Cub Energy announces that KUB-Gas (KUB-Gas), Cub's 35%-owned subsidiary which owns and operates the eastern Ukraine licenses, has commenced drilling of the Makeevskoye-23 (M-23) well.
The M-23 well is planned to a total depth of 2,550 metres with multiple objectives. The M-23 well will be funded through existing KUB-Gas cashflow.
Rusko-Komarovske ("RK") Field Update
Cub's 100% owned subsidiary, Tysagaz LLC ("Tysagaz"), recently located a used nitrogen rejection unit ("NRU") in the United Stated to be utilized on the RK Field in western Ukraine during the fourth quarter of 2016. Tysagaz is purchasing the NRU and it is being transported to Ukraine. If successfully installed and operated, the NRU should negate the need for the blending agreement and dependence on third parties.
Mikhail Afendikov, Chief Executive Officer of Cub said, "We are happy to announce the resumption of drilling in eastern Ukraine. KUB-Gas' resumption of active operations is a reflection of increased cashflow as a result of the reduced royalty from 55% to 29% effective January 1, 2016. We also believe we have found a long-term solution to RK Field and hope to resume production on the RK Field in western Ukraine in the fourth quarter."