# KUB.V - Cub Energy Inc.



## EPS_Investor (Sep 7, 2017)

Cub Energy Due Diligence Report (Based on 2018 Year End Results – Released March 2019)

Financials + MD&A – All Information Found On Sedar

Stock Symbols: KUB – Canada & TPNEF - USA

Price: $0.05
Common Shares: 314,215,355
Insider/Institutional Holdings: 172,466,105 or 55% of common shares
Options: 15.3 million
Recent Fact Sheet: http://www.cubenergyinc.com/_resources/factsheet/factsheet.pdf?v=1
Recent Company Presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=1
Financials – All Numbers Are Expressed In US Dollars. 

ASSETS
Cash & Equivalents: $7,236,000
Prepaid Expenses & Inventory: $1,607,000
Trade & Receivables: $771,000
Equity Investments: $7,967,000
Property & Equipment: $3,588,000
Non-Current Receivables: $919,000
TOTAL ASSETS: $22,088,000 (2017 - $19,827,000)

LIABILTIIES
Trade Payables: $5,318,000
Shareholder Loans(Portion): $498,000
Loan from KUB-gas: $3,591,000
Shareholder Loans: $2,000,000
Provisions: $458,000
TOTAL LIABILITIES: $11,865,000 (2017 - $14,036,000)
Asset/Debt Ratio: 1.86

Q1 2019 results will be released end of April. Below are results from 2017 and 2018 sales.

2017 – All USD
Gas Sales: $24,000
Gas Trading: $13,099,000
Royalty Expense: ($7,000)
Income From Equity Investment: $6,767,000
Operating Expenses (Total): $34,218,000 - $16 million one time impairment included
Loss: $14,869,000 – Should have been a profit with one time expense removed

2018 – All USD
Gas Sales: $142,000
Gas Trading: $20,428,000
Royalty Expense: ($38,000)
Income From Equity Investment: $6,121,000
Operating Expenses (Total): $23,573,000
Income Tax Expense: $2,000
Foreign Currency Gain: $52,000
Income: $ 3,130,000

Earnings Per Share In 2018: $3,130,000 USD X 1.3344 CDN (Exchange Rate March 31 2019) = $4,176,672
**Canadian Company, Therefore earnings must be converted to reflect true share value**
$4,176,672 / 314,215,355(common shares) = $0.0133 EPS

MD&A Highlights From 2018 Results

The Company is a publicly-traded, international energy company engaged in exploration and development of onshore oil and gas properties in Ukraine. Key to success in this region is the Company’s strong local relationships, key operating partnerships and a history of management experience operating in-country. 

Current production is driven by a 35% interest in KUB-Gas LLC (“KUB-Gas”) in eastern Ukraine and the Company’s 100% operated interest in western Ukraine in Tysagaz LLC (“Tysagaz”). The Company also holds a 50% interest in CNG Holdings Netherland B.V. (“CNG Holdings”) which in turn owns CNG LLC (“CNG LLC”) to jointly explore a production licence in western Ukraine.

As at December 31, 2018, the Company had an effective 35% ownership interest in KUB-Gas, a Ukrainian company which owns assets representing a substantial portion of the Company’s core operating properties, income and cashflow. The Company also owns 100% ownership of Tysagaz, whose producing assets are in western Ukraine but have been suspended since April 1, 2016 other than minor production from RK-1. In addition, the Company has an effective 50% ownership interest in CNG LLC, a Ukrainian company with a production licence in western Ukraine that has no current production but the Company expects to drill exploratory wells in 2019.

Highlights 
• Kub-Gas successfully recompleted the Olgovskoye-3 (“O-3”) well to a “behind pipe pay” zone designated as the Bashkirian-1b (“B1b”). The well initially tested at higher rates and put into production at a stabilized rate at 1.4 million cubic feet per day (“MMcf/d”) in the fourth quarter of 2018.

• Kub-Gas also recompleted the Olgovskoye-9 (“O-9”) well to the zone designated as the Bashkirian-3 (“B3”). During a standard multi-rate test, the zone was tested up to 2.5 million cubic feet per day (“MMcf/d”) and was put into production at a stable rate of 1.7 MMcf/d during the second half of 2018. 

• The Company reported income from equity investment of $6,121,000 during the year ended December 31, 2018 as compared to income of $6,767,000 in 2017.

• The Company reported net income of $3,078,000 or $0.01 per share during the year ended December 31, 2018 as compared to a net loss of $14,342,000 or $0.05 per share during 2017 when the Company recorded one-time impairment charges. 

• During the year ended December 31, 2018, the Company received $5,676,000 in dividends from KUB Holdings as compared to $4,134,000 in dividends in 2017.

• The Company made a loan repayment of $1,067,000 to KUB-Gas during 2018 in conjunction with its maturity. In addition, the Company received $300,000 from Kub Holdings in conjunction with a longterm loan repayment. 

• Production averaged 836 boe/d (97% weighted to natural gas and the remaining to condensate) for the year ended December 31, 2018 as compared to 977 boe/d for 2017. 

• Netbacks of $29.33/boe or $4.88/Mcfe for the year ended December 31, 2018 as compared to netback of $25.19/Boe or $4.20/Mcfe for 2017. 

• Achieved average natural gas price of $7.94/Mcf and condensate price of $70.47/bbl during the year ended December 31, 2018 as compared to $6.50/Mcf and $69.56/bbl for 2017. 

• On January 1, 2018, the royalties on new wells drilled in Ukraine after January 1, 2018 were reduced to 12% from 29% for a minimum period of five years.

• On March 1, 2018, a new law was passed in Ukraine intended to simplify regulatory procedures for the oil and gas sector which should increase the speed and efficiency of approvals.

• The new Nitrogen Rejection Unit (“NRU”) is nearing completion and is planned to be operational in 2019. However, due to continued construction delays, on November 19, 2018, the Company filed a claim with American Arbitration Association (“AAA”), seeking $300,000 (plus interest and attorney fees) from the NRU manufacturer in contractual delay damages.

• The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Eastern Ukraine KUB-Gas Assets (35%)
Kub-Gas has successfully recompleted the O-3 and O-9 wells in 2018. There are ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Opportunities such as these generate above average returns for shareholders, particularly given the current gas price in Ukraine. The North Yatskivska #3 (“NY-3”) well on the West Olgovskoye (“WO”) licence was drilled to a total depth of 2,300 metres and evaluated several prospective horizons. Test results indicated the well encountered noncommercial gas shows. The well was drilled based on 2D seismic and the Company believes the commencement of a 3D seismic program later this year should improve the probability of success of future exploration wells.
Western Ukraine Tysagaz Assets (100% Interest)
The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the allowable limit stipulated by the gas pipeline operator. While the Company waitsfor the nitrogen rejection unit (“NRU”) that can extract nitrogen from natural gas from the shallower sands, the Company began selling a nominal amount of rich gas from a deep well to evaluate the Mesozoic formation. The Company is purchasing a new NRU to re-commence production on the RK field. The new NRU is being manufactured in the United States. The new NRU is planned to be operational in 2019.
Western Ukraine CNG Assets (50% Interest)
During 2017, CNG LLC completed a 118 square kilometre 3D seismic survey on the Uzhgorod production licence in western Ukraine. The results were interpreted and identified multiple drill targets. The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of the permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Ukraine Gas Prices and Currency
The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.76 UAH/USD at December 31, 2018, which was relatively flat as compared to the 28.1 UAH/USD at December 31, 2017. During the year ended December 31, 2018, gas pricesrealized were $7.94/Mcf which was higher than the 2017 price of $6.50/Mcf. The Company believes gas prices in 2018 were higher than 2017 because of a longer colder winter in Europe this year and lack of inventory. The future of natural gas prices in Ukraine is currently subject to a high degree of uncertainty and it is unknown what the future prices the Company will receive on its Ukraine production.
Outlook


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## EPS_Investor (Sep 7, 2017)

Cub Energy's 2018 2P oil, gas reserves at 1,572 mboe

2019-03-27 07:17 MT - News Release


Mr. Mikhail Afendikov reports

CUB ENERGY INC. REPORTS YEAR-END RESERVES FOR 2018

Cub Energy Inc. has released results of its independent reserves evaluations as of Dec. 31, 2018, on its oil and gas properties in Ukraine. The evaluation of the Tysagaz LLC property (100-per-cent working interest) and KUB-Gas LLC properties (35-per-cent working interest) was conducted by Ryder Scott Petroleum Consultants, an independent qualified reserves evaluator and auditor.

All evaluations were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation (COGE) Handbook and are in accordance with Canadian Securities Administrators' National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. Cub's NI 51-101 disclosure is contained in its annual information form for the year ended Dec. 31, 2018, filed on SEDAR and posted on the company's website. Highlights of the net reserves are as follows (2):

Proved developed producing (PDP) oil and natural gas net reserves of 287,000 barrels of oil equivalent, or 1,723 million cubic feet of gas equivalent with net present value at 10-per-cent discount before tax (NPV-10) of $9.5-million (U.S.) (four cents per share) (1);
Proved (1P) oil and natural gas net reserves of 988,000 barrels of oil equivalent or 5,930 million cubic feet of gas equivalent with NPV-10 of $19.47-million (U.S.) (eight cents per share) (1);
Proved and probable (2P) oil and natural gas net reserves of 1,572,000 barrels of oil equivalent or 9,431 million cubic feet of gas equivalent with NPV-10 of $30.39-million (U.S.) (13 cents per share) (1).
Notes:

(1) The per-share amounts are calculated by dividing the respective NPV-10 before tax numbers by the number of common shares issued and outstanding shares, being 314,215,355.

