Kubgas stake is sold
Cub Energy closes $10.6M (U.S.) sale of Kubgas stake
2022-02-02 12:19 ET - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES CLOSING OF SALE OF 35% INTEREST IN KUBGAS
Cub Energy Inc. has closed the sale of its 35-per-cent interest in Kubgas Holdings Ltd. The sale was for a deemed consideration of approximately $10.9-million (U.S.). The consideration comprised a cash payment of $2.6-million (U.S.) and the settlement of $8.3-million (U.S.) in debt. The $8.3-million (U.S.) in debt was settled in full through the repayment of debt and the simultaneous issuance of $7.9-million (U.S.) in dividends to the company with the difference being the applicable withholding taxes. The company continued gas trading of its 35-per-cent interest in Kubgas through to Nov. 15, 2021.
Patrick McGrath, chief executive officer of Cub, said: "The sale of the company's eastern Ukraine asset essentially derisks the company's eastern Ukraine exposure and eliminates the majority of Cub's debt. The company is now focused on its 100-per-cent-owned western Ukraine assets and will continue to review new opportunities."
About Cub Energy Inc.
Cub Energy is a power generation and upstream oil and gas company with a proven 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 build a portfolio of assets within an advantaged commodity price environment.
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