HOUSTON, TX / ACCESSWIRE / March 31, 2021 / Cub Power Inc. (“Lion cub“or the”Firm“) (TSXV: KUB) pronounces the outcomes of its impartial reserve assessments as at December 31, 2020 on its oil and fuel properties in Ukraine. The valuation was carried out on the corporate’s 35% working curiosity in KUB-Gasoline LLC (“KUB-Gasoline”) and was performed by Ryder Scott Petroleum Consultants (“Ryder scott“), an impartial certified reserves evaluator and auditor (“Reserves report “).
The 100% owned RK area, owned by the 100% subsidiary of Tysagaz LLC, was not topic to a reserve report in 2020 as the corporate is awaiting the beginning of economic manufacturing of the ability era mission that can use fuel on the RK area. The corporate plans to reassess the reserve class of the RK area in 2021.
Patrick McGrath, Interim CEO of Cub, mentioned: “The pure fuel value assumptions within the 2020 reserves report had been about 15% to twenty% decrease than the World Financial institution forecast for a similar interval, which had a unfavorable impression on the worth of reserve outcomes. of 2020. Nonetheless, to date in 2021, the corporate has seen the worth of pure fuel in Ukraine rebound to $ 5 / Mcf-$ 6 / Mcf. Moreover, the corporate is hoping to see its RK area reassessed right into a reserve class in 2021 when the RK area {hardware} reboots.. ”
All assessments had been ready utilizing the rules outlined within the Canadian Oil and Gasoline Valuation Handbook (“COGE Handbook“) and adjust to Nationwide Instrument 51-101 of the Canadian Securities Directors – Oil and Gasoline Disclosure Requirements (“NI 51-101Cub’s NI 51-101 disclosure for the fiscal yr ended December 31, 2020 is in its Kind 51-101 F1 filed on SEDAR www.sedar.com and posted on the corporate’s web site at www.cubenergyinc.com. All greenback quantities are expressed in US {dollars}, except in any other case specified. The highlights are under:
Abstract of the corporate’s complete reserves
The next tables summarize the whole reserves of the corporate and the related internet current values discounted at 10% earlier thanon December 31, 2020 utilizing forecast costs.
Complete internet volumes of firm reserves (1) (2)
Reserve class
Pure fuel
(MMcf)
NGL
(Mbbls)
Mboe
MMcfe
Develop manufacturing
1,090
6
188
1,126
Developed
not produced
760
–
127
760
Complete confirmed (1P)
1,850
6
315
1,886
Complete confirmed extra possible (2P)
2,610
9
451
2,664
Notes:
See “Oil and Gasoline Equivalents” under
Internet reserves for the pursuits of the Firm after deduction of royalties
Internet current worth with a ten% pre-tax low cost (“VAN-10”) (1) (2) (3)
Reserve class
NPV-10 (in tens of millions of US {dollars})
Confirmed Developed Manufacturing (PDP)
$ 2.2
Complete confirmed (1P)
$ 2.9
Complete confirmed extra possible (2P)
$ 4.3
Notes:
The forecast costs used within the current worth calculations of future internet revenue for the yr ended December 31, 2020 are primarily based on the forecast value reserves report for Japanese Ukraine belongings.
The overall confirmed NPV-10 worth of estimated future internet revenue is just not meant to symbolize the present market worth of estimated oil and pure fuel reserves. The NPV-10 of possible reserves represents the current worth of the estimated future revenues to be generated from the manufacturing of possible reserves, calculated internet of the estimated working bills of leases, manufacturing taxes and future improvement prices, utilizing the prices on the date of the estimate and utilizing the estimate for future fuel costs, with out taking into consideration non-real property bills akin to common and administrative prices, debt service and depreciation, depletion and amortization, or future taxes, and discounted at an annual low cost fee of 10%. Relating to the pre-tax NPV-10 quantities for possible reserves, they don’t declare to current the honest worth of our possible reserves.
Oil and fuel equivalents
A barrel of oil equal (“boe”) or pure fuel equal models (“Mcfe”) is calculated utilizing the conversion issue of 6 Mcf (one thousand cubic toes) of pure fuel equal to 1 barrel of oil. A boe conversion fee of 6 Mcf: 1 bbl (barrel) or a Mcfe conversion of 1bbl: 6 Mcf relies on an vitality equivalence conversion technique primarily relevant on the burner tip and doesn’t symbolize a worth equivalence at wellhead and isn’t primarily based on vitality content material or present costs. Whereas the boe ratio is helpful for comparative measurements, it doesn’t precisely replicate particular person product values and might be deceptive, particularly if utilized in isolation. Additionally, because the worth ratio, primarily based on the present value of crude oil to pure fuel, may be very totally different from the vitality equivalency ratio of 6: 1, utilizing a conversion ratio of 6 : 1 could also be deceptive as a sign of worth. The knowledge contained on this press launch is ready in accordance with NI 51-101 requirements.
