Energy loses $533,000 (U.S.) in Q1
2022-05-30 17:09 ET - News Release
Mr. Patrick McGrath reports
CUB ENERGY ANNOUNCES FIRST QUARTER 2022 RESULTS
Cub Energy Inc. has released its unaudited financial and operating results for the three months ended March 31, 2022. All dollar amounts are expressed in U.S. dollars unless otherwise noted.
Patrick McGrath, chief executive officer of Cub, said: "Cub finished the quarter ended March 31, 2022, with $8,916,000 cash on hand and working capital of $7,593,000. This was a result of the corporate strategy to divest several of its Ukraine oil and gas assets, including the divesture of its eastern Ukraine assets, which transaction closed on Feb. 2, 2022. Cub is looking at alternatives for its current cash, including, but not limited to, a cash dividend or investing in new opportunities."
Operational highlights:
- On Feb. 2, 2022, the company closed the sale of its 35-per-cent interest in Kub Holdings Ltd. and received a cash payment of $2.6-million. In conjunction with closing, the company received the final cash dividend of $2,046,000 and repaid the final loan balance to a subsidiary of Kub Holdings in the amount of $2,481,000 as part of the final debt settlement between the parties.
- The company achieved an average natural gas price of $20.61 per thousand cubic feet during the three months ended March 31, 2022, as compared with $5.90 per thousand cubic feet and $67.86 per barrel for the comparative 2021 quarter. Regional pricing materially improved in Ukraine period over period.
- Production averaged 35 barrels of oil equivalent per day for the three months ended March 31, 2022, as compared to 555 barrels of oil equivalent per day for the comparative 2021 period. Production decreased due to the sale of the company's 35-per-cent equity investment in Kub Holdings.
Financial highlights:
- The company reported a net loss of $533,000, or nil per share, during the three months ended March 31, 2022, as compared with net income of $263,000, or nil per share, during the comparative 2021 quarter. The company's revenues and income were materially impacted in 2022 by the sale of Kub Holdings, which was the primary contributor to the financial performance of the company historically.
- Netbacks of $71.85 per barrel of oil equivalent or $11.98 per thousand cubic feet equivalent were achieved for the three months ended March 31, 2022, as compared with netback of $17.31 per barrel of oil equivalent or $2.89 per thousand cubic feet equivalent for the comparative 2021 period.
Supporting documents
Cub's complete interim reporting package, including the unaudited condensed consolidated financial statements and associated management discussion and analysis, have been filed on SEDAR and has been posted on the company's website.
About Cub Energy Inc.
Cub Energy is a power and upstream oil and gas company, with a proven record of exploration and production cost-efficiency. 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 assets within a high commodity price environment.
We seek Safe Harbor.
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