Cub Energy's indirectly held 30% subsidiary, KUB-Gas LLC (KUB-Gas), has made a prepayment to the European Bank for Reconstruction and Development (EBRD) in the amount of USD 10.0 million under the terms of the EBRD loan agreement (Loan). KUB-Gas will also make a regularly scheduled principle payment in the amount of USD 935,897 on January 15, 2013. Following these repayments, the outstanding balance of the EBRD loan after January 15, 2013 will be USD 10,294,872.

The Loan, initially for an amount of up to USD 40 million, was signed in May 2011 with the funds therefrom intended to finance the ongoing development of additional production from KUB-Gas' Vergunskoye, Olgovskoye, Makeevskoye and Krutogorovskoye fields in the Lugansk region of Ukraine. The first tranche of the Loan in the amount of US 23.0 million was fully drawn. However, with consistently strong production and financial performance from KUB-Gas' producing properties, the second tranche of USD 17.0 million was never drawn. The USD 10.0 million prepayment on the first tranche was made from KUB-Gas' internally generated funds.

Tags: CUB Energy Inc.