Where does Cub Energy (V.KUB) fit in all of this Ukraine energy market. Possibly it's a better bet than TSU or are they all suspect.
HOUSTON, TEXAS--(Marketwire - Sept. 3, 2012) - Cub Energy Inc. ("Cub", or the "Company") (TSX VENTURE:KUB), reports the Makeevskoye-20 ("M-20") well in Ukraine has tested gas at a rate of 5.3 million cubic feet per day ("MMcf/d"). The Company also provides an update on testing of the North Makeevskoye-1 ("NM-1") well and current operations. The Company's production and revenue is derived from nine licenses in Ukraine. Five licenses in Eastern Ukraine are owned and operated by KUB-Gas LLC ("KUB-Gas"), a subsidiary in which Cub has a 30% ownership interest, and four licenses in Western Ukraine in which Cub has a 100% ownership interest. M-20, NM-1 and M-16, are operated by KUB-Gas.
- M-20 well tests natural gas at a rate of 5.3 MMcf/d through a 10mm choke;
- NM-1 testing does not produce gas despite logs indicating gas-charged intervals. The Company is now evaluating stimulation options, including fracking;
- M-16 well drilling at 1,905 metres with a projected TD of 3,850 metres;
- August production at 1,246 boe/d.
The M-20 well was perforated in the R8 zone. Gas reached surface in one minute and flowed at a rate of 5.3 MMcf/d through a 10 mm choke. The Company expects to have the well tied in for production in the fourth quarter.
The M-20 well was drilled to a total depth ("TD") of 2,000 metres and cased to TD in early August. The primary objective of the well was to evaluate the potential of the R8 zone at a depth of approximately 1,450 metres and further develop the Makeevskoye R8 Pool. The R8 Pool was originally discovered by the Makeevskoye-19 ("M-19") in the second half of 2010. The pool was extended approximately 1 kilometre to the west by the Makeevskoye-21 ("M-21") well and now has been extended approximately 1 kilometre to the east by the M-20.
North Makeevskoya License
The NM-1 well, the initial exploration well on the North Makeevskoya License, reached a TD of 2,500 metres and was cased to TD in June 2012. Evaluation of both the wireline logs and information obtained during the drilling of the well indicates potential for hydrocarbon accumulation in both Bashkirian and Serpukhovian aged sediments. Two reservoir units are within a 70-metre thick limestone interval and another appears to be within a 30 metre thick sandstone. Testing of both the sandstone and the carbonate indicates that these reservoirs do not have sufficient permeability to produce without stimulation. The Company is reviewing stimulation options for the sandstone, including potential fracture stimulation.
The North Makeevskoya 3D seismic survey has thus far identified five additional prospects and interpretation is on going. Subject to permitting, the first of the additional structural prospects is expected to be evaluated by the drilling of the North Makeevskoya-2 ("NM-2") well near the end of 2012. NM-2 is located in the southern part of the North Makeevskoya License only 4 kilometres north of the Makeevskoye gas production facility.
The M-16 well has a projected TD of 3,850 metres. The Company commenced drilling in early August and estimated 90 days to reach TD. The M-16 well is currently drilling at a depth of 1,905 metres. The well is being drilled to evaluate a prospect with multiple potential Carboniferous reservoirs. The upper portion will be an appraisal well to evaluate Contingent Resources targeting a structure defined by 3D seismic. This structure, with stacked reservoir units in the Bashkirian and Upper Serpukhovian sections, has tested natural gas elsewhere within the Makeevskoye field. The deeper portion will be an exploration well crossing a fault to test a deep structure which will help evaluate the hydrocarbon potential of deeper formations in the Lower Serpukhovian and potentially in the deeper Visean sections. A discovery in these deeper sediments would open up new opportunities for reserve and production growth.
Cub's average production during the month of August from both the Eastern and Western gas wells is over 1,246 boe/d. Gas price for the month of August is US$11.75.
About CUB Energy Inc.
Cub Energy Inc. is a TSX Venture Exchange company focused on the exploration and development of oil and gas in Ukraine. The Company has offices in Houston, Texas, Toronto, Ontario and Kyiv, Ukraine. Cub has 110,000 net acres, in nine fields, 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. Cub shares are traded under the stock symbol KUB.