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Canadian Small caps and Penny stocks

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Deal Fanatic
User avatar
May 2, 2006
8355 posts
2268 upvotes
GTA
Sold WHN at .69. Made $215 after fees. Couldn’t quite time the bottom but ok for a day trade.

Added some more CBG at .21. It appears the afternoon news hasn’t disseminated widely yet. Given the results, it should be trading at 12 - 15M mkt cap. Will see what happens tmrw.
Sr. Member
Dec 31, 2015
858 posts
234 upvotes
You guys really think GGI was a pump and dump? Crying Face I have some hope still... Dumped 10k into it so far. Down like 60-70%.
Deal Addict
Jan 27, 2016
1502 posts
905 upvotes
Edmonton
Unfortunately I think it was. Could it regroup sure, but it seemed shady from day one. Those ceo postings were a joke and their market cap was so high based on what they currently had. Don’t feel bad, we’ve all lost in plays like that. The key is not to get fooled more than once.
herculesmaxpower wrote: You guys really think GGI was a pump and dump? Crying Face I have some hope still... Dumped 10k into it so far. Down like 60-70%.
Member
Jun 27, 2015
266 posts
162 upvotes
Sorry to hear that. I have been buying small caps since 2004 and primarily focused on mineral exploration companies. What I learned after all those years with them is that unless the company has a proven resource (43-101 for metals or 51-101 for oil/gas) it's basically a 50/50 gamble whether the stock will go up or down. But when there's an actual value in play, people can assess it's worth and the price can only go down so much(based on commodity price, cost to extract for that specific area/country, etc). GGI has some good nickle numbers, but it's still an early stage company. How it got to $4 is beyond my understanding, reminds me of the pre-2008 days when that happened a lot more often because capital was around to make it happen. Have to be picky these days when it comes to small cap mining companies.
herculesmaxpower wrote: You guys really think GGI was a pump and dump? Crying Face I have some hope still... Dumped 10k into it so far. Down like 60-70%.
Member
Jun 27, 2015
266 posts
162 upvotes
Central African Republic: The FPRC welcomes the evolution of the implementation of the Khartoum agreement.

By Press Release (CP) -Posted on April 22, 2019, 3:19

https://corbeaunews-centrafrique.com/ce ... nfphNWGczU

Note: typo in article showing 2014 when this agreement was signed in 2019, see article date below.

PRESS RELEASE
The General Coordination of the FPRC applauds the significant advances of the Khartoum peace agreement signed on February 6th, 2014 in Bangui, symbolized by recent salutary and saving visits of our peace allies.

The FPRC calls on all Central African compatriots to be restrained and calm, to put their country and differences a posteriori, to admit political failures and to appropriate the agreement as a tool for reform.

The FPRC regrets negative actions under the pretext of foolishness and notes the lack of patriotic love and civility of some compatriots.

The FPRC calls on the Government and our peace partners to urgently put in place the National Implementation and Monitoring Committee of the Peace Agreement to guarantee the agreement.

The FPRC calls all Central African citizens to respect the institutions and the laws of the Republic because the time is not the challenge of these institutions but the reconstruction. Let's build a country and not a profit.

The FPRC asks all Central Africans to unite around the Central African Peace Coalition led by President TOADERA and his Government to take the trouble, to double their courage and vigilance to achieve the long-awaited wonder, the rebirth of the Central African Republic worthy and prosperous.

Done at Ndele on 22nd April 2019
Member
Jun 27, 2015
266 posts
162 upvotes
KFG Level 2 Quote
Market Depth Orders/Shares Bid Price Ask Price Shares/Orders Market Depth
3 / 46,000 0.055 0.07 109,000 / 1
2 / 60,000 0.05 0.075 142,000 / 5
1 / 10,000 0.045 0.08 8,000 / 1
2 / 75,000 0.04 0.085 25,000 / 2
1 / 30,000 0.035 0.09 50,000 / 1
0 / 9,000 0.025 0.10 5,000 / 1
0 / 12,000 0.02 0.15 115,000 / 4
0 / 18,000 0.015 0.25 200,000 / 1
1 / 400,000 0.005 1.00 12,000 / 1
Deal Addict
Jan 27, 2016
1502 posts
905 upvotes
Edmonton
We cleaned that up nicely, next set of financials we should start to see new market cap given.
JimJones1972 wrote: KFG Level 2 Quote
Market Depth Orders/Shares Bid Price Ask Price Shares/Orders Market Depth
3 / 46,000 0.055 0.07 109,000 / 1
2 / 60,000 0.05 0.075 142,000 / 5
1 / 10,000 0.045 0.08 8,000 / 1
2 / 75,000 0.04 0.085 25,000 / 2
1 / 30,000 0.035 0.09 50,000 / 1
0 / 9,000 0.025 0.10 5,000 / 1
0 / 12,000 0.02 0.15 115,000 / 4
0 / 18,000 0.015 0.25 200,000 / 1
1 / 400,000 0.005 1.00 12,000 / 1
Deal Addict
Jan 27, 2016
1502 posts
905 upvotes
Edmonton
Cleaned up kfg at 7 cents...too good of a deal to pass on.
Member
Jun 27, 2015
266 posts
162 upvotes
Volant wrote: What price point do you guys see KFG and CAF hitting in what time frame?
hard to give a specific target really. With earnings based companies, usually you can value them at 10-15X earnings for a standard price and anything less is a deal and more is overvalued. But that's assuming sales/profits are consistent. If other projects or items are going on at once, they can add new value, but the market dictates that.

