NAFTA Acquires a 50% Interest in the Uzhgorod License in Western Ukraine
Slovakia-based integrated oil & gas company NAFTA AS has entered into a Share Purchase Agreement (SPA) with TSX-V listed Cub Energy Inc. to acquire its 50% interest in CNG Holdings Netherlands BV for an initial consideration of €600,000 (approximately US$728,000) plus additional contingent payments of up to €200,000 (approximately US$242,000). CNG Holdings Netherlands’ sole asset is its 100% ownership of CNG LLC (Ukraine LLC), which holds a 100% interest in the Uzhgorod license in Western Ukraine.
In July 2016, NAFTA had entered into a SPA with Cub Energy to acquire the initial 50% interest in CNG Holdings Netherlands, in exchange for a total consideration of approximately €1.5 million, plus certain work commitments.
The Uzhgorod license covers an area of approximately 300 sq. km in the Transcarpathian basin in Western Ukraine, situated near the Prtushka field, which lies on the Slovakian side of the border. The license was originally awarded to Cub Energy in March 2016 on a 20-year special production permit. The license is still in its exploration phase, and contains the Uzhgorod field where well Uzhgorod – 101 was completed in October 2019. The work program includes drilling of up to three exploratory wells with average planned depth of 1,500 to 1,900 m and evaluating subsurface data to review the locations of remaining wells.
“We entered the Ukrainian market for the first time thanks to the conclusion of a partnership with Cub Energy and the acquisition of 50% in the Uzhgorod license. During the cooperation, we shared mutual know-how and especially had the opportunity to apply our many years of experience in geology, reservoir engineering, and drilling. Acquiring a 100 percent of the license gives us a further opportunity for more flexible development of activities as well as investments in this location,” commented Martin Bartošovič, CEO of NAFTA.
NAFTA is engaged in the exploration, production, transportation, storage, and supply of natural gas in Slovakia. In addition, the company is also engaged in providing drilling and rig services to clients in Slovakia. NAFTA’s major shareholders include SPP Infrastructure AS (56.15%) and Czech Gas Holding Investment BV (40.45%).
Texas-based Cub Energy is engaged in the exploration and production of oil and natural gas in Ukraine, with a primary focus on the Dnieper Donets and Transcarpathian basins.
The transaction is subject to customary closing conditions, including Ukrainian regulatory approvals, and is expected to close within the next two months.