Thursday, March 24, 2016

Cub Energy reports end of year reserves

Link:

Cub Energy Inc. (“Cub” or the “Company”) (TSX-V: KUB) announces the results of its independent reserves evaluations as at December 31, 2015 on its oil and gas properties in Ukraine. The evaluation of Tysagaz properties (100% WI) was conducted by Ryder Scott Petroleum Consultants (“Ryder Scott”) and the evaluation of KUB-Gas properties (30% WI) was conducted by RPS Energy Canada Ltd. (“RPS”), both independent qualified reserves evaluators and auditors, in their respective reports (“Reserves Reports”

Proved developed producing (“PDP”) oil and natural gas reserves of 765 Mboe or 4,590 MMcfe with NPV-10 (as defined herein) of $16.73 million ($0.05 per share)

Proved (“1P”) oil and natural gas reserves of 1,995 Mboe or 11,970 MMcfe with NPV-10 of $40.52 million ($0.13 per share)


Proved and probable (“2P”) oil and natural gas reserves of 3,039 Mboe or 18,234 MMcfe with NPV-10 of $63.54 million ($0.20 per share) 

Whatever way one wants to look at it the company is undervalued. The current discount of course is attributable to the economic and political situation in Ukraine. The royalty regime was changed, by the government of Ukraine, back to 28% earlier this year. Now it will be incumbent on Cub management to increase production. If production is increased I am of the view the share price can increase. A double on this company from these levels is not out of the question by year end. 

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