Cub Energy Inc. announced in a press release that the Olgovskoye-24 (O-24) well in Ukraine has been cased to total depth as a potential gas producer. The O-24 well is operated by KUB-Gas LLC, a partially owned subsidiary in which Cub has a 30% ownership interest through its 30% shareholding of KUBGas Holdings Ltd.

The O-24 well commenced drilling in August with an original planned total depth of 2,900 m (9,514 ft). During the course of drilling it was decided to deepen the well to further test the Serpukhovian zone first discovered in the M-16 well and later in the O-15 well, according to the release. Consequently, the O-24 well was drilled to a final total depth of 3,300 m (10,827 ft) and logged. The logs indicate four potential gas-bearing zones in both the Bashkirian and Serpukhovian zones. Production testing of the well is scheduled to occur prior to year-end.

The KUB-Gas-owned K-200 drilling rig used to drill the O-24 well will now be moved to drill the Makeevskoye-17 (M-17) well, approximately 14 km (9 miles) to the southeast. The M-17 well will be drilled to a target depth of 3,450 m (11,319 ft) and will evaluate the gas potential of the Serpukhovian S5 and S6 zones. The M-17 well location is about 1 km (0.6 miles) northwest of Makeevskoye-16 (M-16), according to the release. The M-16 was drilled to a total depth of 4,300 km (2,672 miles) in 3Q and 4Q 2012 and subsequently tested gas from the S6 zone at a maximum rate of 122 Mcm/d (4.3 MMcf/d). The M-16 well was tied in for commercial production in June 2013, and current production from the S5 zone is more than 102 Mcm/d (3.6 MMcf/d).