(2) Reserves net to the company's interest after deduction of royalties.

Total company reserves summary

The attached tables summarize the total company reserves and associated net present values discounted at 10 per cent before tax at Dec. 31, 2018, using forecast prices.

TOTAL COMPANY NET RESERVES VOLUMES (1)

Reserves category Natural gas NGLs Mboe Mmcfe
(mmcf) (mbbl) 

Developed producing 1,681 7 287 1,723
Developed non-produced 1,895 3 319 1,913
Undeveloped 2,295 - 382 2,295
Total proved (1P) 5,870 10 988 5,930
Total proved plus 
probable (2P) 9,311 20 1,572 9,431

Note:
(1) Reserves net to the company's interest after deduction of royalties.
NET PRESENT VALUE AT 10-PER-CENT DISCOUNT 
BEFORE TAX (NPV-10) (1) (2) (3)

Reserves category NPV-10 
(US$ millions) 

Proved developed producing (PDP) $9.50 
Total proved (1P) $19.47 
Total proved plus probable (2P) $30.39

Notes: 
(1) The forecast prices used in the calculations of 
the present value of future net revenue for year-end 
2018 are based on the reserves reports of eastern 
Ukraine and western Ukraine asset forecast prices.
(2) Estimated values do not represent fair market 
value.
(3) The total proved NPV-10 value of the estimated 
future net revenues are not intended to represent 
the current market value of the estimated oil and 
natural gas reserves. NPV-10 of probable reserves 
represents the present value of estimated future 
revenues to be generated from the production of 
probable reserves, calculated net of estimated 
lease operating expenses, production taxes and 
future development costs, using costs as of the date 
of estimation and using estimated future gas prices,
without giving effect to non-property-related 
expenses such as general and administrative expenses, 
debt service, depreciation, depletion, and 
amortization, or future income taxes, and discounted 
using an annual discount rate of 10 per cent. With 
respect to pretax NPV-10 amounts for probable 
reserves, they do not purport to present the fair 
value of the company's probable reserves.
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.


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## EPS_Investor (Sep 7, 2017)

Cub Energy earns $3.07-million (U.S.) in 2018

2019-03-27 07:21 MT - News Release


Mr. Mikhail Afendikov reports

CUB ENERGY ANNOUNCES NET EARNINGS OF US $3.1 MILLION OR US $0.01 PER SHARE FOR FISCAL 2018

Cub Energy Inc. has released its audited financial and operating results for the year ended Dec. 31, 2018. All dollar amounts are expressed in United States dollars unless otherwise noted. This update includes results from KUB-Gas LLC, of which Cub has a 35-per-cent equity ownership interest, Tysagaz LLC, Cub's 100-per-cent-owned subsidiary, and CNG LLC, of which Cub has a 50-per-cent equity ownership interest.

Mikhail Afendikov, chairman and chief executive officer of Cub, said: "We wish to report net income $3.1-million or one cent per share during the year ended Dec. 31, 2018, and receipt of $5.7-million in dividends from its eastern Ukraine investment. Kub-Gas maintained deliverability over 14 million cubic feet per day by successfully recompleting two wells in the Olgovskoye licence during 2018 and Kub-Gas is continuing other recompletions in 2019. In western Ukraine, Cub and its partner plan to drill our first three wells on the jointly owned Uzhgorod licence in 2019, which costs are expected to be incurred 100 per cent by our partner."

Operational highlights:

In the fourth quarter of 2018, Kub-Gas successfully recompleted the Olgovskoye-3 well to a "behind pipe pay" zone designated as the Bashkirian-1b (B1b). The well initially tested at higher rates and put into production at a stabilized rate of 1.4 million cubic feet per day (MMcf/d).
This followed the other successful recompletion, the Olgovskoye-9 (O-9) well to the zone designated as the Bashkirian-3 (B3). During a standard multirate test, the zone was tested up to 2.5 million cubic feet per day and was put into production at a stable rate of 1.7 MMcf/d.
The price of natural gas averaged $7.94 per thousand cubic feet (Mcf) and condensate price of $70.47/barrel during the year ended Dec. 31, 2018, as compared with $6.50/Mcf and $69.56/bbl for 2017.
Production averaged 836 barrels of oil equivalent per day (boe/d) (97 per cent weighted to natural gas and the remaining to condensate) for the year ended Dec. 31, 2018, as compared with 977 boe/d for 2017.
On Jan. 1, 2018, royalties on new wells drilled in Ukraine after Jan. 1, 2018, were reduced to 12 per cent from 29 per cent for a minimum period of five years.
On March 1, 2018, a new law was passed in Ukraine intended to simplify regulatory procedures for the oil and gas sector, which should increase the speed and efficiency of approvals.
The new nitrogen rejection unit (NRU) is planned to be operational in 2019. However, due to continued construction delays, on Nov. 19, 2018, the company filed a claim with American Arbitration Association, seeking $300,000 (plus interest and attorney fees) from the NRU manufacturer in contractual delay damages.
The company and its partner plan to start a three-well exploration program at Uzhgorod in mid-2019. The well costs are expected to be incurred 100 per cent by the company's partner.
Financial highlights:

The company reported net income of $3.1-million during the year ended Dec. 31, 2018, as compared with a net loss of $14.3-million in 2017 when the company recorded one-time impairment charges.
Netbacks of $29.33/boe or $4.88/Mcfe for the year ended Dec. 31, 2018, as compared with netback of $25.19/boe or $4.20/Mcfe for 2017.
During the year ended Dec. 31, 2018, the company received $5.7-million in dividends from KUB Holdings as compared with $4.1-million in dividends in 2017.
The company repaid $1.1-million of its loan to KUB-Gas during the year ended Dec. 31, 2018, in conjunction with its maturity.
(in thousands of U.S. dollars)

Three months ended, Year ended,
Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017

Petroleum and natural gas revenue 74 - 142 24
Pro rata petroleum and natural gas revenue (1) 4,385 3,609 14,864 14,285
Revenue from gas trading (2) 6,831 3,957 20,428 13,099
Net income (loss) 570 (15,290) 3,078 (14,342)
Income per share -- basic and diluted 0.00 (0.05) 0.01 (0.05)
Funds generated from operations (3) 2,353 2,832 2,690 2,519
Capital expenditures (5) 2 637 221 1,678
Pro rata capital expenditures (5) 222 596 1,682 4,320
Pro rata netback ($/boe) 35.28 27.29 29.33 25.19
Pro rata netback ($Mcfe) 5.88 4.55 4.88 4.20

Dec. 31, 2018 Dec. 31, 2017

Working capital (deficit) 3,798 (478)
Cash and cash equivalents 7,236 6,190
Long-term debt 5,591 5,451

Notes: 
(1) Pro rata petroleum and natural gas revenue is a non-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 equity 
share of the KUB-Gas natural gas sales that the company has an economic interest in.
(2) During the three months and year ended Dec. 31, 2018, the company recorded $6,831,000 (2017 -- $3,957,000) and 
$20,428,000 (2017 -- $13,099,000) in revenue for gas trading and $6,276,000 (2017 -- $3,767,000) and $19.15-million 
(2017 -- $12,767,000) for the cost of the sales for a net profit from gas trading of $555,000 (2017 -- $56,000) and 
$1,278,000 (2017 -- $233,000), respectively.
(3) Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes
in non-cash working capital.
(4) 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 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.
(5) 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 add the company's capital expenditures in 
the respective periods to the company's 35-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 is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is under way at the time of this report with another three in the permitting phase. Kub-Gas may drill one additional well in 2019 and kick off a 3-D seismic program on the WO licence to delineate known structures found from 2-D seismic.

In western Ukraine, the company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The company and its partner plan to start a three-well exploration program in the Uzhgorod licence in mid-2019 on structures defined by 3-D seismic. The well costs are expected to be incurred 100 per cent by the company's partner.

Supporting documents

Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated management's discussion and analysis, has 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. 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.


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## EPS_Investor (Sep 7, 2017)

December 18th 2018 interview article regarding Cub Energy's joint venture partner who will be drilling 3 wells in 2019 at no cost to KUB.V. This is a multi billion dollar company

December 18th 2018 - Nafta plans to invest almost $ 200 million in natural gas production in Ukraine

https://ukranews.com/news/603158-ko...-dollarov-v-dobychu-pryrodnogo-gaza-v-ukrayne

Large multinational companies are planning to invest hundreds of millions of euros in the modernization and development of oil and gas fields in Ukraine. And the first for many years a serious foreign investor who enters the domestic market of hydrocarbons is the Slovak company Nafta. This was announced today at a press conference of the management of this company.
"The EPH industrial and energy holding has been operating in Ukraine for the first year. We have studied almost the entire territory of the country and concluded that in the next 5 years we will be able to effectively invest $ 200 million in Ukrainian gas fields. Directly organizing and carrying out gas exploration and production Our subsidiary Slovak company Nafta, which has been successfully operating in the western region of the country for 5 years, will be engaged in, "said Robert Bundil, project manager for EPH holding, to journalists.

