Cub Energy Inc. Announces Q3 2016 Financial and Operational Results
(firmenpresse) - HOUSTON, TEXAS -- (Marketwired) -- 11/16/16 -- Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE: KUB), a Ukraine-focused upstream oil and gas company, announced today its unaudited interim financial and operating results for the third quarter of 2016. All dollar amounts are expressed in United States Dollars. This update includes results from KUB-Gas LLC ("KUB-Gas"), which Cub has a 35% equity ownership interest (increased from 30% effective February 8, 2016), and Tysagaz LLC ("Tysagaz"), Cub''s 100% owned subsidiary.
Mikhail Afendikov, Chairman and CEO of Cub said: "The third quarter results highlight the improving financial condition of the Company. The working capital of $0.8 million and cash position of $3.6 million at September 30, 2016 is the best financial position of the Company in over two years. Also significant is the receipt of $0.3 million in dividends from KUBGAS Holdings Ltd. subsequent to the third quarter of 2016, which is the first dividend the Company received from Ukraine since the National Bank of Ukraine ("NBU") implemented restriction on cross border dividends in 2014. The Company expects to continue to repatriate dividends to the extent possible and allowed by the NBU, although there are no assurances the NBU will continue to ease restrictions into 2017."
Operational Highlights
Financial Highlights
Outlook
The Company has re-initiated material capital expenditures in 2016 in light of the recently reduced royalty rate of 29% effective January 1, 2016. The Company expects KUB-Gas to drill one new well in the first quarter of 2017 which will be self-funded by KUB-Gas. In western Ukraine, the Company expects to perform the RK-1 recompletion in the fourth quarter of 2016 and to purchase and ship the compressors for the NRU. The goal is to resume production at the RK Field in the first quarter of 2017. Also in western Ukraine, CNG expects to shoot a 118 square kilometre 3D seismic program when weather conditions permit.
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.
Reader Advisory
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: 16.11.2016 - 15:05 Uhr
Sprache: Deutsch
News-ID 1470557
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