Reserve classifications
The “gross reserves” are the share of the direct pursuits (working or non-operating) of the Firm earlier than deduction of royalties and with out together with the pursuits of royalties of the Firm. “Internet reserves” are the corporate’s share within the direct participation (operational or non-operational) after deduction of royalty obligations, plus the corporate’s royalty rights within the reserves.
Outlined phrases
“Reserves” are the estimated remaining portions of petroleum and pure fuel and associated substances which are anticipated to be commercially recoverable by the appliance of improvement initiatives to identified accumulations from a given date beneath outlined circumstances. Reserves should additionally meet 4 standards: they have to be found, recoverable, business and remaining (as of the valuation date) relying on the event mission (s) utilized.
Reserves are additional labeled in response to the extent of certainty related to the estimates and could also be sub-classified in response to the maturity of the mission and / or characterised by the state of improvement and manufacturing.
Confirmed reserves are these reserves which might be estimated with a excessive diploma of certainty that they’re recoverable. There’s a 90% chance that the remaining portions really recovered will exceed the estimated confirmed reserves.
“Possible” reserves are further reserves whose restoration is much less sure than confirmed reserves. Additionally it is possible that the remaining precise recovered quantities will likely be higher or lower than the sum of the estimated confirmed and possible reserves.
About Cub Power Inc.
Cub Power Inc. (TSX-V: KUB) is an upstream vitality and oil and fuel firm with a confirmed observe report for exploration and cost-of-production profitability in Ukraine. The corporate’s technique is to harness western know-how and capital, mixed with native experience and possession, to extend the worth of its undeveloped land base, creating and additional growing a portfolio of belongings. in an atmosphere of excessive costs.
Patrick mcgrath Appearing Basic Supervisor (713) 577-1948 [email protected]
Discover to readers
Apart from statements of historic reality, this press launch comprises sure “forward-looking data” inside the which means of relevant securities legal guidelines. Ahead-looking data is usually characterised by phrases akin to “plan”, “count on”, “plan”, “intend”, “imagine”, “anticipate”, “estimate” and different related phrases, or statements that sure occasions or circumstances “could” or “will” happen. Cub believes that the expectations mirrored within the forward-looking data are affordable; nevertheless, there might be no assurance that these expectations will show to be appropriate. We can’t assure future outcomes, efficiency or achievements. Accordingly, there isn’t any indication that the precise outcomes obtained would be the similar, in complete or partially, as these indicated within the forward-looking data.
Ahead-looking data relies on the opinions and estimates of administration as of the date the statements are made, and is topic to quite a lot of dangers and uncertainties and different elements that might trigger occasions or precise outcomes differ considerably from these anticipated sooner or later. -the seek for data. A number of the dangers and different elements that might trigger outcomes to vary materially from these expressed within the forward-looking data embrace, however will not be restricted to: common financial circumstances in Ukraine; political unrest and safety points in Ukraine; business circumstances, together with fluctuations in pure fuel costs; authorities regulation of the pure fuel business, together with environmental regulation; unexpected working occasions or efficiency that will cut back manufacturing or trigger manufacturing to cease or delay; failure to acquire consents and approvals from business companions and different third events, if and when needed; competitors and / or lack of ability to retain drilling rigs and different companies; the provision of capital on acceptable phrases; the necessity to get hold of the required approvals from regulatory authorities; volatility of inventory markets; the volatility of pure fuel market costs; duties inherent in pure fuel operations; competitors for, amongst different issues, capital, reserve acquisitions, undeveloped land, expert personnel and provides; incorrect assessments of the worth of acquisitions; geological, technical, drilling, processing and transportation points; modifications in tax legal guidelines and incentive packages associated to the pure fuel business; failure to understand the anticipated advantages of acquisitions and tendencies; and different elements. Readers are cautioned that this record of danger elements shouldn’t be construed as exhaustive.
This cautionary assertion expressly qualifies the forward-looking data contained on this press launch. We assume no obligation to replace forward-looking data to adapt it to precise outcomes or to modifications in our expectations, besides as in any other case supplied by relevant securities legal guidelines. Readers are cautioned to not place undue reliance on forward-looking data.
Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch.
