Cub Energy has entered into a letter agreement dated September 3, 2021 with its partner to sell its 35% interest in KUBGAS Holdings Limited in a deal valued at approximately US $10.6 million. The consideration comprises a cash payment of US $2.6 million and the settlement of approximately US $8.0 million in debt that the Company owes KUBGAS, subject to adjustments on the completion date. The sale terms were negotiated at arm’s length with the partner and closing of the transaction is subject to the parties entering into a definitive agreement and the Company obtaining TSX Venture Exchange approval.

Ukraine operations

Patrick McGrath, CEO of Cub said: 
“Cub Energy’s founder and former CEO, Mikhail Afendikov, built KUBGAS into one of the largest natural gas producers in Ukraine during the 2000s. The Company is proud of its success, but it has decided to divest its remaining interest in this asset. The sale will add cash and substantially deleverage Cub’s balance sheet by reducing 80% of the Company’s debt as of the last quarterly financial results. The divesture allows Cub to focus on its 100% owned western Ukraine gas assets and its associated power generation business. The company continues to review new opportunities.” 

KeyFacts Energy: Cub Energy Ukraine country profile