Cub Energy Inc. (TSXV:KUB) announced that they have acquired a private Ukrainian oil and gas exploration company which will grant them access to approximately 70,000 gross acres of undeveloped land.
As quoted in the press release:
- Three 100% working interest licences containing approximately 70,000 acres of undeveloped land that are on trend and contiguous with Cub’s core producing areas in eastern Ukraine
- Licences are strategically situated in the producing fairway near the majority of Cub’s current production and cash flow and vastly increases prospective drilling inventory
- The recently drilled Krutogorovskoye-7 well, located approximately 15 km from the nearest acquired license, tested in excess of 5.9 MMcf/d of natural gas with an indicated condensate yield of 33 barrels per MMcf (see notes to editors)
- Close proximity of the acquired licences to Cub’s existing acreage facilitates access to existing infrastructure and related services
Cub’s Chairman and CEO, Mikhail Afendikov, said:
We are excited about the acquisition of these licences and believe they add significant quality acreage to our existing portfolio. These three blocks give us a large increase in drilling prospects, excellent resource exposure and further consolidates our holdings in this key area of Ukrainian gas production. This transaction is in line with our stated strategy of growing the Company though the acquisition of large undeveloped license areas contiguous with our current production. We thereby mitigate exploration risk, and develop our assets with the combination of seismic, western technology, modern completion practices and local expertise.