Cub Energy to sell interest in CNG Holdings
2021-04-30 08:57 MT - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES SALE OF CNG INTEREST
Cub Energy Inc. has entered into a share purchase agreement (SPA) to sell its 50-per-cent interest in CNG Holdings Netherlands BV, which in turn owns CNG LLC (Ukraine LLC), the 100-per-cent owner of the Uzghorod licence in western Ukraine.
Cub is to receive consideration of 800,000 euros ($970,000 (U.S.)) for its 50-per-cent interest in CNG. The consideration consists of 600,000 euros ($728,000 (U.S.)) in cash on closing and 200,000 euros ($242,000 (U.S.)) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval. The company expects the closing in approximately one to two months' time and will use the cash for general working capital.
Patrick McGrath, Cub's interim chief executive officer, said, "Cub decided to divest its interest in CNG as we view it as a non-core asset that will likely be capital intensive in the near future as it is at the exploration stage."
About Cub Energy Inc.
Cub Energy is a power and upstream oil and gas company. 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 power and oil and gas assets within a high pricing environment.
We seek Safe Harbor.