According to R. Bundila, this is a guaranteed investment in the development of the Yuzovskoye field. The businessman recalled that today, in the first half of the day, the Cabinet of Ministers at its meeting approved the transfer of 90% of the rights and obligations of Nadra Yuzovskaya LLC in the Production Sharing Agreement (PSA) on Yuzovskaya Square (Kharkiv and Donetsk region) to Yuzgaz BV (Netherlands) with the investor-operator of the project represented by the Slovak company Nafta. According to the explanatory note to the draft government order, Nafta provided a guarantee of 100% collateral for Yuzgaz’s obligations, which would cover $ 200 million in search funding (drilling at least 15 wells).

In turn, Lubomir Kopchik (Nafta RV), director of the Nafta representative office in Ukraine, stressed that in his work on hydrocarbon production, the company will not only explore new sites, but also reconstruct and renew old wells, which number 47 facilities. At the same time, advanced world technologies will be used, with which the Ukrainian specialists will mainly work.

“We definitely count on attracting both local specialists and Ukrainian companies to work. This is about creating hundreds of new jobs. And at least 80% of local specialists will work in our facilities. As a result: filling local budgets through taxation” - noted L. Kopchik.

In turn, the Ambassador Extraordinary and Plenipotentiary of the Czech Republic to Ukraine, Radek Matula, noted that entering the Ukrainian investment market of such a serious representative of Central European business, like the ERN holding and its subsidiary Nafta, is an excellent example for other potential investors.

“For more than four years we have been supporting the Ukrainian government’s policy of increasing its own gas production. In the situation in which your country is today, the arrival of serious European capital will only contribute to the growth of Ukraine’s energy independence,” Radek Matula summed up.

As the Deputy Minister of Energy and Coal Industry Natalia Boyko noted on her Facebook page, an important step was taken in the direction of energy independence at the Government meeting today! A step towards new investments. Approved competitive conditions for 12 new projects on the conclusion of agreements on production sharing. Ukraine expects to attract more than 50 billion UAH to hydrocarbon production as a result of the conclusion of future agreements.

"Competitions will be held with maximum transparency. To increase transparency, a provision has been included that obliges applicants to disclose not only information about their participants, but also actual final beneficiaries ... Competitive conditions provide for a minimum investment, list and term of work at the site, main criteria for product distribution and the specifics of the terms of the agreement on the part of the state ", - said N. Boyko.

The official emphasized that in this way, in 2019, the state would offer investors at auctions and tenders over 40 oil and gas areas with a total area of ​​over 20 thousand sq. Km.

Reference:

Oil and gas company Nafta is a leader in the field of hydrocarbon research and production in Slovakia with more than 100 years of experience. The company is engaged in the search and production of gas and oil, applies leading modern technologies in its work. During its existence, Nafta has drilled more than 3 thousand wells in the Vienna and East Slovak basins. The company has a storage capacity of 2.74 billion cubic meters. m of natural gas.

Since 2016, Nafta has been implementing a joint project with the American company Cub Energy Inc. in Ukraine. gas prospecting and production in the Transcarpathian region. In two years, Nafta carried out seismic surveys and this year began drilling three exploratory wells.

The management of the Slovak Nafta, of which 29% is owned by the state, is carried out by the infrastructure division of EPIF, which is 68% owned by the EPH Central European Energy Holding.


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## EPS_Investor (Sep 7, 2017)

Another article done on January 15th 2019 regarding once again Cub Energy's JV Partner. Both the December and January articles mention Cub Energy Inc, which verifies that this is the actual partner.

https://venergetike.sk/nafta-investovala-do-spolahlivej-a-bezpecnej-prevadzky/

January 15, 2019 10:35 Gas News from vEnergetike.sk vEnergetike.sk/NAFTA 

NAFTA has invested in reliable and safe operation
The operator of underground gas storage facilities was also active in the west of Ukraine.

Last year, NAFTA's investments were mainly directed to reliable and safe operation. “In operating operations, we focus on increasing operational safety, which is extremely important for NAFTA. Investments are geared towards security, increased automation, and the use of a wealth of collected information to further optimize processes. We are constantly working on improving the safety of our facilities, protecting the health of our employees, suppliers and people living in the vicinity of our operations and protecting the environment, ”said NAFTA spokeswoman Martina Štecová.

Last year, the company continued its projects on foreign markets. "In this context, we have expressed an interest in taking over the underground storage facilities of Inzenham, Wolfersberg and Breitbrunn in Bavaria, Germany, and we have signed a sales agreement with DEA ​​Deutsche Erdoel AG in early 2018," Štecová added.

The operator of underground gas storage facilities was also active in the west of Ukraine. “As part of our international activities, we have been developing exploration activities in Uzhgorod, where NAFTA is actively working with Cub Energy Inc. In 2017, 3D seismic measurements were made on 118 square kilometers. Last year, the entry and clearance of land for drilling areas and access roads was provided; legislative permits and preparation for the implementation of exploration wells scheduled for this year. In this area we see a similar geological trend as in Slovakia, which gives us the opportunity to fully exploit our long-term knowledge and experience in the exploration and production of hydrocarbons, ”added Štecová.

NAFTA also continued its exploration project around Trnava with a company from Vermillion Energy Inc. In 2017, a 3D seismic measurement was carried out on an area of ​​approximately 250 square kilometers, which is the largest 3D seismic project implemented in Slovakia. “Last year, the 2017 3D seismic data were interpreted and the brochures were identified. We are currently preparing drilling projects, ”said Štecová.

In order to increase efficiency, NAFTA has concluded a cooperation agreement with OMV Austria Exploration & Production GmbH. “The subject of the contract was mutual support in the event of an emergency in the future. In removing the emergency situation, both companies are ready to help each other by earmarking their technology or human resources, ”said Štecová.

In addition to the aforementioned cooperation, NAFTA joined the hydrogen initiative last year to maximize the potential of hydrogen produced from renewable sources. “Hydrogen as an energy carrier has the potential to cover the unevenness of electricity generation from renewable sources, while its storage will bring flexibility just for renewable electricity sources. The potential of "renewable" hydrogen is not only in its ability to tackle energy storage, but renewable hydrogen is considered a sustainable climate energy carrier that can be used in various fields - transport, energy, industry and so on. It is for these reasons that renewable hydrogen is expected to become a key instrument for the global decarbonisation of the environment in the coming years, ”Štecová concluded.


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## OnlyMyOpinion (Sep 1, 2013)

That's a lot of electrons you used EPS. 
Just wonderimg why you don't summarize, add some of your own commentary and provide a link or two for all of the gory detail?


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## EPS_Investor (Sep 7, 2017)

Sorry OnlyMyOpinion, I know I could of done one large post, but then it gets convoluted. Wanted to break it up bit by bit and include as much information as possible. The news articles are all translated from European sources and the DD I put a little of my own commentary. But people would rather compare Sedar notes than hear what I have to say. I present an idea and if someone likes it, they can go verify/disprove what I posted and it's easier that way. I also got in trouble on here once for posting too many links, so I try to break it up per post.

Forgot to mention that I spoke to management with regards to their proxy as it stated a rollback could occur if a special deal is made for an asset and given that the company did several share for asset deals in the past (well above 10 cents) then that's when it would happen, otherwise it's been on the proxy for several years and just rolls forward unless it gets voted down.

to amend the Articles of the Corporation to consolidate the issued and outstanding common shares in a range
of one common share for up to every 10 of the issued and outstanding common shares that the board of
directors, in its sole discretion, determines to be appropriate;


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## OnlyMyOpinion (Sep 1, 2013)

Thanks EPS.
IMO it takes someone who is hands-on like you, or is on the inside, to do well on jr cos like cub.
With neither, I'd just never be able to put enough in to make a material difference even if I did do well.


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## EPS_Investor (Sep 7, 2017)

No problem. Small caps do require more work, but if de-risked to a 90%+ success factor (100% doesn't exist but you can get to 99%) through multiple factors that can increase share value and you can verify this through Sedar, calling management, etc, then it's totally worth doing. I share because I'm always hoping there are other individuals that also do similar research and we can compare notes publicly. 

Hard to make 50%+ ROI in 12-18 months on a medium or large cap these days, but a good small cap with earnings and makes money, it's very doable. But of course those take time to find and KUB I found after reading through over 200 small caps over the last few weeks. I use Stockwatch and there's a way to filter it so you can get financial reports that go back to back and you can fire through several, plus MD&A's in less than 20 minutes. 

I learned the hard way many years ago just buying into small cap spec without research was a [email protected] shoot and you were hoping 1 in 10 would take off, long past those days.


