Carcetti Capital Profile
Cub Energy Inc., a junior oil and gas issuer, engages in the exploration and development of oil and gas in Ukraine.
The company is an independent oil and gas producer in Ukraine. The company has a primary land base in the Dnieper-Donets Basin, as well as in the under-developed Transcarpathian Basin.
As of December 31, 2019, the company had nine licenses with approximately 311,000 gross acres and approximately 142,000 net acres in Ukraine.
In the Dnieper-Donets Basin, the company is the 35% indirect owner of six licenses (five production licenses and one exploration license) totaling approximately 71,000 net acres.
In the Transcarpathian Basin, the company is the 100% owner and operator of two production licenses and 50% owner of another production license, totaling approximately 71,000 net acres.
The company’s strategy is to use western technology and local expertise to improve its proven undeveloped reserves and build a portfolio of low-risk development prospects in Ukraine to capitalize on regional gas prices.
Principal Oil and Gas Assets
Ukraine
As of December 31, 2019, the company held an interest in a total of nine oil and gas licenses in Ukraine. The company’s subsidiary, KUB-GAS LLC (Kub-Gas), holds permits for production of natural gas, condensate and oil at Makeevskoye, Olgovskoye, West Olgovskoye, Krutogorovskoye and a permit for production of natural gas and helium (depths approximately 1,000 metres) at Vergunskoye.
The company’s indirect wholly-owned subsidiary, Tysagaz LLC (Tysagaz), is the title holder to two 100%-owned production licenses in Ukraine, such as the Rusko-Komarivske and Stanivske gas fields. The Uzhgorod production license in western Ukraine's Transcarpathian Region, is owned by CNG LLC (CNG) (the company has 50% interest).
Kub-Gas Assets
As of December 31, 2019, the company indirectly held an effective 35% ownership interest in Kub-Gas through its wholly-owned subsidiary, Gastek LLC.
Kub-Gas, a private Ukrainian company, which owns gas production assets and certain well servicing assets, is a major private gas producer in Ukraine and sells gas domestically. The Kub-Gas assets are, among other things, the Kub-Gas Licenses, which consist of the 100% working interests in six license areas, such as Olgovskoye, West Olgovskoye (owned through Kub-Gas 100%-owned subsidiary, Kub-Gas Borova), Makeevskoye, Vergunskoye, Krutogorovskoye and the North Makeevskoye area in the Lugansk region of eastern Ukraine. The Kub-Gas Licenses are situated in the northeastern part of Ukraine in the Dnieper-Donets Basin. Kub-Gas also owns five gas processing facilities, a snubbing unit, two service rigs, inventory of spare parts, support vehicles, and land and buildings.
Tysagaz Assets
The company holds a 100% ownership interest in Tysagaz through its wholly-owned subsidiary, 3P International Energy Ltd. As of December 31, 2019, Tysagaz held two production licenses in Ukraine, such as the Rusko-Komarivske and Stanivske gas fields in western Ukraine's Transcarpathian Region.
CNG Assets
The company holds a 50% ownership interest in CNG through its 50% ownership in CNG Holdings Netherlands B.V. NAFTA International B.V. (NAFTA) owns the other 50% working interest. NAFTA is 100% owned by NAFTA a.s., a Slovakian- based company with experience in natural gas storage and underground facility development and is the Slovak leader in exploration and production of hydrocarbons, including a producing field (Ptruksha field) on the border of Slovakia and Ukraine.
CNG owns the Uzhgorod 20-year production license (converted from exploration to production license on March 11, 2016) covers 75,000 acres and is on trend with the discoveries in the Republic of Slovakia, which adjoins the license on the west.
The company, through its 35% indirect interest in Kub-Gas, owns five gas processing facilities, each of which is located on the Kub-Gas Licenses, with a total capacity of 98 million cubic feet per day (MMcf/d) of natural gas throughput per day and a network of flow lines totaling approximately 40 kilometres, to enable the production and sale of natural gas. Additionally, Kub-Gas wholly owns two service rigs, a snubbing unit, inventory of spare parts, support vehicles, and land and buildings. Kub-Gas’s facilities have a 68 MMcf/d throughput capacity for the Makeevskoye and Olgovskoye fields. The company, through Tysagaz, owns two gas processing facilities, one on the Rusko-Komarivske field and one on the Stanivske field.
