Cub Energy Inc., a Ukraine-focused upstream oil and gas company, announces the sudden passing of its Executive Chairman, President, Chief Executive Officer and founder, Mikhail Afendikov, on February 1, 2021. On behalf of the entire Cub team, we extend our deepest sympathies and condolences to Mikhail’s family and friends.
Mikhail and his partners were instrumental in building and growing Kub-Gas LLC to one of the largest private natural gas producers in Ukraine at its peak production. Mikhail was a leader, mentor and friend to the Cub team and will be missed dearly.
The Board of the Company has appointed Patrick McGrath as Interim Chief Executive Officer to oversee daily operations and Eugene Chaban as Interim Chief Financial Officer. Mr. McGrath was previously the Chief Financial Officer of the Company. John Booth, a current director of the Company, has been appointed Chairman of the Board. The appointments are subject to regulatory approval.
Mr. Chaban has been working with the Company in a management position since 2014 and most recently has been in charge of the Ukraine gas trading business. Mr. Chaban was previously the Controller and Deputy Chief Financial Officer of Ukraine-based oil and gas companies and was a Senior Auditor with KPMG.
Before the untimely passing of Mr. Afendikov, the Company reached an agreement on January 22, 2021 with Pelicourt Limited (“Pelicourt”), for which Mr. Afendikov was the majority shareholder, on the extension of the shareholder loan that was otherwise due on January 31, 2021. Under the new terms, the interest remains unchanged at 10.8% and the loan was extended by three years to March 31, 2024. The repayment of the facility will be $150,000 per quarter with the first payment made on January 27, 2021. The current balance of the loan is $1,650,000. The loan can be called at any time with 60 days written notice.