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## EPS_Investor (Sep 7, 2017)

Below is the website for NAFTA Gas, the JV partner who will be drilling 3 major wells this summer and KUB owns 50% of the lease and isn't paying a penny to drill those wells. As you will see on the Nafta website, this is a serious company with plans to expand across Europe. They have been waiting since 2016 to drill these wells and now the time has come to get the project started. Keeping in mind they sepent some serious money doing seismic and understand the geology perfectly since the same reservoir on the Slovakia side is owned by them. Compare the Nafta map to page 9 of the Kub presentation and you'll see how close their facility is to our lease.

https://www.nafta.sk/en/development-projects

http://www.cubenergyinc.com/_resources/corporate-presentation.pdf


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## EPS_Investor (Sep 7, 2017)

April 30th 2019 - Interview with Analyst on Cub Energy Inc. (KUB - Canada & TPNEF - USA)

https://www.voiceamerica.com/episode/114771/how-can-we-thrive-against-zirp-and-nirp

20:30 - 22:30

- Profitable

- Paying down debt

- Organic production growth, easily double that

- 3 wells this summer from JV partner. "Low hanging fruit"


This analyst is serious about KUB, he went to the Ukraine and to the Houston office:

http://chenpicks.com/chenvisit.html

Ukraine 2016 - http://chenpicks.com/chenvisitukraine.html

Houston 2018 - http://chenpicks.com/chenvisitcubenergyhouston.html


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## EPS_Investor (Sep 7, 2017)

From The March 2019 Company presentation, KUB has 6 projects on the go. If all work out as planned, the upside is tremendous here. See info below:

http://www.cubenergyinc.com/_resources/corporate-presentation.pdf

Uzhgorod Licence –Western Ukraine
U Field: Asset Overview
W.I. 50% owned by Cub
Operator Joint
Contract 20 year special production permit (expires 2036)
Status No current production
Area 75,000 acres
Highlights
▪ The Company partnered with a Slovakian based company with
extensive experience in E&P
▪ The partnership included a sale of 50% ownership in Uzhgorod.
Pursuant to the agreement, the partner is to:
– Pay Cub €1.5 million (paid)
– Fund a 100 square kilometer 3D seismic survey (completed)
– Fund the drilling and tie-in of the first three wells (2019)
▪ The licence is on the border with Slovakia, Hungary and Romania.
Adjoining producing or past producing fields
Work Plan
▪ Plan is to drill up to three exploratory wells in mid 2019

O Field – Eastern Ukraine
O Field: Asset Overview
W.I. 35% owned by Cub
Operator KUB-Gas
Contract 20 year special production permit (expires 2032)
Status Producing
Area 22,000 acres gross
Highlights
▪ Recompleted the O-9 well in Q2 2018 and put into production at a
stable rate of 1.7 MMcf/d since June.
▪ Recompleted the O-3 well in Q4 2018 and put into production at a
stable rate of 1.4 MMcf/d since October.
▪ Multiple other recompletion opportunities exist.
▪ 100% success rate on five O wells prior to 2107
– All five wells tied in for commercial production
▪ Successful fracture stimulations performed in prior years
Work Plan
▪ 2019 work plan will include several recompletion candidates.

M Field – Eastern Ukraine
M Field: Asset Overview
W.I. 35% owned by Cub
Operator KUB-Gas
Contract 20 year special production permit (expires 2032)
Status Producing
Area 18,000 acres gross
Highlights
▪ Upgraded processing facility brought on line and boosts throughput
capacity
Work Plan
▪ 2019 work plan will include several recompletion candidates

West O Field – Eastern Ukraine
WO Field: Asset Overview
W.I. 35% owned by Cub
Operator KUB-Gas
Contract 20 year special production permit (expires 2035)
Status No current production
Area 111,000 acres gross
Highlights
▪ The licence immediately offsets the O and NM licences
▪ It surrounds (but does not include) the existing Druzhelyubovskoe gas/condensate field,
which has produced gas from the same zones that produce in the O and M fields.
▪ Completed 26 km of 2D seismic in 2016; Completed150 km 2D seismic survey in 2017.
Interpreting results to identify drill targets.
Work Plan
▪ 2019 work plan to include 3D seismic survey to evaluate new drill targets

RK Field –Western Ukraine
RK Field: Asset Overview
W.I. 100% owned by Cub
Operator Cub
Contract 20 year special production permit (expires 2030)
Status Producing nominal amounts
Area 2,000 acres 
Highlights
▪ Ordered a new Nitrogen Rejection Unit
▪ Goal of resuming material production in 2019
▪ During 2018, the Company began selling a nominal amount of rich
gas from a deep well to evaluate the Mesozoic formation
▪ Adjacent to producing fields in Hungary, Romania and Slovakia

Stanivske Licence –Western Ukraine
S Field: Asset Overview
W.I. 100% owned by Cub
Operator Cub
Contract 20 year special production permit (expires 2036)
Status No current production
Area 31,000 acres
Highlights
▪ Recently granted 20 year production licence
▪ A 45 square kilometer 3D seismic survey was acquired by the
company in 2013
▪ Gas was discovered on the field in 1990 by a prior operator
Work Plan
▪ The company is currently evaluating its 2019 work program


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## EPS_Investor (Sep 7, 2017)

That's a chart comparing 10 years of performance for the company(since inception) - Revenue, Profit/Loss, Assets, Liabilities, etc.

Then another thing important to note is what shares were raised at. For those that have access to the market depth, you will see that after 10 cents, the asks jump to 20 cents. This is because We are trading at a huge discount compared to where a vast majority of shares were purchased at:

Private Placement Dates & Amounts (Does Not Include Shares From Finder Fee's Or Options/Warrants Execised) 
May 12th 2010 - 4,186,664 shares raised at $0.15 for $628,000 
July 21 2010 - KUB.V Acquired Galizien Energy Corp For 4,400,000 shares 
September 28 2010 - 20,035,000 shares raised at $0.25 for $5 million 
October 26th 2010 - 20,000,000 shares raised at $0.40 for $8 million 
November 25th 2011 - 17,500,000 shares raised at $0.40 for $7 million 
March 29 2012 - KUB.V Acquired Gastek for 123,278,089 shares 
December 17 2012 - 31,250,000 shares raised at $0.40 for $12.5 million 
April 26 2013 - KUB.V Acquired Anatolia Energy For 13,900,000 shares


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## EPS_Investor (Sep 7, 2017)

KUB financials out next Wednesday, can't wait! I forgot to mention that KUB did put a new well into production in Q4 which was averaging around 1.4mmcf or roughly 220boed. But this is one of several wells they are re-completing and with Russia threatening to cut gas supplies to Ukraine, prices will remain high and probably go up in 2019. If it does happen, we could see over $10 an mcf in Ukraine, KUB will be a money machine.

https://www.themoscowtimes.com/2019...nter-as-russia-prepares-to-cut-off-gas-a65496

Cub Energy recompletes Olgovskoye-3 well in Ukraine

2018-11-20 07:52 MT - News Release


Mr. Mikhail Afendikov reports

CUB ENERGY INC. ANNOUNCES THE SUCCESSFUL RECOMPLETION OF THE O-3 WELL IN EASTERN UKRAINE

Cub Energy Inc.'s KUB-Gas LLC, owner and operator of the eastern Ukraine licences, has released results of its recent recompletion of the Olgovskoye-3 well.

Kub-Gas utilized its own workover rig and crew to recomplete a productive gas sand interval designated as the Bashkirian-1b. The well has stabilized at a rate of 1.4 million cubic feet per day since October, 2018.

Mikhail Afendikov, chairman and chief executive officer of Cub Energy, commented: "The successful O-3 recompletion, coupled with the recent success of the O-9 recompletion in the second quarter of 2018, has increased the total field production by almost 20 per cent. Given the recent successes of the recompletions, their relatively low cost and the high gas price environment in Ukraine at present, Kub-Gas's priority is to focus on additional recompletion candidates, of which at least 10 wells have been identified."

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.


