Production at 35 boepd , the same as Q3...
Temporary Royalty increase effective March 22 for gas priced above $11.33 US from 29% to 65% , until emergency orders are lifted....below $11.33 remains the same but going much lower to 14.5 % below $4.25 US
Looks like we got almost the full quarter one in at the higher rates
RK reserve update soon, possibly this week..
HOUSTON, TX and CALGARY, AB / ACCESSWIRE / March 28, 2022 / Cub Energy Inc. ("Cub" or the "Company") (TSX-V:KUB) comments on the newly enacted law concerning gas royalty rates in Ukraine.
The Ukraine Parliament passed a new law increasing the royalties on natural gas production. The law was published on March 22, 2022 and entails a partially sliding scale royalty rate. The new royalty rates are retroactive to March 1, 2022 and shall remain effective throughout the military and/or emergency state. The royalty rates are applicable to the Company's RK Field in Western Ukraine and are as follows:
| Price per Mcf
($USD) | Previous
royalty rate | New
royalty rate |
| | | |
| Below $4.25/Mcf | 29.0% | 14.5% |
| Between $4.25/Mcf and $11.33/Mcf | 29.0% | 29.0%(1) |
| Above $11.33/Mcf | 29.0% | 65.0%(2) |
- The royalty rate of 29% is applicable on the entire sales price. There is no sliding scale.
- The royalty rate is a sliding scale where its 29% on the sale price up to $11.33/Mcf and 65% for the sales price above $11.33/Mcf.
The Company is closely monitoring developments in Ukraine following the unprovoked invasion of Russian armed forces into the territory of Ukraine and the implementation of martial law. The Company is continuing to assess developments locally and will prioritize the safety of its workforce. At the present time, the Company's RK Field is operating and producing at a rate of 0.2 million cubic feet per day ("Mcf/d"). In light of the material royalty increase and unpredictable local market for natural gas, the Company is evaluating what impact this will have on the RK Field in the near term. The RK Field is located in Western Ukraine and near the Hungarian/Slovakian border. The company disposed of its Eastern Ukraine assets effective February 2, 2022. The situation in Ukraine remains volatile and unpredictable.
About Cub Energy Inc.
Cub Energy Inc. (TSX-V: KUB) is a power generation and 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 build a portfolio of assets within an advantaged commodity price environment. For further information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath
Chief Executive Officer
(832) 499-6009
patrick.mcgrath@cubenergyinc.com