News // Oil and gas worldwide
Cub Energy Inc. Partners With NAFTA International to Jointly Develop Uzhgorod Field in Western Ukraine
11 July 2016 , 12:03Neftegaz.RU534
Cub Energy Inc. announces that it has entered into a share purchase agreement and Shareholders'Agreement with NAFTA INTERNATIONAL B.V., whereby NAFTA earns a 50% interest in the Company's newly formed subsidiary, CNG Holdings Netherlands B.V., which, in turn, owns CNG LLC (Ukraine LLC), 100% owner of the Uzhgorod production licence in western Ukraine.
Pursuant to the terms of the SPA, NAFTA is to:
1. Pay Cub EUR1.5 million (US $1.7 million) upon transfer of the 50% shares ("Closing"). The Closing occurred earlier today and the transfer of funds is expected to be completed by Monday, July 11, 2016;
Mikhail Afendikov, Cub's Chief Executive Officer, said, «We look forward to our new partnership with NAFTA and will leverage their oil and gas experience on the adjoining Slovakian field with our experience in the nearby producing Rusko-Komarivske ("RK") field in western Ukraine. Together we plan to continue the exploration and development of the Uzhgorod licence. We hope to commence the 3D survey later in 2016.»
About the Uzhgorod Licence
As disclosed in the Company's press release dated March 14, 2016, the Company was awarded the 20-year Uzhgorod production licence with approximately 75,000 acres on March 11, 2016. The new expanded Uzhgorod licence is on trend with the discoveries in the Republic of Slovakia, which adjoins the licence on the west and the Company's 100%-owned RK field in close proximity on the east. Approximately 35 line kilometres of 2D seismic data was acquired in 2013 on the original Uzhgorod exploration licence. The data has been processed and reviewed with several potential target locations identified.
NAFTA INTERNATIONAL B.V. is a company 100% owned by NAFTA a.s. NAFTA a.s., a Slovakian-based company with extensive experience in natural gas storage and underground facility development and is the Slovak leader in exploration and production of hydrocarbons, including a producing field on the border of Slovakia and Ukraine. The storage capacity of natural gas underground facilities operated by NAFTA currently stands at 2.74 billion cubic metres.
Martin Bartošovič, NAFTA a.s.'s General Director said, «We are delighted to have reached this agreement with Cub. We believe that our 60 years know-how of Eastern Slovakia geology and Cub´s local presence in Ukraine will allow us together to unlock the potential of the Uzhorod license. We also believe that this project to be the first step in creation of NAFTA´s portfolio in Ukraine.»
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.
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