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## EPS_Investor (Sep 7, 2017)

Cub Energy Inc. Q1 2019 Results. Financials + MD&A – All Information Found On Sedar

Stock Symbols: KUB – Canada & TPNEF – USA

Price: $0.06
Common Shares: 314,215,355
Insider/Institutional Holdings: 172,466,105 or 55% of common shares
Options: 15.3 million
2019 Company Pres: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=1
2019 Fact Sheet: http://www.cubenergyinc.com/_resources/factsheet/factsheet.pdf?v=1

Financials – All Numbers Are Expressed In US Dollars. Ending March 31st 2019

ASSETS
Cash: $6,958,000
Dividend Receivable: $1,684,000
Prepaid Expenses: $702,000
Trade & Other Receivables: $644,000
Equity Investments: $8,049,000
Property & Equipment: $3,749,000
Non-Current Receivables: 587,000
Total Assets: $22,373,000

LIABILITIES
Trade & Other Payables: $4,382,000
Loan From KUB-Gas(100% Owned Subsidiary): $ 5,229,000
Shareholder Loan(current portion): $250,000
Shareholder Loans (total): $2,000,000
Provisions: $484,000
Total Liabilities: $12,345,000

Asset/Debt Ratio: 1.81

2017-2019 Performance

2017 – All USD
Gas Sales: $24,000
Gas Trading: $13,099,000
Royalty Expense: ($7,000)
Income From Equity Investment: $6,767,000
Operating Expenses (Total): $34,218,000 - $16 million one time impairment included
Loss: $14,869,000 – Should have been a profit with one time expense removed

2018 – All USD
Gas Sales: $142,000
Gas Trading: $20,428,000
Royalty Expense: ($38,000)
Income From Equity Investment: $6,121,000
Operating Expenses (Total): $23,573,000
Income Tax Expense: $2,000
Foreign Currency Gain: $52,000
Income: $ 3,130,000

2019 Q1 – All USD
Gas Sales: $49,000
Gas Trading: $4,479,000
Royalty Expense: ($14,000)
Income From Equity Investment: $1,522,000
Operating Expenses (Total): $5,074,000
Net Income: $962,000
Foreign Currency Gain: $437,000
Income: $1,399,000

2019 Earnings: $1,399,000 X 1.30(CDN Exchange) / 314,215,355 = $0.00578 or $0.006 cents earnings
*Must convert USD to CDN to get real stock value of KUB.V(Canadian listed)

Management Discussion Highlights

Highlights
The Company reported income from equity investment of $1,522,000 during the three months ended March 31, 2019 as compared to income of $1,706,000 in the comparative 2018 quarter.
The Company reported net income of $962,000 or $0.00 per share during the three months March 31, 2019 as compared to net income of $779,000 or $0.00 per share during the same period in 2018.
The Company recorded $1,684,000 in dividends during the three months March 31, 2019 compared with $1,054,000 in dividends in the first quarter of 2018.
Production averaged 895 boe/d (97% weighted to natural gas and the remaining to condensate) for the three months March 31, 2019 as compared to 837 boe/d for the 2018 first quarter.
Netbacks of $24.49/boe or $4.08/Mcfe were achieved for the three months March 31, 2019 as compared to netback of $25.93/Boe or $4.32/Mcfe for the comparative 2018 period.
Achieved average natural gas price of $7.11/Mcf and condensate price of $42.57/bbl during the three months March 31, 2019 as compared to $7.16/Mcf and $60.60/bbl for the first quarter of 2018.
Kub-Gas recompleted the Olgovskoye-7 (“O-7”) well during 2019 and it is currently being tested.

The Company and its partner plan to drill a three-well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions. To date, the long-lead items for drilling have been delivered and road construction to the drill pads has commenced. The cost of for the first three wells are financed 100% by our partner.
Eastern Ukraine KUB-Gas Assets (35%)

Kub-Gas recompleted the O-7 well in 2019 and is awaiting testing. There are approximately ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Opportunities such as these generate above average returns for shareholders, particularly given the current gas price in Ukraine. Kub-Gas is also contemplating drilling a new well on the Makeevskoye Licence later in 2019. The Company expects to commence a 3D seismic program later this year should improve the probability of success of future exploration wells.

Western Ukraine Tysagaz Assets (100% Interest)

The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the allowable limit stipulated by the gas pipeline operator. The Company is currently selling a modest amount of rich gas from a deep well to evaluate the Mesozoic formation on the RK field. Subsequent to the three months ended March 31, 2019, due to continued delays in the completion of the NRU, the Company and the NRU manufacturer entered into a mutual release agreement, including the release of the arbitration claim, in exchange for the Company taking physical possession of the NRU “as is”. The NRU has been relocated to another manufacturer in the Houston, Texas area and will undergo an evaluation and testing during the summer of 2019 to determine what is required to complete the NRU.

Western Ukraine CNG Assets (50% Interest)

The Company and its partner plan to drill a three-well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions. To date, the long-lead items for drilling have been delivered and road construction to the drill pads has commenced. The cost of for the first three wells are financed 100% by our partner.

Ukraine Gas Prices and Currency

The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.25 UAH/USD at March 31, 2019, which was relatively flat as compared to the 27.76 UAH/USD at December 31, 2018. During the three months ended March 31, 2019, gas prices realized were $7.11/Mcf which was relatively flat compared to the comparative 2018 price of $7.16/Mcf. The future of natural gas prices in Ukraine is currently subject to a high degree of uncertainty and it is unknown what the future prices the Company will receive on its Ukraine production.

Commencing August 2016, the Company’s wholly owned subsidiary, Tysagaz, began taking possession of its 35% 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. The Company agreed to this arrangement so it could attempt to earn additional net income on the gas sales price sold to majority shareholder’s affiliate. There were impairment charges that impacted net losses in 2017. During the quarter ended December 31, 2017, the Company recorded impairment charges due to the carrying value of its petroleum and natural gas assets exceeding the net present value of expected future cash flows using a discount rate of 26%. The high discount rate relates to the local discount rate in Ukraine and related country risk at that time. During the fourth quarter of 2017, the Company took a $5,300,000 impairment charge relating to the RK field and an impairment on its equity investment in Kub Holdings of $10,700,000.

Revenue from Gas Sales, Net of Royalty

The Company began selling a modest amount of rich gas from the RK field in western Ukraine from a deep well (RK-1) in the Mesozoic formation resulting in revenue during the three months ended March 31, 2019 of $49,000 as compared to $nil in the comparative 2018 period.

Revenue from Gas Trading, Net of Cost of Sales for Gas Trading

Commencing August 2016, the Company’s wholly owned subsidiary, Tysagaz, began taking possession of some of its 35% 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. The Company agreed to this arrangement so it could attempt to earn additional net income from the gas sales price sold to the majority owner’s affiliate. During the three months ended March 31, 2019, the Company recorded $4,479,000 in gas trading revenue and $4,240,000 for the cost of the gas trading for a net profit of $239,000 as compared to $5,670,000 in gas sales and $5,516,000 for the cost of the sales for a net profit from gas trading of $154,000 during the comparative 2018 quarter.

Income from Equity Investments

The Company accounts for its 35% indirect ownership in KUB Holdings and 50% ownership of CNG Holdings as investments under the equity method. During the three months ended March 31, 2019, KUB-Gas generated gross revenues of approximately $9,724,000 (2018 - $9,791,000) and had net income of $4,349,000 (2018 – $4,872,000). This resulted in a net income to the Company from its equity investment for the quarterly period of $1,522,000 (2018 – $1,706,000). The net income at CNG Holdings was $30,000 (2018 – $8,000) during the three months ended March 31, 2019. Net income in both periods primarily related to finance income, net of finance expense, on intercompany loans and the effects of foreign exchange to funds the exploration activities in Ukraine. The Company only records income/losses in its consolidated financial statements from its equity investment in CNG Holdings to the extent of interest in the equity investment which amounted to nil as at March 31, 2019 and December 31, 2018.

Outlook

In eastern Ukraine, Kub-Gas is focused on additional recompletion operations given the success of the O-3 and O-9 recompletions in 2018. The O-7 recompletion was performed in 2019 and is awaiting testing. Three other recompletion opportunities are in the permitting phase. Kub-Gas may drill one additional well in late 2019 on the Makeevskoye Licence and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic.

In western Ukraine, the Company and its partner plan to start a three well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The three-well program is to be financed 100% by our partner


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## EPS_Investor (Sep 7, 2017)

HOUSTON, TX / ACCESSWIRE / May 15, 2019 / Cub Energy Inc. ("Cub" or the "Company") (TSX-V: KUB), a Ukraine-focused upstream oil and gas company, announced today its unaudited interim financial and operating results for the three months ended March 31, 2019. 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.

Mikhail Afendikov, Chairman and CEO of Cub said: "We wish to report net income $1.0 million during the three months ended March 31, 2019 and recorded $1.7 million in dividends from its eastern Ukraine investment. Kub-Gas successfully maintained deliverability of over 14 million cubic feet per day during the first quarter of 2019. In western Ukraine, preparatory works are underway for the first three wells on the jointly owned Uzhgorod license, expected to be drilled this year. All three wells are to be financed 100% by our partner. "

Financial Highlights

The Company reported net income of $1.0 million or $0.00 per share during the three months March 31, 2019 as compared to net income of $0.8 million or $0.00 per share during the same period in 2018.

Netbacks of $24.49/boe or $4.08/Mcfe were achieved for the three months March 31, 2019 as compared to netback of $25.93/Boe or $4.32/Mcfe for the comparative 2018 period.

The Company recorded $1.7 million in dividends during the three months March 31, 2019 compared with $1.0 million in dividends in the first quarter of 2018.

Operational Highlights

Kub-Gas recompleted the Olgovskoye-7 ("O-7") well during 2019 and it is currently being tested.

Achieved average natural gas price of $7.11/Mcf and condensate price of $42.57/bbl during the three months March 31, 2019 as compared to $7.16/Mcf and $60.60/bbl for the first quarter of 2018.

Production averaged 895 boe/d (97% weighted to natural gas and the remaining to condensate) for the three months March 31, 2019 as compared to 837 boe/d for the 2018 first quarter.

The Company and its partner plan to drill a three-well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions. To date, the long-lead items for drilling have been delivered and road construction to the drill pads has commenced. The costs for the first three wells are financed 100% by our partner.

