Cub Energy Inc. announced the Olgovskoye-15 (“O-15”) well has commenced drilling.The O-15 well is operated by KUB-Gas LLC (“KUB-Gas”), a partially-owned subsidiary in which Cub has a 30% ownership interest.
Olgovskoye-15 Well
The O-15 well, with a planned total measured depth (“MD”) of 3,200 metres, will be
drilled as a directional well with the KUB-Gas owned K-200 drilling rig. The well is
being drilled to evaluate the potential of the Bashkirian R30c and Serpukhovian S5
reservoir sands to further develop the gas production capability of the Olgovskoye
Field. The well is expected to take approximately 70 days to reach its planned MD.
The Olgovskoye Production Licence is located approximately 160 kilometres to the
northwest of the City of Lugansk in northeastern Ukraine. Since June 2010 five
Olgovskoye gas wells have been tied-in to commercial production and two wells were
fracture stimulated in the fourth quarter of 2011, the Olgovskoye-6 (“O-6”), which was
drilled prior to June 2010, and Olgovskoye-8 (“O-8”). The O-6 well was tied-in as a
producing gas well in early February 2012 at a gross rate of 1.5 million cubic feet per
day (“MMcf/d”) and the O-8 well was tied-in to commercial production in March 2012
at a gross rate of 1 MMcf/d. Gross production from the Olgovskoye Licence averaged
11.42MMcf/d to KUB-Gas (3.5 MMcf/d net to Cub) during the month of February,
representing approximately 40 percent of total production from all of Cub’s licences.