For example CAF at 7 cents is trading at less than 5X earnings and that's a steal whereas KFG it trading at a premium to it's EPS, but has a new project on the go that could add easy cash flow given that they are reactivating 4 wells rather than drilling and HRH.V announced 3 wells producing at 150bopd already.

Then there's AXM which technically trades at a huge premium based on it's EPS. However, because they are getting a project back worth hundreds of millions, the market has added a premium to the multiple, but still tiny when you compare the current market cap to the NPV of the gold asset.

SSA is probably the most consistent in terms of small cap EPS plays because every quarter it adds roughly the same amount of earnings and is slowly growing, but you can anticipate it's value easier.
Deal Addict
Dec 24, 2007
1993 posts
513 upvotes
Toronto
Just picked up a nice chunk of CAF

Doing my part. lol

I think I have a nice number now.

Cheers!
Last edited by badass on Apr 23rd, 2019 5:19 pm, edited 1 time in total.
Thread started in 2016 - 1927 fully gutted and renovated 2 storey detached home in the big T.O. - small projects still in progress.

RFD priceless!
Deal Fanatic
User avatar
May 2, 2006
8355 posts
2268 upvotes
GTA
KNR Kontrol Energy Schedules Fiscal 2018 Financial Results Release and Conference Call

https://investingnews.com/daily/tech-in ... ence-call/
Kontrol Energy Corp. (CSE:KNR, OTCQB:KNRLF, FSE:1K8) (the ”Company” or ”Kontrol”), announced it will release its fiscal 2018 financial results for the year ended December 31, 2018 on Tuesday, April 30th. The Company has also scheduled a conference call to provide a business update and discuss its 2018 financial results for Tuesday, April 30th at 4:30pm EST.
Deal Addict
Apr 2, 2006
1684 posts
291 upvotes
badass wrote: Just picked up a nice chunk of CAF

I think I have a nice number now.

Cheers!
Do you have a target for CAF? Seems undervalued...
Deal Addict
Dec 24, 2007
1993 posts
513 upvotes
Toronto
Sorry I don’t

I like their numbers, steady growth and I like that they are diversifying into real estate.

Its potential has definitely peaked my interest.

Cheers!
crustydragon wrote: Do you have a target for CAF? Seems undervalued...
Thread started in 2016 - 1927 fully gutted and renovated 2 storey detached home in the big T.O. - small projects still in progress.

RFD priceless!
Member
Jun 27, 2015
266 posts
162 upvotes
badass wrote: Sorry I don’t

I like their numbers, steady growth and I like that they are diversifying into real estate.

Its potential has definitely peaked my interest.

Trading at less than 5X earnings and less than NAV, pretty hard to lose on a small cap eps with those multiples and a clean balance sheet. Less than 50 million shares and insiders own around 26%.
Cheers!
Member
Jun 27, 2015
266 posts
162 upvotes
One play caught my eye recently, KUB.V. Large float, but majority insider held. Going to do more research on it today and post a DD if it looks as good as I think. This was the last news release:


Symbol C : KUB
Shares Issued 314,215,355
Close 2019-03-27 C$ 0.025
Recent Sedar Documents
View Original Document
Cub Energy earns $3.07-million (U.S.) in 2018

2019-03-27 07:21 MT - News Release


Mr. Mikhail Afendikov reports

CUB ENERGY ANNOUNCES NET EARNINGS OF US $3.1 MILLION OR US $0.01 PER SHARE FOR FISCAL 2018

Cub Energy Inc. has released its audited financial and operating results for the year ended Dec. 31, 2018. All dollar amounts are expressed in United States dollars unless otherwise noted. This update includes results from KUB-Gas LLC, of which Cub has a 35-per-cent equity ownership interest, Tysagaz LLC, Cub's 100-per-cent-owned subsidiary, and CNG LLC, of which Cub has a 50-per-cent equity ownership interest.