In eastern Ukraine, Kub-Gas is focused on additional recompletion operations given the success of the O-3 and O-9 recompletions in 2018. The O-7 recompletion was performed in 2019 and is awaiting testing. Three other recompletion opportunities are in the permitting phase. Kub-Gas may drill one additional well in late 2019 on the Makeevskoye Licence and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic.

In western Ukraine, the Company and its partner plan to start a three-well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The three-well program is to be financed 100% by our partner.

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.

For further information please contact us or visit our website: www.cubenergyinc.com

Mikhail Afendikov
Chairman and Chief Executive Officer
(713) 677-0439
[email protected]

Patrick McGrath
Chief Financial Officer
(713) 577-1948
[email protected]


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## EPS_Investor (Sep 7, 2017)

May 2019 - Update Company Presentation & Fact Sheet

Fact Sheet: http://www.cubenergyinc.com/_resources/factsheet/factsheet.pdf?v=2

Company Presentation: http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=2


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## EPS_Investor (Sep 7, 2017)

Multi year high hit today. Still trades a ridiculously low multiple just on earnings, nevermind the upside potential on the several ongoing projects.


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## EPS_Investor (Sep 7, 2017)

I was referred to some interesting notes regarding KUB and I missed this because it was in the financials as a note and not the MD&A. Keep in mind that Cub Energy Inc holds 35% of KUB Holdings and increasing that to 40%(5% increase) would be a significant revenue boost given current production AND all the wells being worked on now. 

Per Note 1, the Company has the ability to further increase its ownership interest in KUB Holdings from 35%
to 40% on meeting certain benchmarks and optional payments. The Company can earn an additional 2.5%
ownership interest when the majority owner of KUB Holdings has received a cumulative $25,000 in dividends
from KUB Holdings of which they have received $16,873 as at March 31, 2019. The Company also has an
option to purchase, within one year of the above-mentioned 2.5% transfer from the majority owner, a further
2.5% ownership interest in KUB Holdings at a price equal to 2.5% of the net present value of 2P reserves of
KUB-Gas at a 10% discount at the time of exercise. 

Another note to follow given the excess of cash in the bank for KUB.V:

During the year ended December 31, 2018 and the three months ended March 31, 2019, the Company
purchased Guaranteed Investment Certificates with a Canadian financial institution with annual interest rates
between 2.26% and 2.5% that are redeemable at any time


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## EPS_Investor (Sep 7, 2017)

Looks like some major players are coming into Ukraine, such as VET.T and with supply issues and high prices, KUB will just get more valuable.

Vermilion, Aspect and EPH submitted bids for oil and gas acreage in Ukraine & Ukraine boosts gas imports by 19% in Jan-May 2019

Vermilion, Aspect and EPH submitted bids for oil and gas acreage in Ukraine - https://www.worldoil.com/news/2019/...itted-bids-for-oil-and-gas-acreage-in-ukraine

Ukraine boosts gas imports by 19% in Jan-May - https://www.unian.info/economics/10574277-ukraine-boosts-gas-imports-by-19-in-jan-may.html

UKRAINE INCREASES GAS INVENTORIES BY 2 BCM IN MAY - https://open4business.com.ua/ukraine-increases-gas-inventories-by-2-bcm-in-may/


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## EPS_Investor (Sep 7, 2017)

Chens Picks NYC - KUB June 2019 Update

https://www.chenpicks.com/

June 2019 (Starts At 18:30) : https://www.youtube.com/watch?v=mfHBREcmhog&feature=youtu.be

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.


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## EPS_Investor (Sep 7, 2017)

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]


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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


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## EPS_Investor (Sep 7, 2017)

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/﻿


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## EPS_Investor (Sep 7, 2017)

New 52 week high today and volume is decent as well. Looking forward to September.


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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. As well, Vermillion and Cub share directors, another benefit.


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## EPS_Investor (Sep 7, 2017)

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 .


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## junior minor (Jun 5, 2019)

Interesting, I was actually reading regarding this in another Forum which mentioned that the plug might be pulled with no further warning whatsoever right after the St-Sylvester, coinciding with the end of this year and the start of the one that has yet to arrive. https://www.themoscowtimes.com/2019...nter-as-russia-prepares-to-cut-off-gas-a65496 

Not a very merry way to start the day. Had no knowledge of the Vermilion, thanks for notifying. I'll take that you figured something regarding their board of directors by reading a lot of documents!


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## EPS_Investor (Sep 7, 2017)

junior minor said:


> Interesting, I was actually reading regarding this in another Forum which mentioned that the plug might be pulled with no further warning whatsoever right after the St-Sylvester, coinciding with the end of this year and the start of the one that has yet to arrive. https://www.themoscowtimes.com/2019...nter-as-russia-prepares-to-cut-off-gas-a65496
> 
> Not a very merry way to start the day. Had no knowledge of the Vermilion, thanks for notifying. I'll take that you figured something regarding their board of directors by reading a lot of documents!



Yeah it's kind of scary for Ukraine. The country has been stockpiling natural gas for a few months now, which has driven down the price and of course why KUB showed a tiny loss for Q2. But longer term (3 months) we could see natural gas prices spike to record numbers because of Russia cutting off Ukraine. 

KUB is in a sweet spot, the new Ukrainian is pro business, lots of companies are coming to the country, Vermillion is there now and with all the connections to Kub and similar assets, the potential here is good. NAFTA(Slovakian Company) is determined to get a good production base going and these 3 wells have been in the works for years. 

I'm hoping Cub Energy goes from 900boed to 2000boed in the next 120 days. 3 west wells at 50%, 1 well in the east, and then they have dozens of other locations. Add in that NRU project where the well already produces 3-400boed and they own it 100%. October couldn't come sooner!


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## EPS_Investor (Sep 7, 2017)

New Video From Cub Energy Showing Western JV Well Sites & Drilling

http://www.cubenergyinc.com/media_centre/gallery/

https://www.youtube.com/watch?v=tjd5wJ2ejK4&feature=youtu.be


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

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.


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## EPS_Investor (Sep 7, 2017)

Today VET announced results and also put out a company presentation. Information regarding their Ukraine purchase was unknown until now. But if you compare the presentation information and maps below, you can see that Vermilion is very close to Cub Energy. So keeping an eye on both companies for drill results. In truth, it almost makes more sense for VET to acquire KUB since VET shares the same JV in Slovakia(NAFTA) and have similar mineral leases. They also share directors.

https://www.vermilionenergy.com/files/Vermilion_Energy_-_Corporate_Presentation_-_Nov_2019_-_WEB.pdf

Awarded two exploration licenses totaling approximately 500,000 gross acres in Ukraine, in a 50/50 partnership with Ukrgazvydobuvannya ("UGV“), a Ukrainian state owned gas producer
► Partnership includes access to technical data, local drilling fleet, and key infrastructure
► Licenses located in one of Europe’s most prolific natural gas basins, the Dnieper-Donets Basin
► Adjacent to several existing multi-TCF gas fields
► Limited application of modern exploration and exploitation technology
► Production sharing agreement has attractive fiscal regime with gas market priced on European imports at Ukrainian hub (TTF premium)
► Modest back-end capital commitment over a 5-year period

Compared To KUB:

http://www.cubenergyinc.com/_resources/corporate-presentation.pdf?v=4

Transcarpathian Sedimentary Basin (West)
▪ 3 licenses 100% and 50% owned by Cub
▪ 108,000 gross acres (70,500 net) 

Dnieper-Donets Sedimentary Basin (East)
▪ 6 licenses 35% owned by Cub
▪ 203,000 gross acres (71,000 net acres)


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## EPS_Investor (Sep 7, 2017)

CUB's partner is adding more leases in the Eastern part of Ukraine, close to where Vermilion Energy bought this year. The three companies should just merge and have one large Ukrainian natural gas company. Both VET and KUB are partners with NAFTA, only makes sense.


https://www.nafta.sk/sk/nafta-sa-stala-vitazom-tendra-o-vatazhkivsku-licenciu

NAFTA became the winner of the tender for Vatazhkivskou license
Bratislava, October 31, 2019 - NAFTA, through its subsidiary NAFTA RV LLC
in Ukraine, has participated in a tender for Vatazhkiv license. With its bid in the auction succeeded and obtained
a license Vantazhkivske near the city of Poltava.

NAFTA has participated in an online auction offering five licenses covering a total area of ​​more than 700 km 2 . According to the official results of the
tender, the company was successful with its offer. Once all the conditions and other formal steps have been fulfilled
, NAFTA will acquire a license for the exploration and subsequent production of hydrocarbons under that license for 20 years. The main objective of the
company is to use its long-term experience, to comprehensively explore the potential of the license and to identify all extractable stocks.

NAFTA has been active in Ukraine since 2016, when it acquired fifty percent of its license for exploration and production of hydrocarbons
in the west of Ukraine with CUB Energy Inc. In this exploration region, NAFTA and its partner carried out a 3D seismic
survey and in September 2019 began the first exploration well under the Uzhhorod license.


