News: Cub Energy earns $962,000 (U.S.) in Q1
posted on
May 16, 2019 12:10AM
2019-05-15 06:11 MT - News Release
Mr. Mikhail Afendikov reports
CUB ENERGY ANNOUNCES NET EARNINGS OF US $1.0 MILLION FOR FIRST QUARTER OF 2019
Cub Energy Inc. has provided 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, in which Cub has a 35-per-cent equity ownership interest; Tysagaz LLC, Cub's 100-per-cent-owned subsidiary; and CNG LLC, 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 [of] $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 under way for the first three wells on the jointly owned Uzhgorod licence, expected to be drilled this year. All three wells are to be financed 100 per cent by our partner."
Financial highlights
Operational highlights
(in thousands of U.S. dollars) Three months ended March 31, March 31, 2019 2018 Petroleum and natural gas revenue $49 $- Pro-rata petroleum and natural gas revenue 3,452 3,427 Revenue from gas trading 4,479 5,670 Net income 962 779 Income per share -- basic and diluted 0.00 0.00 Funds generated from operations (35) 1,768 Capital expenditures - 134 Pro rata capital expenditures 56 335 Pro rata netback ($/boe) 24.49 25.93 Pro rata netback ($Mcfe) 4.08 4.32
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 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 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 three-well program is to be financed 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.
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