Mikhail Afendikov, chairman and chief executive officer of Cub, said: "We wish to report net income $3.1-million or one cent per share during the year ended Dec. 31, 2018, and receipt of $5.7-million in dividends from its eastern Ukraine investment. Kub-Gas maintained deliverability over 14 million cubic feet per day by successfully recompleting two wells in the Olgovskoye licence during 2018 and Kub-Gas is continuing other recompletions in 2019. In western Ukraine, Cub and its partner plan to drill our first three wells on the jointly owned Uzhgorod licence in 2019, which costs are expected to be incurred 100 per cent by our partner."

Operational highlights:

In the fourth quarter of 2018, Kub-Gas successfully recompleted the Olgovskoye-3 well to a "behind pipe pay" zone designated as the Bashkirian-1b (B1b). The well initially tested at higher rates and put into production at a stabilized rate of 1.4 million cubic feet per day (MMcf/d).
This followed the other successful recompletion, the Olgovskoye-9 (O-9) well to the zone designated as the Bashkirian-3 (B3). During a standard multirate test, the zone was tested up to 2.5 million cubic feet per day and was put into production at a stable rate of 1.7 MMcf/d.
The price of natural gas averaged $7.94 per thousand cubic feet (Mcf) and condensate price of $70.47/barrel during the year ended Dec. 31, 2018, as compared with $6.50/Mcf and $69.56/bbl for 2017.
Production averaged 836 barrels of oil equivalent per day (boe/d) (97 per cent weighted to natural gas and the remaining to condensate) for the year ended Dec. 31, 2018, as compared with 977 boe/d for 2017.
On Jan. 1, 2018, royalties on new wells drilled in Ukraine after Jan. 1, 2018, were reduced to 12 per cent from 29 per cent for a minimum period of five years.
On March 1, 2018, a new law was passed in Ukraine intended to simplify regulatory procedures for the oil and gas sector, which should increase the speed and efficiency of approvals.
The new nitrogen rejection unit (NRU) is planned to be operational in 2019. However, due to continued construction delays, on Nov. 19, 2018, the company filed a claim with American Arbitration Association, seeking $300,000 (plus interest and attorney fees) from the NRU manufacturer in contractual delay damages.
The company and its partner plan to start a three-well exploration program at Uzhgorod in mid-2019. The well costs are expected to be incurred 100 per cent by the company's partner.
Financial highlights:

The company reported net income of $3.1-million during the year ended Dec. 31, 2018, as compared with a net loss of $14.3-million in 2017 when the company recorded one-time impairment charges.
Netbacks of $29.33/boe or $4.88/Mcfe for the year ended Dec. 31, 2018, as compared with netback of $25.19/boe or $4.20/Mcfe for 2017.
During the year ended Dec. 31, 2018, the company received $5.7-million in dividends from KUB Holdings as compared with $4.1-million in dividends in 2017.
The company repaid $1.1-million of its loan to KUB-Gas during the year ended Dec. 31, 2018, in conjunction with its maturity.
(in thousands of U.S. dollars)

Three months ended, Year ended,
Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017

Petroleum and natural gas revenue 74 - 142 24
Pro rata petroleum and natural gas revenue (1) 4,385 3,609 14,864 14,285
Revenue from gas trading (2) 6,831 3,957 20,428 13,099
Net income (loss) 570 (15,290) 3,078 (14,342)
Income per share -- basic and diluted 0.00 (0.05) 0.01 (0.05)
Funds generated from operations (3) 2,353 2,832 2,690 2,519
Capital expenditures (5) 2 637 221 1,678
Pro rata capital expenditures (5) 222 596 1,682 4,320
Pro rata netback ($/boe) 35.28 27.29 29.33 25.19
Pro rata netback ($Mcfe) 5.88 4.55 4.88 4.20

Dec. 31, 2018 Dec. 31, 2017

Working capital (deficit) 3,798 (478)
Cash and cash equivalents 7,236 6,190
Long-term debt 5,591 5,451