NAFTA is an international company with extensive experience in the field of storage and construction of underground gas storage
facilities in Slovakia and also a Slovak leader in the exploration and extraction of hydrocarbons. The company is active in Central
European countries and is present in the Czech Republic, Germany, Austria and Ukraine. NAFTA
operates underground storage facilities with a total storage capacity of approximately 60 TWh in several countries, making it the 6th largest
gas storage operator in Europe, conducting exploration activities and participating
in renewable energy storage projects .


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## EPS_Investor (Sep 7, 2017)

Kremlin Confirms Putin to Take Part in Ukrainian Peace Summit in Paris

https://www.nytimes.com/reuters/2019/11/18/world/europe/18reuters-ukraine-crisis-russia-summit.html

Kremlin Confirms Putin to Take Part in Ukrainian Peace Summit in Paris

By Reuters
Nov. 18, 2019
Updated 6:28 a.m. ET

MOSCOW — The Kremlin confirmed on Monday that Russian President Vladimir Putin would take part in a four-way international summit in Paris on Dec. 9, an attempt to advance efforts for a peaceful resolution to the conflict in eastern Ukraine.

The French presidency said on Friday that the leaders of France, Germany, Russia and Ukraine would take part. But until Monday the Kremlin had failed to publicly confirm its attendance.

Kremlin spokesman Dmitry Peskov told reporters on Monday that Putin would attend, but declined to discuss what Moscow's expectations for the event were.

(Reporting by Alexander Marrow and Maria Kiselyova; Editing by Andrew Osborn)


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## EPS_Investor (Sep 7, 2017)

Cub Energy Inc. Financial Results For Nine Months (In US Dollars. Multiple By 1.33 For CAD Value)
All information below is available on Sedar

ASSETS
Cash: $7,515,000
Prepaid Expenses: $978,000
Receivables: $257,000
Equity Investment: $9,912,000 
Property & Equipment: $4,923,000
Non-Current Receivables: $842,000
Total Assets: $24,427,000 (June Asset Value: $23 million, increase of $1.4 million in assets)

Liabilities 
Payables: $4,022,000
Loan from KUB-Gas: $5,917,000
Shareholder Loan: $2,000,000 - From CEO who owns majority of CUB shares
Provisions: $588,000
Total Liabilties: $12,527,000 (June Liabilities: $12.444 million)


MD&A Highlights:

• The Company reported income from equity investment of $2,350,000 during the nine months ended
September 30, 2019 as compared to income of $4,953,000 in the comparative 2018 period.
• The Company reported net income of $260,000 or $0.00 per share during the nine months September
30, 2019 as compared to net income of $2,508,000 or $0.01 per share during the same period in 2018.
• The Company recorded $2,790,000 in dividends during the nine months September 30, 2019
compared with $3,847,000 in dividends in the comparative 2018 period. 
• Production averaged 824 boe/d (97% weighted to natural gas and the remaining to condensate) for
the nine months September 30, 2019 as compared to 826 boe/d for the 2018 comparative period.
• Netbacks of $18.49/boe or $3.08/Mcfe were achieved for the nine months September 30, 2019 as
compared to netback of $27.22/Boe or $4.54/Mcfe for the comparative 2018 period.
• Achieved average natural gas price of $5.85/Mcf and condensate price of $48.43/bbl during the nine
months September 30, 2019 as compared to $7.47/Mcf and $59.80/bbl for the same period in 2018.
• CNG drilled the U101 well that 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. The U101 well obtained valuable subsurface geological and petrophysical data
that will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on
the license. This upcoming study may result in revising the drilling priorities for the identified prospect
inventory.
• Kub-Gas expects to drill a new well called Makeevskoye-30 (“M-30”). The Makeevskoye licence has
produced nearly half of the historical production for Kub-Gas. The M-30 well is expected to spud in Q1
2020.
• During the quarter ended September 30, 2019, Kub-Gas performed a recompletion of the Olgovskoye18 (“O-18”) well in the B-8-9 reservoir which resulted in a 30% increase in production and the well is
now producing at a combined rate of approximately 0.9 million cubic feet per day (“MMcf/d”). KubGas uses its own completion equipment and personnel.
• The Company has determined that the Nitrogen Rejection Unit (“NRU”) requires process
improvements before it can be deployed to Ukraine. The Company is currently negotiating with
engineering firms to complete the required modifications.

Eastern Ukraine KUB-Gas Assets (35%)
Kub-Gas expects to drill the M-30 well in Q1 2020. The Makeevskoye licence has produced nearly half of the
historical production for Kub-Gas. The M-30 well will target the M-7 horizon.
Kub-Gas recompleted the Olgovskoye-7 (“O-7”) well to the M6v which increased its production to 0.6 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. During the quarter ended September 30, 2019, Kub-Gas performed a recompletion of the O18 well in the B-8-9 reservoir which resulted in a 30% increase in production and the well is now producing at
a combined rate of approximately 0.9 MMcf/d. Kub-Gas uses its own completion equipment and personnel, so
the costs are associated with materials and outside services as needed for particular activities. There are
approximately ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in
the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete
these additional zones in the existing wells.
On the West Olgovskoye licence, Kub-Gas expects to commence a 270 km2 3D seismic program in 2020 to
delineate known structures found from 2D seismic.

Western Ukraine CNG Assets (50% Interest)
In western Ukraine, CNG drilled the U101 well that 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. The U101 well obtained valuable subsurface geological and petrophysical data that
will be used to refine the seismic mapping and geo-modelling prior to drilling additional wells on the license.
This upcoming study may result in revising the drilling priorities for the identified prospect inventory. The costs
of drilling the first three wells will be incurred 100% by our partner.

Western Ukraine Tysagaz Assets (100% Interest)
The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the
allowable limit stipulated by the gas pipeline operator. The Company is currently selling a modest amount of
rich gas from a deep well to evaluate the Mesozoic formation on the RK field.
During the nine months ended September 30, 2019, and due to continued delays in the completion of the NRU,
the Company and the NRU manufacturer entered into a mutual release agreement, including the release of
the arbitration claim, in exchange for the Company taking physical possession of the NRU “as is”. The Company
has determined that the NRU requires process improvements before it can be deployed to Ukraine. The
Company is currently negotiating with engineering firms to complete the required modifications

Foreign Currency Translation Income/Loss
During the third quarter ended September 30, 2019, the foreign currency translation income was $1,832,000
as compared to a loss of $1,721,000 in the comparative 2018 quarter. The foreign currency translation income
was $3,011,000 during the nine months ended September 30, 2018 as compared to a loss of $376,000 in the
comparative 2018 period. The income and losses relate to the revaluation of the Company’s foreign assets and
liabilities from the local currency (Ukrainian, Canadian and European currencies) to the US dollar in accordance
with the Company’s accounting policy for the translation of its subsidiaries. The recent foreign currency
translation income was primarily the result in the strengthening of the Ukrainian Hryvnya against the US dollar.
The carrying value of the assets of the Ukrainian subsidiaries were materially impacted by the volatility of the
local currencies in the past. The appreciation/devaluation materially raises/lowers the carrying value of the
Ukrainian property, plant and equipment and the value of the equity investment in KUB Holdings. These
gains/losses do not impair the ability of those assets or liabilities to perform their intended purpose.

Liquidity, Capital Resources and Financings
At September 30, 2019, the Company had a cash balance of $7,515,000 (December 31, 2018 - $7,236,000) and
working capital deficit of $1,189,000 (December 31, 2018 – working capital of $3,798,000). The working capital
was largely impacted by the Kub Gas loans being classified as current liabilities as a result of callable feature
allowing the loans to be called any time before the maturity date of December 31, 2020. The Kub Gas loans
amount to $5,917,000. The Company had no long-term debt or capital leases other than the Pelicourt loan.
The Company has historically been able to raise funds through the issuance of common shares or debt although
there are no assurances funds will be able in the future.
The Company has a $2,000,000 secured shareholder loan with Pelicourt, a related party to the Company. The
shareholders loan bears interest at 12% per annum payable quarterly and the principal of the shareholder loan
is due on January 31, 2021. Pelicourt was granted security over Gastek which indirectly owns the 35% interest
in KUB-Gas. The security is available on an event of default and limited only to the amount owing on the
shareholder loan including principal and interest.
During the nine months ended September 30, 2019, the Company received $2,790,000 in dividends from KUB
Holdings as compared to $3,847,000 in dividends in the 2018 comparative period.
During the nine months ended September 30, 2019, the Company expended $9,000 on capital expenditures as
compared to $219,000 in the 2018 comparative period, which was largely related to the NRU.
During the nine months ended September 30, 2019, KUB-Gas incurred approximately $1,226,000 (2018 -
$3,444,000) of capital expenditures on property, plant and equipment which was the workovers in 2019 and
primarily the NY-3 well in 2018. CNG expended approximately $1,670,000 for drilling the U101 well during the
nine months ended September 30, 2019 as compared to $71,000 in the 2018 comparative period. The CNG
capital expenditures are largely paid by the company’s 50% equity partner.


