CALGARY - Cub Energy Inc. ('Cub' or the 'Company') (TSXV: KUB), announced today its unaudited financial and operating results for the six months ended June 30, 2022.
All dollar amounts are expressed in United States Dollars unless otherwise noted.
Patrick McGrath, CEO of Cub said: 'Cub finished the quarter ended June 30, 2022 with $8,743,000 cash on hand and working capital of $7,360,000. Subsequent to the quarter end, Cub successfully divested its last asset in Ukraine and is currently evaluating the alternatives for its working capital, including a possible cash dividend or investing in new opportunities.'
Operational Highlights
On February 2, 2022, the Company closed the sale of its 35% interest in KUB Holdings Limited ('KUB Holdings') and received a cash payment of $2,600,000. In conjunction with closing, the Company received the final cash dividend of $2,046,000 and repaid the final loan balance to a subsidiary of KUB Holdings in the amount of $2,481,000 as part of the final debt settlement between the parties.
Achieved average natural gas price of $26.41/Mcf during the six months ended June 30, 2022 as compared to $6.50/Mcf for the comparative 2021 period. Regional pricing materially improved in Ukraine period over period although the 2022 gas price is subject to a material discount to European pricing.
Production averaged 29 boe/d for the six months ended June 30, 2022 as compared to 532 boe/d for the comparative 2021 period. Production decreased due to the sale of the Company's 35% equity investment in KUB Holdings.
Subsequent to the six months ended June 30, 2022, the Company signed a definitive Share Sale and Purchase Agreement ('SPA') for the sale of its 100% interest in 3P International Energy Ltd ('3P') and its wholly-owned Ukraine subsidiary, Tysagaz LLC('Tysagaz'), as previously announced on July 12, 2022 and July 29, 2022. Tysagaz owns the RK field in western Ukraine. The sale is for nominal consideration of $1 and the buyer assuming all of 3P's and Tysagaz' liabilities including the bank loan and all reclamation liabilities. The buyer group is two officers of the Company, Eugene Chaban, the Company's Chief Financial Officer and Sergey Panchuk, the Company's Chief Operating Officer. The sale closed on August 17, 2022.
About Cub Energy Inc.
Cub Energy Inc. (TSX-V:KUB) is an energy company looking to implement western technology and capital, combined with local expertise and ownership, to build a portfolio of assets within an advantaged commodity price environment.
Contact:
Patrick McGrath
Tel: (832) 499-6009
Email: patrick.mcgrath@cubenergyinc.com
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are 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. Forward-looking statements are 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 projected in the forward-looking statements. The Company cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and the Company assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the resource industry.
CARCETTI CAPITAL CORP. 
