Cub Energy resumes Ukraine drilling as security situation improves

Cub has spudded the Makeevskoye-22 (M-22) well through it 30 per cent owned subsidiary KUB-Gas LLC (KUB-Gas), which owns and operates the eastern Ukraine licences.

M-22 is located on the southwest side of the major fault that runs through the Makeevskoye and Olgovskoye licences and is a near offset to the M-2 well drilled in 1991, which tested 300 thousand cubic feet per day (Mcf/d) from the S5 in the Serpukhovian section and is currently producing approximately 272 Mcf/d.

The primary target in M-22 is the S6 zone which has proven very prolific in the M-16, M-17, and O-15 wells. There are secondary targets in the S5 and S7 zones as well.

Total time to drill, test and complete is expected to be approximately 80 days. In the event of a successful well, tie-in will follow very shortly as several flowlines were constructed earlier this year in anticipation of future drilling.

This well will qualify for the lower royalty rate of 30.25 per cent.