HOUSTON, TEXAS--(Marketwire - Dec 7, 2012) - Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, announces the Makeevskoye-16 ("M-16") exploration well in Ukraine has been cased to its total depth ("TD") of 4,300 metres after encountering multiple potential gas-bearing zones. The well is operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which Cub has a 30% ownership interest.
The M-16 exploration well reached its revised total depth of 4,300 metres on 28 November 2012 and has now been cased to TD. Completion and testing of the well will occur in the first quarter of 2013.
The well encountered multiple zones which appear to be gas-bearing based upon drilling information and interpretation of wireline logs. Potential gas zones were encountered in the Moscovian, Bashkirian and Serpukhovian sections of the well.
At 4,300 metres TD, the M-16 well targeting the Serpukhovian and Visean stratigraphic intervals is the deepest well drilled to date by the Company. The discovery of potential pay in these intervals, if supported by production tests, continue to support the Company''s belief that significant value yet remains to be found in the Olgovskoye and Makeevskoye areas.
Mikhail Afendikov, Chairman and Chief Executive of Cub Energy, commented:
"We are quite pleased with M-16''s preliminary results and are especially glad to see the potential pay zone in the deeper Serpukhovian interval. If proven to be productive by testing, it will open up a significant part of the O and M area to lower risk development drilling."
"This deeper potential, together with the shallower potential, if proven to be productive through testing will give us multiple development locations for future drilling."
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE:KUB) is a Ukraine-focused upstream oil and gas company with 110,000 net acres, in nine exploration and production licences, in the two major producing basins within Ukraine. The Company''s strategy is to use western technology and capital, combined with local expertise to create value in its undeveloped land base, building a portfolio of high margin producing oil and gas assets. The Company has offices in Houston, Toronto and Kyiv and trades in Toronto under the stock symbol KUB.
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.
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 the Ukraine and globally; industry conditions, including fluctuations in the prices of natural gas; 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 third 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.