Ukrainian Energy Forum June 25, 2014 Mikhail Afendikov Chairman and CEO
Black Sea Focus Ukraine BELARUS POLAND Kiev Ukraine has one of the most energy intensive economies in the world with unmet demand UKRAINE SLOVAKIA An estimated 39 Tcf(1) of proven gas reserves remain in the country, Hungary…
Establishing a Strong Presence in the Black Sea Region Regional pricing dynamics are excellent 2013 average sales price of 11.26/Mcf and a corporate netback of 6.84/Mcfe(1) Q1 2014 average sales price of 8.63/Mcf and a corporate…
Consistently Growing Production Net Production (boe/d) 2,800-3,100 2,000 2,070 RK Field 1,531 M Field O Field 2012 Exit 2013 Exit 2014 Current 2014 Forecast Exit 5
2014 Drilling Program 2014 Well Q1 Q2 Q3 Q4 RK-21 M-17 O-11 RK-1 (re-entry) Drilling NM-4 Drilling RK-23 RK-24 M-15 M-18 S-1 S-2 Stimulations Workovers/Dual Completions Seismic Highly Active Capital Program;…
Near-Term High-Impact Activity Development Activity 6 Development Wells 4.0 3.5 Could bring gross 2P reserves of 14.4 Bcfe on Gross BCFE Reserves 3.0 production 2.5 2.0 RK wells are 100% W.I. locations 1.5 Targeting…
Western Ukraine Transcarpathian Sedimentary Basin 1 U Field RK Field S Field KR Field Transcarpathian Sedimentary Basin 4 licenses 100% owned by Cub 82,000 gross acres Growth focus for 2014 9
RK Field Western Ukraine Transcarpathian Sedimentary Basin RK Field: Asset Overview W.I. Rusko-Komarovske (RK) field 100% owned by Cub U Field Operator Cub RK Field Contract 20 year special production permit (expires 2030) S Field…
Stanavo Field Western Ukraine Transcarpathian Sedimentary Basin S Field: Asset Overview W.I. Stanovo (S) field 100% owned by Cub U Field Operator Cub RK Field Contract 5 year exploration permit (expires December 2015) S Field…
Eastern Ukraine Dnieper-Donets Sedimentary Basin Southeast Basin, Turkey 3 NM Field O Field M Field OS Field EV Field KR Field Legend: K Field 100% WI V Field 30% WI JV Dnieper-Donets Sedimentary Basin 5…
O Field Eastern Ukraine O Field: Asset Overview Best case W.I. Olgovskoye (O) field 30% owned by Cub O-24 1 GIIP 32.7bcf Operator Kub-Gas O-15 1 Contract 20 year special production permit (expires 2032) Production 11.7 MMcf/d…
M Field Eastern Ukraine M Field: Asset Overview W.I. (M) field 30% owned by Cub Best case GIIP 40.4bcf Operator Kub-Gas Contract 20 year special production permit (expires 2032) Production 17.0 MMcf/d gross (5.1 MMcf/d net) Area 18,000…
O Field - Hydraulic Fracture Present and Future R30c Producers O-4,O-5, O-6 & O-8 Noncommercial Prior to Fracture Stimulation O-24 O-4 Currently Fractured Producing O-24 Future Scheduled Fracture O-4 O-11 New Drill scheduled…
M-Field - Review S-6 Structure M-17: Summary Dual completion Candidate Results: (40m of net gas pay) R30c: 22m gas/water M-17 S5: 2.5m gas S6: 10m gas Tested 6.6 MMcf/D 22.1 Mpa on M-16 8mm choke M-22 M-15 Complete in S-6…
Cub Energy Hydraulic Fracturing Results Two wells noncommercial prior to Fracture Stimulation (O-6 & O-8) Two wells recompleted in previously noncommercial interval after Fracture Stimulation (O-4 & O-5) 2500 2000 O6 Frac…
O-6 Vertical Well in Ukraine - Hydraulic Frac, Single Stage, 25 Tonnes Proppant The Blender: M-60 capable of 8 m3/min 06 Well Head 3 x 2250 bhp Belarus pump unit - 2250 bhp 18
New Technology Developed in USA Tight Gas and Oil Production Through Horizontal Drilling and Multi-Storage Hydraulic Fracs Bakken Frac - Haynesville Shale US =US Eagle Ford Shale-US Eagle Ford Shale- US 19
Projected Ukraine Growth - Based on USA Growth Utilizing New Technology Ukraine Base case Plus growth rate seen in USA 30000 25000 20000 Mil m3 Gas 15000 10000 5000 0 2001 2004 2007 2009 2011 2013 2015…
Recent Developments Eastern Ukraine To date operations have been largely unaffected Proceeding with our work program on both the eastern and western assets Increased security on our assets Taken steps to ensure the safety…
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