Kulczyk Oil Ventures gets approval for conversion of Olgovskoye license

Source: CUB Energy Inc.

CUB Energy Inc. ("CUB", or the "Company") (TSX VENTURE: KUB.V), an international upstream oil and gas company, is pleased to refer to the news release of Kulczyk Oil Ventures Inc. ("Kulczyk") dated February 13, 2012 (the "Kulczyk Release"), reporting that the Ukrainian Ministry of Fuel and Energy has formally acknowledged the conversion of the Olgovskoye license from a five-year exploration license to a 20-year production license. The Kulczyk release reports that under the terms of an exploration license no field is allowed to produce more than 10% of the volumes in place. Under the terms of the new license, according to the Kulczyk release, production from the Olgovskoye field is no longer limited. The Olgovskoye license is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary of Kulczyk. As announced in CUB's news release of January 26, 2012, CUB has entered into a definitive agreement to acquire KUB-Gas's 30% owner, Gastek LLC ("Gastek") (the "Gastek Acquisition"). CUB expects to complete the Gastek Acquisition in the first half of 2012, subject to shareholder and regulatory approval (including approval of the TSX Venture Exchange). Upon completion of the Gastek Acquisition, CUB will be the beneficial holder of Gastek's effective 30% interest in KUB-Gas.

The Kulczyk Release reported the following with respect to the Olgovskoye license:

"The Olgovskoye license is presently the most productive of the five licenses held by KUB-Gas in the Lugansk Oblast of southeast Ukraine. Since KOV acquired its ownership interest in KUB-Gas in June 2010 five new gas wells have been drilled on the Olgovskoye license and one additional well at Olgovskoye-6 ("O-6"), which was drilled prior to June 2010, was fracture stimulated in the fourth quarter of 2011. The O-6 well was tied-in as a producing gas well in early February 2012 at a rate of 1.5 million cubic feet per day ("MMcf/d"). Gross production from Olgovskoye is currently 12 MMcf/d to KUB-Gas, representing approximately 65% of total production from all of the licenses."