Sunday, July 13, 2014
Cub Energy delivers second quarter operations report
Average production for the second quarter was 1,868 barrels of oil equivalent per day ("boe/d") (including Cub's WI in KUB-Gas), up from 1,857 boe/d in the first quarter. This is a 25% increase over the second quarter of 2013 average production of 1,490 boe/d. The second quarter exit rate was 2,154 boe/d, representing a 10% increase from 1,952 boe/d exit rate in the first quarter. The exit rate increased from the contribution of the M-17 and RK-21 wells, both of which started production late in the second quarter 2014. Noteworthy is the fact that KUB-Gas has reached record production with average rates for July to date reaching 35 million cubic feet per day ("MMcf/d") (10.5 MMcf/d Cub WI). This is a 15% increase above 2013 production exit rates. The estimated average prices received in Ukraine during the quarter increased to $10.23/thousand cubic feet ("Mcf") and $79.86/barrel ("bbl").
The compnay continues to execute and increase production. It has had to suspend some operations in eastern Ukraine until the security situation returns to normal as some of their contractors refused to work as it was deemed to dangerous. Nevertheless operations and drilling continue in western Ukraine continue as planned. Cub Energy is the 2014 stock of the year.