Carcetti Capital Corp V.CART.H

Chen's Update

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I had a good discussion with CUB Energy Inc. (KUB.V) new COO Kerry Kendrick and CFO Patrick McGrath. They are working hard to finish the new nitrogen removal unit so their western field can come back online. Attached are some picture I took when I visited them in Houston last week. SEP-PRO is the contractor that they are using, who built the world largest nitrogen removal unit. They are very confident about their products and are guaranteeing them. The unit expect to be finished by the end of March and the Ukraine back online by the end of May. The money was put up by the new COO as personal loan. It shows how confident they are with the new unit.

https://www.chenpicks.com/chenvisitcubenergyhouston.html

The plan is the to the western field back online first. Then they will start drilling the new JV “U” field in Q3-Q4. 3 well program paid by their partner and they hope to have huge jump in production by the end of this year. In the east, they have found very exciting targets. However, they want to go slow and make sure the new drilling team is well trained to handle the challenges first.

I also discussed about the new VLE Turkey discovery and the potential deep gas in Ukraine. I was told they are excited about it too. In the western RK field for example, they drilled RK-1 to 3500 meter deep. (The Previous well that VLE drilled that attracted Statoil investment was drilled to ~3000 meter). They found good gas and condensate. However, they was not looking for deep gas before. Now they realize the potential and will look into it carefully when the RK field is back online later this year. There are also other new prospects that they are looking at in light of the new VLE discover. Remember the deep well royalty is cut to 6% half of the regular 12% new royalty. That will make it very attractive to find gas in Ukraine, even much better than Turkey!