Notes:
(1) Pro rata petroleum and natural gas revenue is a non-international financial reporting standards measure that adds
the company's petroleum and natural gas revenue earned in the respective periods to the company's 35-per-cent equity
share of the KUB-Gas natural gas sales that the company has an economic interest in.
(2) During the three months and year ended Dec. 31, 2018, the company recorded $6,831,000 (2017 -- $3,957,000) and
$20,428,000 (2017 -- $13,099,000) in revenue for gas trading and $6,276,000 (2017 -- $3,767,000) and $19.15-million
(2017 -- $12,767,000) for the cost of the sales for a net profit from gas trading of $555,000 (2017 -- $56,000) and
$1,278,000 (2017 -- $233,000), respectively.
(3) Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes
in non-cash working capital.
(4) Pro rata funds from operations is a non-IFRS measure that adds the company's funds from operations in the respective
periods to the company's 35-per-cent equity share of the KUB-Gas and 50-per-cent equity share of CNG Holdings funds from
operations that the company has an economic interest in.
(5) Capital expenditures includes the purchase of property, plant and equipment, and the purchase of exploration and
evaluation assets. Pro rata capital expenditures are a non-IFRS measure that add the company's capital expenditures in
the respective periods to the company's 35-per-cent equity share of the KUB-Gas and 50-per-cent equity share of CNG
Holdings capital expenditures that the company has an economic interest in.
Outlook

The company is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is under way at the time of this report with another three in the permitting phase. Kub-Gas may drill one additional well in 2019 and kick off a 3-D seismic program on the WO licence to delineate known structures found from 2-D seismic.

In western Ukraine, the company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The company and its partner plan to start a three-well exploration program in the Uzhgorod licence in mid-2019 on structures defined by 3-D seismic. The well costs are expected to be incurred 100 per cent by the company's partner.

Supporting documents

Cub's complete quarterly reporting package, including the unaudited interim financial statements and associated management's discussion and analysis, has been filed on SEDAR and has been posted on the company's website.

About Cub Energy Inc.

Cub Energy is an upstream oil and gas company, with a proven 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.

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.
Member
Jun 27, 2015
266 posts
162 upvotes
Cub Energy Due Diligence Report (Based on 2018 Year End Results – Released March 2019)

Financials + MD&A – All Information Found On Sedar

Stock Symbols: KUB – Canada & TPNEF - USA

Price: $0.05
Common Shares: 314,215,355
Insider/Institutional Holdings: 172,466,105 or 55% of common shares
Options: 15.3 million
Recent Fact Sheet: http://www.cubenergyinc.com/_resources/ ... et.pdf?v=1
Recent Company Presentation: http://www.cubenergyinc.com/_resources/ ... on.pdf?v=1
Financials – All Numbers Are Expressed In US Dollars.

ASSETS
Cash & Equivalents: $7,236,000
Prepaid Expenses & Inventory: $1,607,000
Trade & Receivables: $771,000
Equity Investments: $7,967,000
Property & Equipment: $3,588,000
Non-Current Receivables: $919,000
TOTAL ASSETS: $22,088,000 (2017 - $19,827,000)

LIABILTIIES
Trade Payables: $5,318,000
Shareholder Loans(Portion): $498,000
Loan from KUB-gas: $3,591,000
Shareholder Loans: $2,000,000
Provisions: $458,000
TOTAL LIABILITIES: $11,865,000 (2017 - $14,036,000)
Asset/Debt Ratio: 1.86

Q1 2019 results will be released end of April. Below are results from 2017 and 2018 sales.

2017 – All USD
Gas Sales: $24,000
Gas Trading: $13,099,000
Royalty Expense: ($7,000)
Income From Equity Investment: $6,767,000
Operating Expenses (Total): $34,218,000 - $16 million one time impairment included
Loss: $14,869,000 – Should have been a profit with one time expense removed

2018 – All USD
Gas Sales: $142,000
Gas Trading: $20,428,000
Royalty Expense: ($38,000)
Income From Equity Investment: $6,121,000
Operating Expenses (Total): $23,573,000
Income Tax Expense: $2,000
Foreign Currency Gain: $52,000
Income: $ 3,130,000

Earnings Per Share In 2018: $3,130,000 USD X 1.3344 CDN (Exchange Rate March 31 2019) = $4,176,672
**Canadian Company, Therefore earnings must be converted to reflect true share value**
$4,176,672 / 314,215,355(common shares) = $0.0133 EPS

