Cub Energy Inc. Announces Q1 2017 Financial and Operational Results
(firmenpresse) - HOUSTON, TEXAS -- (Marketwired) -- 05/17/17 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB), a Ukraine-focused upstream oil and gas company, announced today its unaudited financial and operating results for the first quarter of 2017. 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 are pleased to report income from our equity investment during the first quarter of 2017 amounted to $2.1 million and our net income was $0.9 million. The income from our equity investment was largely driven by a $6.88/mcf average natural gas price and a $4.58/mcfe netback. We're encouraged by the continued easement of capital controls by the National Bank of Ukraine including recent amendments allowing Ukraine companies to dividend out their 2016 earnings which was previously limited to 2014 and 2015 earnings. To date in 2017, the Company has received $1.3 million in dividends."
Operational Highlights
Financial Highlights
Notes:
Outlook
The Company expects KUB-Gas to drill two new Olgovskoye field wells in 2017 which will be self-funded by KUB-Gas. The first well, O-26, was spudded and is expected to be drilled to a depth of 3,150 meters. This well is expected to be followed by the O-28 well later in 2017. KUB-Gas will also commence a review and interpretation of a 150 kilometer 2D seismic survey on the West Olgovskoye licence in eastern Ukraine.
In western Ukraine, the Company continues with the trouble shooting and optimization of the nitrogen rejection unit ("NRU") with a goal of resuming production at the RK field. Also in western Ukraine, CNG LLC completed a 118 square kilometer 3D seismic program and will commence interpretation shortly to identify drill targets.
Supporting Documents
Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated Management's Discussion and Analysis, have been filed on SEDAR () and has been posted on the Company's website at .
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE: 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:
Oil and Gas Equivalents
A barrel of oil equivalent ("boe") or units of natural gas equivalents ("Mcfe") is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) or a Mcfe conversion of 1bbl: 6 Mcf is, based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.
To the best of the Company's knowledge, the disclosure in this press release is prepared in accordance with NI 51-101 standards.
Reader Advisory
With the current cash resources, suspension of the RK field, uncertainty surrounding the successful installation of the NRU, dividend restrictions, currency fluctuations, reliance on a limited number of customers, and impact on carrying values, the Company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the Company to continue as a going concern and meet its obligations as they become due.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Cub believes that the expectations reflected in the forward-looking information are reasonable; however there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Ukraine, the Black Sea Region and globally; political unrest and security concerns in Ukraine; industry conditions, including fluctuations in the prices of natural gas and foreign currency; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other fourth party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Mikhail Afendikov
Chairman and Chief Executive Officer
(713) 677-0439
Patrick McGrath
Chief Financial Officer
(713) 577-1948
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Datum: 17.05.2017 - 21:06 Uhr
Sprache: Deutsch
News-ID 542871
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HOUSTON, TEXAS
Kategorie:
Oil & Gas
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