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.

14:10 / 18 November 2020

Upcoming events
08:00 / 26 September, 2019
ODESA OFFSHORE CONFERENCE-2019 Ukraine has every chance to resume the work of the most promising oil and gas region, the Southern oil&gas fields. The untapped deposits of oil and gas are located both onshore and subsea. Four companies have already poised to conclude Production Sharing Agreements with Ukraine, whilst bidding for the Dolphin oil&gas fields on Black Sea shelf. The Odesa Offshore Conference (OOC2019) will serve as a venue for Ukrainian and international bidders to meet with local and international drilling, oilfield service and equipment manufacturers to kick-off emerging subsea and onshore projects in Ukraine.
12:00 / 13 June, 2019
08:00 / 23 May, 2019
Carpathian Oil&Gas Conference-2019 The development of oil&gas industry, introduction and implementation of new E&P technologies, stimulation, workovers &recovery of oil&gas wells will be among upstream focal points of the FIRST DAY of COGC2019 - 23 May. The SECOND DAY of Conference will be devoted to midstream, downstream, and trade in hydrocarbons, to spotlight the nowadays dynamics and robust changes in the Ukrainian oil&gas market. The Ukrainian Gas Market day of 24 May 2019 will become a marketplace venue for natural gas traders and natural gas transmission & distribution companies to meet and discuss prospective deals in the UAH 200 billion natural gas market of Ukraine.
Carpathian Oil&Gas Conference-2019
All events