NAFTA announces partnership with Cub Energy Inc. to develop Uzhgorod field in Western Ukraine

The purchase price for the 50% interest  is estimated on €1,5 million, with the additional costs on a 3D seismic survey, drilling and tie-in of the wells within the Uzhgorod license.

NAFTA a.s. continuously seeks international cooperation projects in the fields of exploration and production of hydrocarbons and underground gas storage. The closing of the agreement with Cub Energy Inc. is of great importance for NAFTA a.s., as it represents a significant milestone in its planned expansion on the foreign markets. The partnership on the Uzhgorod license provides opportunity for NAFTA a.s. to utilize its extensive experience in the exploration and production of gas fields in areas such as geology, reservoir engineering and drilling.

Martin Bartošovič, NAFTA a.s.’s General Director said, “We are delighted to have reached this agreement with Cub. We believe that our 60 years know-how of Eastern Slovakia geology and Cub´s local presence in Ukraine will allow us together to unlock the potential of the Uzhorod license. We also believe that this project to be the first step in creation of NAFTA´s portfolio in Ukraine.”

Mikhail Afendikov, Cub’s Chief Executive Officer, said, “We look forward to our new partnership with NAFTA and will leverage their oil and gas experience on the adjoining Slovakian field with our experience in the nearby producing Rusko-Komarivske (“RK”) field in western Ukraine. Together we plan to continue the exploration and development of the Uzhgorod licence. We hope to commence the 3D survey later in 2016.”

The Company Cub Energy Inc. was awarded the 20-year Uzhgorod production licence with approximately 300 km2 on March 11, 2016. The new expanded Uzhgorod licence is on trend with the discoveries in the Republic of Slovakia, which adjoins the licence on the west and the Company’s 100%-owned RK field in close proximity on the east. Approximately 35 line kilometres of 2D seismic data was acquired in 2013 on the original Uzhgorod exploration licence. The data has been processed and reviewed with several potential target locations identified.

Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. The Company’s strategy is to implement western technology and capital, combined with local expertise and ownership, to increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas assets within a high pricing environment.