US Dollars) Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Revenue from gas trading 2,698 1,255 6,180 4,382 Pro-rata petroleum and natural gas revenue(1) 2,089 659 4,498 2,713 Revenue from sale of electricity 281 - 459 - Petroleum and natural gas revenue 114 37 305 146 Net income (loss) 1,392 (374 ) 2,138 (2,274 ) Income (loss) per share - basic and diluted 0.00 (0.00 ) 0.01 (0.01 ) Funds generated from (used in) operations 330 (232 ) 1,414 (325 ) Capital expenditures(2) - - 352 - Pro-rata capital expenditures(2) 146 - 601 869 Pro-rata netback ($/boe) 31.00 9.11 22.90 9.13 Pro-rata netback ($Mcfe) 5.17 1.52 3.82 1.52 September 30, 2021 December 31, 2020 Cash and cash equivalents 5,385 4,424 Notes: Pro-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. 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. For purposes of the pro-rata netback calculation, the Company's profit from gas trading is added to the revenue of Kub-Gas to better reflect the true natural gas price achieved and field netback. Reader Advisory With the current cash resources, negative working capital, fluctuating commodity prices, currency fluctuations, reliance on a limited number of customers, the Company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the Company to continue as a going concern and meet its obligations as they become due. Supporting Documents Cub's complete interim reporting package, including the unaudited consolidated 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 a power and 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 assets within a high commodity price environment. For further information please contact us or visit our website: www.cubenergyinc.com Patrick McGrath Chief Executive Officer (832) 499-6009 [email protected]
Cub Energy closes sale of CNG Holdings interest 2021-12-21 10:14 ET - News Release Mr. Patrick McGrath reports CUB ENERGY ANNOUNCES CLOSING OF SALE OF CNG INTEREST Cub Energy Inc. has closed the sale of its 50-per-cent interest in CNG Holdings Netherlands BV, which in turn owns CNG LLC (Ukraine LLC), the 100-per-cent owner of the Uzhgorod licence in western Ukraine, as originally announced on April 30, 2021. Cub is to receive consideration of up to 800,000 euros ($900,000 (U.S.)) for its 50-per-cent interest in CNG consisting of 600,000 euros ($675,000 (U.S.)) in cash received on closing and 200,000 euros ($225,000 (U.S.)) as a contingent payment on certain future events including a commercial discovery. Patrick McGrath, Cub's chief executive officer, said, "Cub is pleased to have monetized this asset as part of its strategy to divest non-core assets as it pursues new opportunities." About Cub Energy Inc. Cub Energy is a power and 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 build a portfolio of assets within a high-commodity-price environment. We seek Safe Harbor.
I'm not familiar with KUB but it is a type of company that I actively look for. A lot of people are done with carbon based energy, declaring the era at an end, but it is far from the end. In fact, the idea is ridiculous. Yahoo cites the KUB PE at 1.67. We probably won't be free of fossil fuels in 1.67 years. lol! If only it paid a dividend. Even a tiny dividend.
You never know. Once that second asset sale is completed, KUB will have around $0.04 CAD in cash, double it's current market cap. They could technically pay some sort of dividend. Plus they'll likely have another seven figure profitable quarter because of how crazy nat gas prices are in Europe. Then there's still the Western Ukraine RK field asset that's producing gas, so it's worth more than just cash value.
Not sure if anyone has been paying attention to the European Natural Gas crisis, but prices have hit a level that I always thought was impossible to achieve. January pricing is at $73 an MCF, equivalent to $460 USD a barrel of oil equivalent! https://www.ueex.com.ua/eng/exchange-quotations/natural-gas/medium-and-long-term-market/ We saw the Uzhgorod asset sale close this week, which gives me hope that the subsidiary sale should also close. Reason I believe this will occur is because Burisma is making a fortune right now with their 65% ownership and payback on the acquisition will be quick. Cub Energy made $1.4 million USD in profit last quarter and the average pricing was $7.66 an MCF. The average from October on has been over $20+ an MCF, this can be seen on page 4 of KUB’s December 2021 Company Presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf ▪ Q1-Q3 2021 average sales price of $7.66/Mcf and a corporate netback of $3.82/Mcfe(1) ▪ October/November sale price has been closer to $20.00/Mcf As well, Cub Energy started selling Natural Gas from their RK field rather than electricity because of this. From the financial results press release: • The power business generated 5,546 megawatts an hour from the Jenbacher power units in western Ukraine for the period of commencement in mid-May, 2021, to Sept. 18, 2021, at an average price of $71 per MWh. Due to the recent material increase in natural gas prices and no parallel increase in power prices, the company has increased its sales of natural gas at the RK field and temporarily suspended the power business as of Sept. 18, 2021, as this strategy is more profitable at present. The company will continue to monitor the prices of both commodities and utilize whichever one produces the better return for shareholders.
Took a small position in KUB today. I believe both asset sales will close and the company should double in stock price in less than 1 year. Thanks for keeping this one updated TheDude.
Hey KThanx, welcome aboard! It's been a long haul with KUB, but I do think there's some great value, especially when a 1 cent move at this point is a 50% gain. I do believe the second asset sale will get completed and Q4 results should add at least another $2 million USD in net income. I'm thinking around $0.06c CAD once everything settles, not including any value from the RK field.
Cub Energy Announces Closing of Sale of 35% Interest in KUBGAS Houston, Texas, and Calgary, Alberta – February 2, 2022 – Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB) announces it has closed the sale of its 35% interest in KUBGAS Holdings Limited (“KUB Holdings”). The sale was for a deemed consideration of approximately US $10.9 million. The consideration was comprised of a cash payment of US $2.6 million and the settlement of US $8.3 million in debt. The US $8.3 million in debt was settled in full through the repayment of debt and the simultaneous issuance of US $7.9 million in dividends to the Company with the difference being the applicable withholding taxes. The Company continued gas trading of its 35% interest in KUBGAS through to November 15, 2021. Patrick McGrath, CEO of Cub said: “The sale of the Company’s eastern Ukraine asset essentially derisks the Company’s eastern Ukraine exposure and eliminates the majority of Cub’s debt. The Company is now focused on its 100% owned western Ukraine assets and will continue to review new opportunities.” About Cub Energy Inc. Cub Energy Inc. (TSX-V: KUB) is a power generation and 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 build a portfolio of assets within an advantaged commodity price environment. For further information please contact us or visit our website: www.cubenergyinc.com Patrick McGrath Chief Executive Officer (832) 499-6009 [email protected]
Is it just me, or does this company trade for LESS than cash value + have producing assets in Western Ukraine... The assets held can produce electricity or sell natural gas depending on what prices are more attractive. This should be a triple from here I think.
Yup, you're 100% correct. I've been adding at 2-2.5 because you're paying for half the cash position, not including what their electricity asset (RK field + generators) are worth. I would say full value of KUB right now is 8-10 cents, half of that is cash.
I honestly don't think so, not unless the RK field is attacked or seized. Still crazy to think that KUB trades at half of it's cash value and that money is outside of Ukraine, no risk exposure.
