Cub Energy announces that its wholly-owned subsidiary, Tysagaz LLC, has been granted a new production licence with additional acreage in western Ukraine. The new Stanivske production licence covers approximately 31,000 acres, which is a 41% increase from the original exploration licence which was 22,000 acres.
The expanded Stanivske licence was awarded on December 23, 2016, by way of a Special Permit by the State Service of Geology and Mineral Resources of Ukraine, authorising full industrial production from the Stanivske licence for a 20-year term, during which the Company will be allowed to conduct both exploration and production activities. The new production licence replaces the previously issued five-year Special Permit for exploration, which expired on December 25, 2015 but not before the Company applied for the production licence.
A 45 square kilometre 3D seismic program was acquired by the Company in 2013 on the original Stanivske exploration licence. The geological and geophysical studies of the seismic and previously drilled wells, leads the technical team to believe the licence could hold commercial quantities of hydrocarbons warranting further exploration drilling.
Gas was discovered on the Stanivske licence by a prior operator in 1990 with the drilling of the Yab-2 well. There is currently no production nor any reserves associated with this field. To fund the exploration and development on this production licence, the Company is exploring its alternatives, including potential joint venture partners.
Mikhail Afendikov, Chief Executive Officer of Cub said, “During the last two years, the Company’s focus has been to acquire key acreage and convert certain exploration licences to production licences. This has resulted in three new production licences, being the Stanivske and Uzhgorod production licences in Western Ukraine granted in 2016 (WI 100%) and the West Olgovskoye (WI 35%) production licence in Eastern Ukraine granted in 2015. Cub’s total acreage in Ukraine (east and west combined) is approximately 311,000 gross acres (142,000 net acres).”
About Cub Energy Inc.
Cub Energy Inc. is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. The Company’s strategy is to implement western technology and capital, combined with local expertise and ownership, to increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas assets within a high pricing environment.