Cub Energy Inc. Announces Ukraine Natural Gas Royalty Rate Reduced to 12% for New Wells
HOUSTON, TEXAS--(Marketwired - Jan. 3, 2018) - Cub Energy Inc. ("Cub" or the
"Company") (TSX VENTURE:KUB) comments on the newly enacted law reducing natural gas royalties
on new wells drilled in Ukraine.
On December 30, 2017, Ukraine President Petro Poroshenko signed a new law reducing the natural gas royalty rate on all new
wells drilled after January 1, 2018 from 29% to 12%. The law states that Parliament cannot change this law for a minimum of five
years, being January 1, 2023, at which time Parliament may leave the law in place or may amend the royalty rate.
Mikhail Afendikov, Chairman and CEO of Cub said: "The Ukraine parliament followed through on their commitment to encourage
domestic production of natural gas. The reduced royalty rate of 12% coupled with an 18% corporate tax rate and high natural gas
price environment provides renewed incentive to invest in growing the country's natural gas resources."
About Cub Energy Inc.
Cub Energy Inc. (TSX VENTURE:KUB) is an 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 increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas
assets within a high pricing environment.
For further information please contact us or visit our website: www.cubenergyinc.com.
Reader Advisory
Except for statements of historical fact, this news release contains certain "forward-looking information" within the
meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Cub believes that the expectations reflected in the forward-looking information are
reasonable; however there can be no assurance those expectations will prove to be correct. We cannot guarantee future results,
performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in
whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause
the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general
economic conditions in Ukraine and globally; political unrest and security concerns in Ukraine; industry conditions, including
fluctuations in the prices of natural gas and foreign currency; governmental regulation of the natural gas industry, including
environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be
shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required;
competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the
need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural
gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves,
undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical,
drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas
industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are
cautioned that this list of risk factors should not be construed as exhaustive.
This cautionary statement expressly qualifies the forward-looking information contained in this news release. We
undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in
our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue
reliance on forward-looking information.
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Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.