MD&A Highlights From 2018 Results
The Company is a publicly-traded, international energy company engaged in exploration and development of onshore oil and gas properties in Ukraine. Key to success in this region is the Company’s strong local relationships, key operating partnerships and a history of management experience operating in-country.
Current production is driven by a 35% interest in KUB-Gas LLC (“KUB-Gas”) in eastern Ukraine and the Company’s 100% operated interest in western Ukraine in Tysagaz LLC (“Tysagaz”). The Company also holds a 50% interest in CNG Holdings Netherland B.V. (“CNG Holdings”) which in turn owns CNG LLC (“CNG LLC”) to jointly explore a production licence in western Ukraine.
As at December 31, 2018, the Company had an effective 35% ownership interest in KUB-Gas, a Ukrainian company which owns assets representing a substantial portion of the Company’s core operating properties, income and cashflow. The Company also owns 100% ownership of Tysagaz, whose producing assets are in western Ukraine but have been suspended since April 1, 2016 other than minor production from RK-1. In addition, the Company has an effective 50% ownership interest in CNG LLC, a Ukrainian company with a production licence in western Ukraine that has no current production but the Company expects to drill exploratory wells in 2019.
Highlights
• Kub-Gas successfully recompleted the Olgovskoye-3 (“O-3”) well to a “behind pipe pay” zone designated as the Bashkirian-1b (“B1b”). The well initially tested at higher rates and put into production at a stabilized rate at 1.4 million cubic feet per day (“MMcf/d”) in the fourth quarter of 2018.

• Kub-Gas also recompleted the Olgovskoye-9 (“O-9”) well to the zone designated as the Bashkirian-3 (“B3”). During a standard multi-rate test, the zone was tested up to 2.5 million cubic feet per day (“MMcf/d”) and was put into production at a stable rate of 1.7 MMcf/d during the second half of 2018.

• The Company reported income from equity investment of $6,121,000 during the year ended December 31, 2018 as compared to income of $6,767,000 in 2017.

• The Company reported net income of $3,078,000 or $0.01 per share during the year ended December 31, 2018 as compared to a net loss of $14,342,000 or $0.05 per share during 2017 when the Company recorded one-time impairment charges.

• During the year ended December 31, 2018, the Company received $5,676,000 in dividends from KUB Holdings as compared to $4,134,000 in dividends in 2017.

• The Company made a loan repayment of $1,067,000 to KUB-Gas during 2018 in conjunction with its maturity. In addition, the Company received $300,000 from Kub Holdings in conjunction with a longterm loan repayment.

• Production averaged 836 boe/d (97% weighted to natural gas and the remaining to condensate) for the year ended December 31, 2018 as compared to 977 boe/d for 2017.

• Netbacks of $29.33/boe or $4.88/Mcfe for the year ended December 31, 2018 as compared to netback of $25.19/Boe or $4.20/Mcfe for 2017.

• Achieved average natural gas price of $7.94/Mcf and condensate price of $70.47/bbl during the year ended December 31, 2018 as compared to $6.50/Mcf and $69.56/bbl for 2017.

• On January 1, 2018, the royalties on new wells drilled in Ukraine after January 1, 2018 were reduced to 12% from 29% for a minimum period of five years.

• On March 1, 2018, a new law was passed in Ukraine intended to simplify regulatory procedures for the oil and gas sector which should increase the speed and efficiency of approvals.

• The new Nitrogen Rejection Unit (“NRU”) is nearing completion and is planned to be operational in 2019. However, due to continued construction delays, on November 19, 2018, the Company filed a claim with American Arbitration Association (“AAA”), seeking $300,000 (plus interest and attorney fees) from the NRU manufacturer in contractual delay damages.

