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Cub Energy announces well test results

2/1/2013 3:29:06 PM | Stockhouse Editorial

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The well is expected to be on production in the third quarter of 2013.

Cub Energy Inc. (TSX: V.KUB, Stock Forum) said it has discovered commercial volumes of natural gas in the Krutogorovskoye-7 exploration well in Ukraine.

The K-7 well, located near the city of Lugansk, is operated by KUB-Gas, a partially-owned subsidiary in which Cub has a 30% ownership interest.

According to the Cub Energy press release, wireline logging of the well indicated up to five potential gas zones in the Bashkirian and Serpukhovian sands between depths of approximately 2,390 metres and 2,760 metres.

A 10 metre section of the Bashkirian B12 zone, from a depth of 2,395 to 2,398 metres and from 2,400 to 2,407 metres, was selected for testing.

The well was flow tested for a period of 14 hours using various choke sizes and achieved a maximum rate of 5.914 million cubic feet per day through a nine millimeter choke.

The well, which has now been shut-in to observe pressures, is expected to be on production in the third quarter of 2013 after the construction of 1.7 kilometres of new pipeline.

Cub Energy is an upstream oil and gas company with a focus on Ukraine.

On Friday, Cub Energy was up 12.12% and was trading at $0.37 a share. The company has a market cap of $89.7 million, based on 242.3 million shares outstanding. The 52-week high and low was $0.49 and $0.205 respectively.

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