Cub Energy Inc. Announces Operating Results for the Second Quarter Ended June 30, 2014
Jul 10 14
Cub Energy Inc. announced operating results for the second quarter ended June 30, 2014. Average production for the second quarter was 1,868 barrels of oil equivalent per day (boe/d) (including Cub's WI in KUB-Gas), up from 1,857 boe/d in the first quarter. This is a 25% increase over the second quarter of 2013 average production of 1,490 boe/d. The second quarter exit rate was 2,154 boe/d, representing a 10% increase from 1,952 boe/d exit rate in the first quarter. The exit rate increased from the contribution of the M-17 and RK-21 wells, both of which started production late in the second quarter 2014. In western Ukraine, operations continue uninterrupted. The RK-1 re-entry has reached TD of 3,995 metres, and it is currently undergoing preliminary operations prior to perforating. In eastern Ukraine, during the second quarter, the M-17 well in Ukraine was completed and tested. Logs had indicated pay in the S5 and S6 zones, and resource potential in the R30c and S7 sections. The S7 tested 900 Mcf/d without stimulation. The S6 was tested at multiple rates, the highest of which was 6.6 MMcf/d at a flowing wellhead pressure of 2,970 psi. The S6 zone was placed on production on June 26, and has averaged 6.4 MMcf/d (1.9 MMcf/d Cub WI) to date. The S7 will be stimulated when development operations resume, and M-17 will be completed as a dual producer at that time. The O-11 well was spud on April 4, 2014, after the drilling rig moved on from M-17. It reached its planned TD of 3,230 metres in late May, was cased and the rig released. In late June, the well was perforated, and experienced a strong air blow, followed by gas to surface. The well was shut in for a pressure build up. No further testing will be undertaken at this time. The NM-4 well was spud on June 16, and drilled to a depth of 102 metres. Surface casing was run to 100.2 metres and cemented in place prior to suspending drilling operations.
Cub Energy Announces New Production High and Operations Update
Jun 27 14
Cub Energy Inc. announced that KUB-Gas LLC ("KUB-Gas") achieved a significant milestone in daily production over 1 million cubic metres per day ("MMcm/d") or approximately 36 million cubic feet per day ("MMcf/d") after recent tie-ins. This equates to approximately 10.8 MMcf/d net production to Cub from KUB-Gas. Cub has a 30% ownership interest in KUB-Gas through its 30% shareholding of KUBGAS Holdings Limited. Although production has increased, and will continue, Cub and its partner have decided to suspend current developmental field operations to ensure the continued safety of employees and assets during the ongoing regional conflict in eastern Ukraine. The declared ceasefire between the Ukraine government and pro-Russian separatists has not materialized, forcing a situation where KUB-Gas contractors are refusing to support continued developmental operations at this time.
CUB Energy Announces North Makeevskoye-4 Commences Drilling
Jun 18 14
Cub Energy Inc. announced that the North Makeevskoye-4 exploration well commenced drilling on June 16, 2014. NM-4 is operated by KUB-Gas LLC. NM-4 is located approximately 3 kilometres west of the NM-3 well drilled in July 2013. It is a combination structural/stratigraphic play targeting Moscovian aged channel sands, defined from amplitude anomalies observed on 3D seismic data. The NM-4 prospect is estimated to have 1 Bcf of prospective resources (best estimate) by the company's independent third party evaluator. The planned total depth is 2,000 metres and the well is expected to take 41 days to drill. If NM-4 is successful, it will strengthen the chances of success on two more fault blocks within the same channel system, and could open up a new exploration fairway within the Olgovskoye, Makeevskoye and North Makeevskoye licences.