• The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Eastern Ukraine KUB-Gas Assets (35%)
Kub-Gas has successfully recompleted the O-3 and O-9 wells in 2018. There are ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Opportunities such as these generate above average returns for shareholders, particularly given the current gas price in Ukraine. The North Yatskivska #3 (“NY-3”) well on the West Olgovskoye (“WO”) licence was drilled to a total depth of 2,300 metres and evaluated several prospective horizons. Test results indicated the well encountered noncommercial gas shows. The well was drilled based on 2D seismic and the Company believes the commencement of a 3D seismic program later this year should improve the probability of success of future exploration wells.
Western Ukraine Tysagaz Assets (100% Interest)
The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the allowable limit stipulated by the gas pipeline operator. While the Company waitsfor the nitrogen rejection unit (“NRU”) that can extract nitrogen from natural gas from the shallower sands, the Company began selling a nominal amount of rich gas from a deep well to evaluate the Mesozoic formation. The Company is purchasing a new NRU to re-commence production on the RK field. The new NRU is being manufactured in the United States. The new NRU is planned to be operational in 2019.
Western Ukraine CNG Assets (50% Interest)
During 2017, CNG LLC completed a 118 square kilometre 3D seismic survey on the Uzhgorod production licence in western Ukraine. The results were interpreted and identified multiple drill targets. The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of the permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Ukraine Gas Prices and Currency
The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.76 UAH/USD at December 31, 2018, which was relatively flat as compared to the 28.1 UAH/USD at December 31, 2017. During the year ended December 31, 2018, gas pricesrealized were $7.94/Mcf which was higher than the 2017 price of $6.50/Mcf. The Company believes gas prices in 2018 were higher than 2017 because of a longer colder winter in Europe this year and lack of inventory. The future of natural gas prices in Ukraine is currently subject to a high degree of uncertainty and it is unknown what the future prices the Company will receive on its Ukraine production.
Outlook
The Company is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is underway at the time of this report with another 3 in the permitting phase. Kub-Gas may drill one additional well in 2019 and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic. In western Ukraine, the Company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The Company and its partner plan to start a three well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The well costs are expected to be incurred 100% by our partner.
From Last Information Circular:
Principal Holders of Voting Shares Other than as disclosed below, to the knowledge of the Corporation's directors and executive officers, as at the date of this Information Circular, no person or corporation beneficially owns, directly or indirectly, or controls or directs voting securities carrying 10% or more of the voting rights attached to the issued and outstanding Common Shares of the Corporation. Name No. of Common Shares % of Outstanding Common Shares Pelicourt Limited(1) 124,336,089 39.5% Fergava Finance Inc. 44,444,444 14.1% Notes: (1) Mikhail Afendikov, Executive Chairman and Chief Executive Officer of the Corporation, owns a 72.4% interest in Pelicourt Limited. As of the Record Date, the directors and officers of Cub own, directly or indirectly, 3,685,572 Common Shares, representing approximately 1.2% of the issued and outstanding Common Shares, 9,900,000 Stock Options, representing approximately 57% of outstanding Stock Options, zero Restricted Share Units and zero Warrants.
Deal Addict
Jan 27, 2016
1502 posts
905 upvotes
Edmonton
They incur 0$ cost for the exploration wells coming up?

The Company is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is underway at the time of this report with another 3 in the permitting phase. Kub-Gas may drill one additional well in 2019 and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic. In western Ukraine, the Company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The Company and its partner plan to start a three well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The well costs are expected to be incurred 100% by our partner.
JimJones1972 wrote: Cub Energy Due Diligence Report (Based on 2018 Year End Results – Released March 2019)

Financials + MD&A – All Information Found On Sedar

Stock Symbols: KUB – Canada & TPNEF - USA

Price: $0.05
Common Shares: 314,215,355
Insider/Institutional Holdings: 172,466,105 or 55% of common shares
Options: 15.3 million
Recent Fact Sheet: http://www.cubenergyinc.com/_resources/ ... et.pdf?v=1
Recent Company Presentation: http://www.cubenergyinc.com/_resources/ ... on.pdf?v=1
Financials – All Numbers Are Expressed In US Dollars.

ASSETS
Cash & Equivalents: $7,236,000
Prepaid Expenses & Inventory: $1,607,000
Trade & Receivables: $771,000
Equity Investments: $7,967,000
Property & Equipment: $3,588,000
Non-Current Receivables: $919,000
TOTAL ASSETS: $22,088,000 (2017 - $19,827,000)

LIABILTIIES
Trade Payables: $5,318,000
Shareholder Loans(Portion): $498,000
Loan from KUB-gas: $3,591,000
Shareholder Loans: $2,000,000
Provisions: $458,000
TOTAL LIABILITIES: $11,865,000 (2017 - $14,036,000)
Asset/Debt Ratio: 1.86

Q1 2019 results will be released end of April. Below are results from 2017 and 2018 sales.

