Mr. Mikhail Afendikov reports

CUB ENERGY INC. COMMENCES PRODUCTION OF THE MAKEEVSKOYE-20 WELL

Cub Energy Inc. has commenced commercial production of the Makeevskoye-20 (M-20) well in Ukraine.

Makeevskoye-20

The M-20 well commenced commercial production on Nov. 1 and is currently producing at a gross rate of 1,042 barrels of oil equivalent per day (Cub's 30 per cent -- 312 barrels of oil equivalent per day).

The M-20 well was drilled to a total depth of 2,000 metres, perforated in the R8 zone and cased to total depth in early August, 2012. The primary objective of the well was to evaluate the potential of the R8 zone at a depth of approximately 1,450 metres and further develop the Makeevskoye R8 pool.

The R8 pool was originally discovered by the Makeevskoye-19 (M-19) well in the second half of 2010. The pool was extended approximately one kilometre to the west by the Makeevskoye-21 (M-21) well, and now has been extended approximately one kilometre to the east by the M-20 well.

Mikhail Afendikov, chairman and chief executive officer, stated: "The M-20 well has proven to be another significant producer on the Makeevskoye licence, and I am proud of our team. With the K-7 and M-16 wells near completion and testing stage, an aggressive 2013 drill program, and gas prices that continue near $12 per thousand cubic feet creating strong netbacks, I am confident we will continue to show first-rate results and to create value for our shareholders."

We seek Safe Harbor.