KUB making more acquisitions Seems to be KUB trying to grow quickly...
CUB ENERGY INC. COMPLETES STRATEGIC UKRAINE ACQUISITION
Cub Energy Inc. has completed the acquisition of a private Ukrainian oil and gas exploration company initially announced on March 8, 2013. The acquisition is subject to an escrow that will be lifted on routine delivery of certain documents, expected to occur within days.
The assets of the acquired company consist of approximately 70,000 gross acres of undeveloped land and have the net effect of increasing Cub's aggregate licence position in Ukraine to approximately 244,000 gross (180,000 net) acres.
Mikhail Afendikov, chairman and chief executive officer of Cub, commented: "We are excited about the acquisition of these licences and believe they add significant quality acreage to our existing portfolio. These three blocks give us a large increase in drilling prospects, excellent resource exposure and further consolidates our holdings in this key area of Ukrainian gas production. We will begin our 3-D seismic program on these licences by the early third quarter of this year."
As consideration for the acquisition, Cub issued 55,555,555 common shares to the private company's two shareholders. One now owns 44,444,444 common shares of Cub, representing 14.92 per cent of Cub's outstanding common shares.
Acquisition highlights:
- Three 100-per-cent working interest licences containing approximately 70,000 acres of undeveloped land that are on trend and contiguous with Cub's core producing areas in eastern Ukraine;
- Close proximity of the acquired licences to Cub's existing acreage facilitates easy access to existing infrastructure and related services;
- RPS Energy reserves evaluators estimates on block gross 2C contingent gas resources of 14.18 billion standard cubic feet and on block gross best estimate prospective resources of 9.65 billion standard cubic feet;
- Management expects the resource numbers to increase upon the completion of the 3-D seismic program to be completed in third quarter 2013.