Cub Energy Inc (KUB)

[JonnyRBuck12]

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

[JonnyRBuck12]

6 / 395,000 0.05 --- 0.06 409,000 / 10
6 / 266,000 0.045 --- 0.065 460,000 / 6
10 / 530,000 0.04 --- 0.07 156,000 / 3
7 / 352,000 0.035 --- 0.075 157,000 / 3
6 / 331,000 0.03 --- 0.08 530,000 / 3
4 / 154,000 0.025 --- 0.095 50,000 / 1
2 / 210,000 0.02 --- 0.25 43,000 / 1
3 / 180,000 0.015 --- 0.285 30,000 / 1
1 / 25,000 0.01 --- 0.29 1,837,000 / 2
1 / 60,000 0.005 --- 0.295 156,000 / 1

[JonnyRBuck12]

Naftogaz raises gas prices for industry by 5.2-11.5% in May

https://www.ukrinform.net/rubric-economy/2688102-naftogaz-raises-gas-prices-for-industry-by-52115-in-may.html

NJSC Naftogaz of Ukraine will raise the price of natural gas for industrial consumers and other economic entities by 5.2-11.5% from May 1, 2019, the company’s press service has reported.
“The proposed prices for natural gas from the company's resource have been differentiated depending on the volume of purchases, terms of payment and the state of previous settlements with Naftogaz. Depending on these indicators, Naftogaz proposes natural gas at the price of UAH 6,299.00 – 6,948.00 per 1,000 cubic meters (without VAT),” reads the report.

Comparing with the prices in April 2019, the prices will be raised by 5.2-11.5% in May, the company stated.

In particular, the final price for industrial consumers and other economic entities that purchase up to 50,000 cubic meters of natural gas on a prepayment basis will be UAH 7,558.8 per 1,000 cubic meters. For industrial consumers and other economic entities that purchase over 50,000 cubic meters of natural gas or make a payment during a month, the final price will be set at UAH 8,337.6 per 1,000 cubic meters.

[JonnyRBuck12]

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

[JonnyRBuck12]

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

- Like Mart Resources he says (Went from $0.10 to $.150)

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

[JonnyRBuck12]

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

[JonnyRBuck12]

The Cub Energy proxy states one resolution of a rollback being considered if appropriate. I myself and several associates of mine have verified that this will not happen unless a major asset is acquired. If you look on SEDAR, several prior proxy forms show a rollback and this is just carrying forward.

From the 2019 proxy: 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;

[JonnyRBuck12]

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.

[JonnyRBuck12]

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-kompanyya-nafta-planyruet-ynvestyrovat-pochty-200-mln-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.

[JonnyRBuck12]

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.

[JonnyRBuck12]

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.

[JonnyRBuck12]

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.

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EnerJex Resources, Inc. Acceptance by (NYSE American: ENRJ)
OIL MARKET IS HEATING UP $$$$
ADVANCE MERGER expected to occur late in the fourth quarter of 2017 or first quarter of 2018,
MERGER WITH:

AgEagle Valued @ $20,000,000 prior to the completion of any financing that occurs in advance of the merger.