HOUSTON, TEXAS--(Marketwired - Nov 27, 2013) - Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB) a Black Sea region-focused upstream oil and gas company, announces the Makeevskoye-17 ("M-17") exploration well has commenced drilling. The M-17 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which Cub has a 30% ownership interest through its 30% shareholding of KUBGas Holdings Limited.
The Company also updates its operations on the Rusko-Komarovsky-22 ("RK-22") well. The RK-22 well is operated by Cub and the Company has a 100% working interest in the well.
The M-17 well will be drilled as a vertical well with a planned total depth ("TD") of 3,450 metres. The M-17 well is an appraisal well and will be drilled within the same structural closure as the M-16 discovery well, which is located approximately 1 kilometre to the southeast. The well will appraise the productive S6 sandstone currently producing in the M-16 well, and also in the O-15 well, where it is producing from a separate structure within the Olgovskoye field. Additionally, the M-17 will target the S5 limestone also encountered in the M-16 well. The well is expected to take approximately 85 days to reach total depth.
In 2014, the Company plans further appraisal and development of the M-16 well's discoveries in the Serpukhovian zone with the planned M-15 and M-18 wells. The S5, S6 and S13 formations will be targeted with the drilling of the deep M-15 well and the S5 and S6 formations further targeted in the M-18 well. The M-15 well will be located approximately 1 kilometre southeast of the M-16 and the M-18 well will be located approximately 2 kilometres southeast of M-16 location.
The Company is preparing to log the RK-22 well in the Middle Miocene Sarmatian L series and D1 through D3 series of sands. If logging indicates commercial amounts of natural gas in the L and D series sands, Cub expects to revise the planned TD of the well to 1,125 metres with results of completion operations expected prior to year-end 2013.
Notes to Editor:
The Makeevskoye-16 ("M-16") is the deepest well drilled on the Makeevskoye Licence to date. M-16 was drilled to a TD of 4,300 metres in the third and fourth quarters of 2012 and subsequently tested gas from the S6 zone at a maximum rate of 4.3 MMcf/d (1.3 MMcf/d net to Cub's 30% interest). Based on petrophysical analysis of the M-16 well's open-hole logs, the S5 appears to be hydrocarbon charged with 6 metres of gas pay. The M-16 well was tied-in for commercial production in June 2013 and current production from the S5 zone is more than 3.4 MMcf/d (more than 1.0 MMcf/d net to Cub's 30% interest).
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 the Black Sea region. 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: www.cubenergyinc.com
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.
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