Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB)announces that the security situation in and around the Makeevskoye, Olgovskoye and North Makeevskoye licences in eastern Ukraine has improved, and that KUB-Gas LLC (“KUB-Gas”),Cub’s 30% owned subsidiary which owns and operates the eastern Ukraine licences, has resumed its drilling program with the spud of the Makeevskoye-22 (“M-22”) well. This well will qualify for the lower royalty rate of 30.25%.
M-22 is located on the southwest side of the major fault that runs through the Makeevskoye and Olgovskoye licences and is a near offset to the M-2 well drilled in 1991, which tested 300 thousand cubic feet per day (“Mcf/d”) from the S5 in the Serpukhovian section and is currently producing approximately 272 Mcf/d. The primary target in M-22 is the S6 zone which has proven very prolific in the M-16, M-17, and O-15 wells. There are secondary targets in the S5 and S7 zones as well. Total time to drill, test and complete is expected to be approximately 80 days. In the event of a successful well, tie-in will follow very shortly as several flowlines were constructed earlier this year in anticipation of future drilling.
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 the Black Sea region. 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.