Cub Energy Inc.recently announced it has entered into a share purchase agreement (SPA) to sell its 50% interest in CNG Holdings Netherlands B.V. (CNG), which in turn owns CNG LLC (Ukraine LLC), the 100% owner of the Uzghorod licence in western Ukraine. (Logo quoted from Club Energy’s website)

Cub is to receive consideration of €800,000 (US $970,000) for its 50% interest in CNG. The consideration consists of €600,000 (US $728,000) in cash on closing and €200,000 (US $242,000) is a contingent payment on certain future events including a commercial discovery. The closing is subject to certain conditions including Ukraine regulatory approval. The company expects the closing in approximately one to two months’ time and will use the cash for general working capital.

Patrick McGrath, Cub’s Interim Chief Executive Officer, said “Cub decided to divest its interest in CNG as we view it as a non-core asset that will likely be capital intensive in the near future as it is at the exploration stage.”

Cub Energy is a power and upstream oil and gas company. 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 power and oil and gas assets within a high pricing environment. 

(IRuniverse)

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