2017 – All USD
Gas Sales: $24,000
Gas Trading: $13,099,000
Royalty Expense: ($7,000)
Income From Equity Investment: $6,767,000
Operating Expenses (Total): $34,218,000 - $16 million one time impairment included
Loss: $14,869,000 – Should have been a profit with one time expense removed

2018 – All USD
Gas Sales: $142,000
Gas Trading: $20,428,000
Royalty Expense: ($38,000)
Income From Equity Investment: $6,121,000
Operating Expenses (Total): $23,573,000
Income Tax Expense: $2,000
Foreign Currency Gain: $52,000
Income: $ 3,130,000

Earnings Per Share In 2018: $3,130,000 USD X 1.3344 CDN (Exchange Rate March 31 2019) = $4,176,672
**Canadian Company, Therefore earnings must be converted to reflect true share value**
$4,176,672 / 314,215,355(common shares) = $0.0133 EPS

MD&A Highlights From 2018 Results
The Company is a publicly-traded, international energy company engaged in exploration and development of onshore oil and gas properties in Ukraine. Key to success in this region is the Company’s strong local relationships, key operating partnerships and a history of management experience operating in-country.
Current production is driven by a 35% interest in KUB-Gas LLC (“KUB-Gas”) in eastern Ukraine and the Company’s 100% operated interest in western Ukraine in Tysagaz LLC (“Tysagaz”). The Company also holds a 50% interest in CNG Holdings Netherland B.V. (“CNG Holdings”) which in turn owns CNG LLC (“CNG LLC”) to jointly explore a production licence in western Ukraine.
As at December 31, 2018, the Company had an effective 35% ownership interest in KUB-Gas, a Ukrainian company which owns assets representing a substantial portion of the Company’s core operating properties, income and cashflow. The Company also owns 100% ownership of Tysagaz, whose producing assets are in western Ukraine but have been suspended since April 1, 2016 other than minor production from RK-1. In addition, the Company has an effective 50% ownership interest in CNG LLC, a Ukrainian company with a production licence in western Ukraine that has no current production but the Company expects to drill exploratory wells in 2019.
Highlights
• Kub-Gas successfully recompleted the Olgovskoye-3 (“O-3”) well to a “behind pipe pay” zone designated as the Bashkirian-1b (“B1b”). The well initially tested at higher rates and put into production at a stabilized rate at 1.4 million cubic feet per day (“MMcf/d”) in the fourth quarter of 2018.

• Kub-Gas also recompleted the Olgovskoye-9 (“O-9”) well to the zone designated as the Bashkirian-3 (“B3”). During a standard multi-rate test, the zone was tested up to 2.5 million cubic feet per day (“MMcf/d”) and was put into production at a stable rate of 1.7 MMcf/d during the second half of 2018.

• The Company reported income from equity investment of $6,121,000 during the year ended December 31, 2018 as compared to income of $6,767,000 in 2017.

• The Company reported net income of $3,078,000 or $0.01 per share during the year ended December 31, 2018 as compared to a net loss of $14,342,000 or $0.05 per share during 2017 when the Company recorded one-time impairment charges.

• During the year ended December 31, 2018, the Company received $5,676,000 in dividends from KUB Holdings as compared to $4,134,000 in dividends in 2017.

• The Company made a loan repayment of $1,067,000 to KUB-Gas during 2018 in conjunction with its maturity. In addition, the Company received $300,000 from Kub Holdings in conjunction with a longterm loan repayment.

• Production averaged 836 boe/d (97% weighted to natural gas and the remaining to condensate) for the year ended December 31, 2018 as compared to 977 boe/d for 2017.

• Netbacks of $29.33/boe or $4.88/Mcfe for the year ended December 31, 2018 as compared to netback of $25.19/Boe or $4.20/Mcfe for 2017.

• Achieved average natural gas price of $7.94/Mcf and condensate price of $70.47/bbl during the year ended December 31, 2018 as compared to $6.50/Mcf and $69.56/bbl for 2017.

• On January 1, 2018, the royalties on new wells drilled in Ukraine after January 1, 2018 were reduced to 12% from 29% for a minimum period of five years.

• On March 1, 2018, a new law was passed in Ukraine intended to simplify regulatory procedures for the oil and gas sector which should increase the speed and efficiency of approvals.

• The new Nitrogen Rejection Unit (“NRU”) is nearing completion and is planned to be operational in 2019. However, due to continued construction delays, on November 19, 2018, the Company filed a claim with American Arbitration Association (“AAA”), seeking $300,000 (plus interest and attorney fees) from the NRU manufacturer in contractual delay damages.

