Cub Energy reduced natural gas production by 27% in 9 months of 2020
Cub Energy Inc. a Ukraine-focused upstream oil and gas company, announced its unaudited financial and operating results for the interim 9 months 2020. This update includes results from KubGas LLC (“Kub-Gas”), which Cub has a 35% equity ownership interest, Tysagaz LLC, Cub’s 100%.
Achieved average natural gas price of $3.59/ Mcf and condensate price of $40.33/bbl during the nine months 2020 as compared to $5.85/Mcf and $48.43/bbl for 2019. Production averaged 638 boe/d (97% weighted to natural gas and the remaining to condensate) for the 9 months 2020 as compared to 873 boe/d for 2019.
In April 2020, the Company has signed a contract for the purchase of two Jenbacher gas power generation engines that should convert the natural gas produced from the RK field into power that can be sold in western Ukraine at local market rates. The two units were manufactured and delivered to the RK Field in late October 2020 to begin installation and commissioning. Each power generation unit will have the capacity to produce as much as 1.5 megawatts (“MW”) of power or 3 MW in total. Mikhail Afendikov, Chairman and CEO of Cub said: “We are pleased to report the two Jenbacher units have arrived on site on the RK field and currently undergoing the installation, commissioning and ultimately connecting to the power grid. The Company plans to have the units commercially operative in early 2021.” The Company reported a net loss of $2,274,000 or $0.01 per share during the 9 months 2020 as compared to net income of $260,000 or $0.00 per share during 2019.
The Company has implemented certain cost-cutting initiatives during the second and third quarters of 2020, including the layoff of eleven team members, salary and director fee reductions, the signing of office leases at lower rent levels and a general decrease in the use of external consultants.