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    Cub Energy Announces 2021 Yearend Results

    May 13, 2022 - ENP Newswire


      Houston - Cub Energy Inc. ('Cub' or the 'Company') (TSX-V: KUB), a Ukraine-focused energy company, announced today its audited financial and operating results for the year ended December 31, 2021.

      All dollar amounts are expressed in United States Dollars unless otherwise noted.

      The audited financials includes results from KUB Holdings Limited ('KUB Holdings') and its 100% owned operating Ukraine subsidiary, KUB-Gas LLC ('KUBGas'), which Cub had a 35% equity ownership interest and Tysagaz LLC ('Tysagaz'), Cub's 100% owned subsidiary. Patrick McGrath, CEO of Cub said: 'We are pleased to report net income of $8,259,000 or $0.03 per share during the year ended December 31, 2021. The 2021 financial results were positively impacted by $3,528,000 in profits generated by our gas trading and a $6,616,000 reversal of impairment on the value of KUB Holdings as the recoverable amount exceeded its carrying amount based on the negotiated sales price. The Company sold its 35% equity interest in KUB Holdings on February 2, 2022 for cash consideration of $2,600,000 and the settlement of debt. Cub also divested its 50% equity stake in CNG Holdings on December 21, 2021 and received EUR600,000 cash proceeds. The asset divestures deleveraged Cub's balance sheet and eliminated its exposure to eastern Ukraine. Cub ended 2021 with working capital of $8,128,000. Cub continues to focus on its 100% owned assets and new opportunities.'

      Operational Highlights

      On September 7, 2021, the Company announced it had entered into a letter agreement to sell its 35% interest in KUB Holdings for a cash payment of $2,600,000 and settlement of debt. On February 2, 2022, the Company closed the transaction. The Company settled approximately $8,300,000 in debt via repayment and simultaneously received $7,933,000 back in dividends with the difference being withholding taxes. These debts and dividends were settled during the year ended December 31, 2021 and the three months ended March 31, 2022.On December 21, 2021, the Company closed its sale of its 50% interest in CNG Holdings Netherland B. V. ('CNG Holdings'), which indirectly owns the Uzhgorod licence in western Ukraine. In consideration, the Company received EUR800,000 for its 50% interest in CNG Holdings including EUR600,000 in cash received on closing and EUR200,000 is a contingent payment on certain future events including a commercial discovery. Achieved average natural gas price of $9.60/Mcf and condensate price of $69.23/bbl during the year ended December 31, 2021 as compared to $3.79/Mcf and $41.07/bbl for the comparative 2020 year. The increase in commodity prices is due, in large part, to the lessening global impacts of COVID-19 and geopolitical events. Production averaged 537 boe/d (97% weighted to natural gas and the remaining to condensate) for the year ended December 31, 2021 as compared to 619 boe/d for the comparative 2020 year. The power business generated 5,592 megawatts an hour ('MWh') from the Jenbacher power units in Western Ukraine for the period of commencement in mid May 2021 to September 18, 2021 at an average price of $71/MWh. Due to the recent material increase in natural gas prices and no parallel increase in power prices, the Company temporarily suspended the power business as of September 18, 2021 and increased the sale of natural gas at the RK field as this strategy is more profitable. The Company will continue to monitor the prices of both commodities and utilize whichever one produces the better return for shareholders.


      Tel: 888.952.4446


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