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KUB should be 10 cents right now just on a 10X multiple with is standard for small cap EPS plays. But add in the JV partner potential and other projects, fair value right now in my opinion is around 15 cents.
Here's hoping, the sooner the better.....
Based on fundamentals I have thought that a PPS of at least a dime or so was realistic, that's why I've been holding this bag for 2+ years now and am loaded. Its not heavy, at 4 cents or so I could walk away pretty much whole, but if KUB gets put in play I can easily see it trading for 20 cents or more....
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.
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.
100% look at the numbers and who their JV partner is, multi billion dollar nat gas company who is drilling at no expense/risk to Cub. Plus with their other projects, stock should be 2-3 times higher for a more realistic stock price.
I've been waiting on this one a long time...
A couple years anyway....do you think its ever gonna be put seriously in play?
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
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 underway at the time of this report with another 3 in the permitting phase. Kub-Gas may drill one additional well in 2019 and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D 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 license in mid 2019 on structures defined by 3D seismic. The well costs are expected to be incurred 100% by our partner.
From Last Information Circular:
Principal Holders of Voting Shares Other than as disclosed below, to the knowledge of the Corporation's directors and executive officers, as at the date of this Information Circular, no person or corporation beneficially owns, directly or indirectly, or controls or directs voting securities carrying 10% or more of the voting rights attached to the issued and outstanding Common Shares of the Corporation. Name No. of Common Shares % of Outstanding Common Shares Pelicourt Limited(1) 124,336,089 39.5% Fergava Finance Inc. 44,444,444 14.1% Notes: (1) Mikhail Afendikov, Executive Chairman and Chief Executive Officer of the Corporation, owns a 72.4% interest in Pelicourt Limited. As of the Record Date, the directors and officers of Cub own, directly or indirectly, 3,685,572 Common Shares, representing approximately 1.2% of the issued and outstanding Common Shares, 9,900,000 Stock Options, representing approximately 57% of outstanding Stock Options, zero Restricted Share Units and zero Warrants.
Blog posting at ATB
http://www.avoidthebag.com/2017/01/kubv-has-its-highest-close-in-over-2.html
Good article on Russia and Ukraine
Winter is coming and its looking like there could be NG supply problems, that can only help prices if they can work out a deal with the EU and Russia:
https://www.bloomberg.com/news/articles/2016-12-09/eu-seeks-to-thaw-russia-ukraine-gas-spat-to-ensure-winter-supply
Management options granted at .08 cents CDN.....
Gotta like that, at a premium to current prices around .05 cents...
Chart showing a cup pattern...
From June/July to present....we shall see if a handle forms, and if it plays out.
Blog posting about Cub Energy at Avoid The Bag.....
http://www.avoidthebag.com/2016/12/cub-energy-kubv-tnpef-approaching-52.html
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