Cub Energy Inc. Receives Additional 5% Ownership in Kubgas Holdings Limited

HOUSTON, TEXAS--(Marketwired - Feb. 8, 2016) - Cub Energy Inc. ("Cub" or the "Company") (TSX VENTURE:KUB) announces that its wholly-owned subsidiary, Gastek LLC ("Gastek"), and Resano Trading Ltd ("Resano") completed their transaction today, resulting in Gastek receiving an additional 5% ownership interest in KUBGAS Holdings Limited ("KUBGAS"). Resano is an affiliate of Burisma Group, the leading independent oil & gas producer in Ukraine with approximately 14,000 boe/d daily production in 2015.

As a result of the transaction, the Company will continue its participation as a 35% shareholder in KUBGAS instead of the prior 30% shareholding for no additional consideration. The Company has the ability to further increase its ownership interest from 35% to 40% of KUBGAS by:

1. earning an additional 2.5% ownership interest from Resano when Resano has received a cumulative US $25 million in dividends from KUBGAS; and
2. an option to purchase within one year of the above-mentioned 2.5% transfer from Resano a further 2.5% ownership interest in KUBGAS at a price equal to 2.5% of the net present value of 2P reserves at a 10% discount at the time of exercise.

KUBGAS holds a 100% interest in KUB-Gas LLC, a Ukrainian entity with five production licences and one exploration licence in eastern Ukraine with current gross production of approximately 3,800 boe/d.

Resano and Gastek are expected to negotiate and agree to amendments to the Shareholders' Agreement and the Memorandum and Articles of KUBGAS on or before March 1, 2016.

Cautionary Statements:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

About Cub Energy Inc.

Cub Energy Inc. (TSX VENTURE:KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in the Black Sea region. 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.