The RK-21 well location was identified by 3-D seismic acquired by Cub in 2013 and is the second well drilled by Cub on the RK licence. The RK-21 spud in mid-March 2014 and multiple potential gas bearing zones were encountered in the targeted middle Miocene Dorobratovskaya and Badenian sands locally referred to as the D-1 through D-5 and B-1 through B-5 sands. The D-3 sands were perforated over a four-metre interval between 1,111 metres and 1,114 metres then subsequently flow tested through various choke sizes. The well achieved a maximum stabilised natural gas flow rate of 2.6 MMcf/d through a 12-millimetre choke with a flowing tubing pressure of 545 pound-force per square inch (“psi”) and a shut-in casing pressure of 672 psi.
Cub continues to grow production. However with the conflict in Ukraine causing uncertainty in investors minds I do not anticipate the stock doing anything until things calm down. Investors hate uncertainty. Nevertheless, I continue to like this stock long term and for the more risk averse accumulating at these prices could turn out very well when the situation calms down in Ukraine. Cub Energy is my 2014 stock of the year pick.