Outlook
In eastern Ukraine, Kub-Gas is focused on drilling the Makeevskoye-30 (“M-30”) well in Q1 2020 and evaluating
additional recompletion operations given the success of recompletions in 2018 and 2019. Kub-Gas expects to
commence a 3D seismic program in 2020 on the West Olgovskoye licence to delineate known structures found
from 2D seismic.
In western Ukraine, CNG is utilizing the valuable subsurface data from the U101 well and refining its model to
determine the next drilling priorities. The costs of drilling the first three wells will be incurred 100% by our
partner.


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## EPS_Investor (Sep 7, 2017)

Ukraine and Russia agree to implement ceasefire

https://www.bbc.com/news/world-europe-50713647

Ukraine and Russia agree to implement ceasefire

2 hours ago

Ukraine and Russia have agreed to implement a "full and comprehensive" ceasefire in eastern Ukraine by the end of 2019, after top-level talks.

Russian President Vladimir Putin and Ukraine's Volodymyr Zelensky met face to face in Paris on Monday.

Five-and-a-half years of fighting between Ukrainian government forces and Russian-backed rebels have cost 13,000 lives.

The negotiations were brokered by the leaders of France and Germany.

They follow a big prisoner swap and the withdrawal of Ukraine's military from three key areas on the front line.

What was agreed?

In a written statement, the countries agreed to the release and exchange of all "conflict-related detainees" by the end of the year.

The two sides also pledged to disengage military forces in three additional regions of Ukraine by the end of March 2020, without specifying which regions would be affected.

Additional talks will be held in four month to take stock of the ceasefire's progress.

At a press conference after the talks in France's Élysée Palace, President Putin hailed the talks as an "important step" towards a de-escalation of the conflict.

President Zelensky said the issue of Russian gas exports via pipelines through Ukraine had been "unblocked" after a dispute about transit tariffs, and an agreement would now be worked out.

But Russia and Ukraine continue to disagree on issues such as the withdrawal of Russia-back troops, and elections in areas of Ukraine held by separatist rebels.

Mr Putin also called for a change in Ukraine's constitution to give special status to the Donbas region, which is held by the rebels.

Ukraine's President Zelensky also told reporters that Ukraine would not make any territorial concessions in exchange for peace.

"We saw differences today," said French President Emmanuel Macron, who hosted the talks with German Chancellor Angela Merkel.

"We didn't find the miracle solution, but we have advanced on it," he added.


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## EPS_Investor (Sep 7, 2017)

NAFTA confirms its interest in the project in eastern Ukraine

Note: As Ukraine heals from years of battling with rebels (recent peace efforts in December), more companies will continue to invest in Ukraine's lucrative oil and gas assets. Over a million acres have been purchased over the last several months between Vermilion Energy, NAFTA and other large cap companies. This bodes well for Cub Energy Inc as the company holds 140,000 acres of mostly producing assets with many drill targets. Below it also mentions the "Uzhgorod license with a partner" this is Cub Energy. NAFTA still has 2 wells to drill at no cost to Cub, along with a dozen other possible targets after that. Add in the NRU project(completed by end of 2020) and the Eastern wells (M30 to start shortly) and we have a wonderful evolving story. Company is well funded and has great cash flow. The sell off in the fall was just a large shareholder from years ago that wanted out, but does not justify the true value of the company at present time. 

https://www.nafta.sk/sk/nafta-potvrdzuje-svoje-zaujem-o-projekt-na-vychode-ukrajiny

Bratislava / Prague, 9 December 2019 - NAFTA as, together with the EPH energy group, are continuing their joint efforts to acquire the Yuzivska project in eastern Ukraine.



NAFTA as (NAFTA) and EPPE Power Europe (EPPE) are prepared to jointly develop the Yuzivska project under conditions approved by the Government of Ukraine. Both companies belong to the energy group Energy Industrial Holding (EPH), and were approved by the Interministerial Commission at the Ukrainian Ministry of Energy as investors who meet the technical and financial conditions for the development of the Yuzivska project.



NAFTA will act as a technical operator in the project. The company has been operating in the field of hydrocarbon exploration and extraction for more than 105 years and intends to use the unique know-how it has gained from many projects in the project for many years in its core areas. In addition, NAFTA has been actively operating in Ukraine since 2016, where they are developing a Uzhgorod license with a partner.



“The EPH Group declares a continuing interest in the Yuzivska project and is ready to assume the relevant investment obligations under the approved Production Sharing Agreement (PSA). Our subsidiary EP Yuzivska is ready to sign a PSA approved by the Ukrainian government and EPH is ready to issue a guarantee to the parent company to secure the financial resources needed for the implementation and rapid development of the Yuzivska project immediately after its approval. Since we have a detailed mapping of the project, we can guarantee the timely extraction of hydrocarbons for the Ukrainian market, ” said a source from the EPH Group.



“Yuzivska is a greenfield project associated with a high geological risk and requires extensive research work. We believe that by implementing our know-how, experience and methods, we will be able to uncover the full potential of the license. As part of this project, we are ready to allocate our capacities to Ukraine in order to fully develop this project and ensure increased energy independence of Ukraine, ” said the CEO of NAFTA as


NAFTA as is an international company with extensive experience in the field of storage and construction of underground gas storage facilities in Slovakia and also a Slovak leader in the exploration and extraction of hydrocarbons. The company is active in Central European countries and is present in the Czech Republic, Germany, Austria and Ukraine. NAFTA operates underground storage facilities in several countries, conducts exploration activities and participates in renewable energy storage projects. With a total storage capacity of approximately 60 TWh, it is the 6th largest gas storage operator in Europe.


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## EPS_Investor (Sep 7, 2017)

Cub Energy unit begins drilling M-30 well

2020-01-28 07:48 MT - News Release

Mr. Mikhail Afendikov reports

CUB ENERGY INC. ANNOUNCES SPUDDING OF THE M-30 WELL IN EASTERN UKRAINE

Cub Energy Inc.'s 35-per-cent-owned KUB-Gas LLC subsidiary, which owns and operates the eastern Ukraine licences, has commenced drilling of the Makeevskoye-30 (M-30) well. The M-30 well is planned to a total depth of 1,985 metres to evaluate several prospective horizons. The M-30 well is financed through existing Kub-Gas cash flow.

Mikhail Afendikov, chairman and chief executive officer of Cub, said: "We are pleased to announce the spudding of the M-30 well in eastern Ukraine. The M-30 well will be the first well drilled on the producing M field in over three years after recent successful recompletions on the M and O fields at Kub-Gas."

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.

© 2020 Canjex Publishing Ltd. All rights reserved.


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## EPS_Investor (Sep 7, 2017)

Good news for KUB and VET:

FT: Putin's new Ukraine man lifts hopes of peace progress in Kyiv

10:19, 30 January 2020 WORLD 1577 0 People close to the peace talks said the changes were intended to formalise Mr. Kozak's emergence as Mr. Putin's lead negotiator on Ukraine.

https://www.unian.info/world/108519...an-lifts-hopes-of-peace-progress-in-kyiv.html

Vladimir Putin's promotion of a crucial figure driving peace talks with Ukraine has been welcomed by Kyiv as a signal of renewed willingness in Moscow to resolve the six-year conflict between the two countries. Dmitry Kozak, a former deputy prime minister, was appointed to a newly created position in the presidential administration last week as part of sweeping changes in the Kremlin that analysts said were designed to lengthen Mr. Putin's rule, according to the Financial Times. The announcement was followed by the reported resignation of Vladislav Surkov, Mr. Putin's chief negotiator on Ukraine.

People close to the peace talks said the changes were intended to formalise Mr. Kozak's emergence as Mr. Putin's lead negotiator on Ukraine. Mr. Kozak oversaw two landmark prisoner exchanges last year that were widely hailed as progress in efforts to bring an end to the conflict between Ukraine and Russia-backed armed forces. The conflict in eastern Ukraine, which started with Russia's annexation of Crimea from Ukraine in 2014, has claimed 14,000 lives.

Mr. Kozak has also helped resurrect four-party peace talks led by France and Germany. The so-called "Normandy four" negotiations resumed last month after years of stalling under Mr. Surkov. "Surkov was playing interference. If he is really gone this is good," said a person close to Ukrainian president Volodymyr Zelensky.

Mr. Kozak will now have to reconcile Ukraine's efforts to reclaim the two Moscow-backed breakaway states on its border with Russia. Mr. Zelensky has refused to grant the regions lasting autonomy – a move seen in Ukraine as giving Russia a veto over Kyiv's pro-western foreign policy – and instead wants to include them in a planned decentralisation reform. "Surkov was [driving] a policy of weakening Ukraine and preventing the signature of future EU and Nato agreements by politically destabilising the territory," a person familiar with the peace talks said. "Now we are more into managing the process on the ground. [ . . .] It's a more pragmatic approach. Kozak is a stronger administrator and good on the economy." But other people close to the talks cautioned that Mr. Putin, who has shown no sign of easing pressure on Ukraine, will remain the ultimate decision maker. "Zelensky's guys just associate all the problems with Surkov. They don't get who they're dealing with," the former Kremlin colleague said. "Of course they won't give the territories back. It's a fantasy."


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