• The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Eastern Ukraine KUB-Gas Assets (35%)
Kub-Gas has successfully recompleted the O-3 and O-9 wells in 2018. There are ten other wells with “behind pipe pays” that may be attractive recompletion opportunities in the Olgovskoye License. As the currently producing intervals deplete, the production team can recomplete these additional zones in the existing wells. Opportunities such as these generate above average returns for shareholders, particularly given the current gas price in Ukraine. The North Yatskivska #3 (“NY-3”) well on the West Olgovskoye (“WO”) licence was drilled to a total depth of 2,300 metres and evaluated several prospective horizons. Test results indicated the well encountered noncommercial gas shows. The well was drilled based on 2D seismic and the Company believes the commencement of a 3D seismic program later this year should improve the probability of success of future exploration wells.
Western Ukraine Tysagaz Assets (100% Interest)
The RK field was temporarily suspended on April 1, 2016 because the nitrogen concentration exceeded the allowable limit stipulated by the gas pipeline operator. While the Company waitsfor the nitrogen rejection unit (“NRU”) that can extract nitrogen from natural gas from the shallower sands, the Company began selling a nominal amount of rich gas from a deep well to evaluate the Mesozoic formation. The Company is purchasing a new NRU to re-commence production on the RK field. The new NRU is being manufactured in the United States. The new NRU is planned to be operational in 2019.
Western Ukraine CNG Assets (50% Interest)
During 2017, CNG LLC completed a 118 square kilometre 3D seismic survey on the Uzhgorod production licence in western Ukraine. The results were interpreted and identified multiple drill targets. The Company and its partner plan to start a three well exploration program at Uzhgorod in mid 2019, dependent on timing of the permitting and weather conditions in the field. The well costs are expected to be incurred 100% by our partner.
Ukraine Gas Prices and Currency
The Ukrainian exchange, the Hryvnya (“UAH”) rate versus the USD was 27.76 UAH/USD at December 31, 2018, which was relatively flat as compared to the 28.1 UAH/USD at December 31, 2017. During the year ended December 31, 2018, gas pricesrealized were $7.94/Mcf which was higher than the 2017 price of $6.50/Mcf. The Company believes gas prices in 2018 were higher than 2017 because of a longer colder winter in Europe this year and lack of inventory. The future of natural gas prices in Ukraine is currently subject to a high degree of uncertainty and it is unknown what the future prices the Company will receive on its Ukraine production.
Outlook
The Company is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is underway at the time of this report with another 3 in the permitting phase. Kub-Gas may drill one additional well in 2019 and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic. In western Ukraine, the Company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The Company and its partner plan to start a three well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The well costs are expected to be incurred 100% by our partner.
From Last Information Circular:
Principal Holders of Voting Shares Other than as disclosed below, to the knowledge of the Corporation's directors and executive officers, as at the date of this Information Circular, no person or corporation beneficially owns, directly or indirectly, or controls or directs voting securities carrying 10% or more of the voting rights attached to the issued and outstanding Common Shares of the Corporation. Name No. of Common Shares % of Outstanding Common Shares Pelicourt Limited(1) 124,336,089 39.5% Fergava Finance Inc. 44,444,444 14.1% Notes: (1) Mikhail Afendikov, Executive Chairman and Chief Executive Officer of the Corporation, owns a 72.4% interest in Pelicourt Limited. As of the Record Date, the directors and officers of Cub own, directly or indirectly, 3,685,572 Common Shares, representing approximately 1.2% of the issued and outstanding Common Shares, 9,900,000 Stock Options, representing approximately 57% of outstanding Stock Options, zero Restricted Share Units and zero Warrants.
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May 2, 2006
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loopy1984 wrote: They incur 0$ cost for the exploration wells coming up?

The Company is participating with KUB-Gas to complete additional recompletion operations given the success of the O-3 and O-9 recompletions, one of which is underway at the time of this report with another 3 in the permitting phase. Kub-Gas may drill one additional well in 2019 and kickoff a 3D seismic program on the WO licence to delineate known structures found from 2D seismic. In western Ukraine, the Company is purchasing a new NRU with a plan to resume production at the RK field in 2019. The Company and its partner plan to start a three well exploration program in the Uzhgorod license in mid 2019 on structures defined by 3D seismic. The well costs are expected to be incurred 100% by our partner.
Interesting... This was on my radar quite a while back when it traded around .02. Was dead in the water for a while but looks like they're getting their ducks in order.
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May 2, 2006
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GOOD with some interesting news: Good Life Networks Property, 495 Communications, Partners with inMobi, a Mobile Advertising Company That Reaches 1.5BN Mobile Devices

https://finance.yahoo.com/news/good-lif ... 00877.html

Took a small position at .355 for a trade. Not a fan of management here, so not planning on holding long-term.
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May 22, 2003
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STC and FLT have been running nicely in the last few days for me. Down on AXM of course...

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