Cub Energy agrees on purchase of Ukraine's PrivateCo for $25 mln
KYIV. March 14 (Interfax) - Cub Energy Inc. (formerly 3P International Energy Corp.) has agreed on the purchase of PrivateCo, a Ukrainian mining company, for $25 million.
As reported on the website of Cub Energy, to buy the assets, the company will issue 55.6 million additional shares with a face value of $0.45 per share.
It is planned to obtain permits from antitrust authorities and close the transaction by June 1.
PrivateCo has three special permits for the development of several deposits, which have a total area of about 280 square kilometers in the east of Ukraine (Oskolonivska, Krakivska and Skhidno-Verhunska deposits). Contingent gas reserves are 9.6 billion cubic feet. The sites are located near those developed by Cub Energy
Seismic exploration on the new fields is to be started in the fourth quarter of 2013, drilling should begin no later than in June 2015. The program will be financed using the funds of Cub Energy, including dividends from a stake in KUB-Gas (Luhansk region).
Cub Energy, headquartered in Houston, Texas and an office in Kyiv, puts itself among the top five oil and gas operators in Ukraine. The company's largest assets are a 30% stake in Ukrainian firm KUB Gas, which is developing the Olgovskoye, Makeyevskoye, North Makeyevskoye, Vergunskoye and Krutogorivskoye fields in the Dnipro-Donetsk basin; and the company Tysagaz, which holds the licenses to the Russko-Komarovskoye, Stanovo and Korolevskoye gas fields, and the Uzhgorod block.
Cub Energy has reported that it has proven reserves of 2.3 million barrels of oil equivalent, proven plus probable reserves of 4.5 million barrels and proven plus probably plus possible reserves of 6.3 million barrels.
