May 6, 2014 – Cub Energy Inc. (“Cub” or the “Company”)(TSX-V:KUB) a Black Sea region-focused upstream oil and gascompany, announces that the S7 zone in the Makeevskoye-17 (“M-17”) well testedgas at a rate of over 0.9 million cubic feet per day (“MMcf/d”) through a sevenmillimetre choke.

The M-17 well is operated by KUB-Gas LLC, apartially-owned subsidiary in which Cub has a 30% effective ownership interestthrough its 30% shareholding of KUBGAS Holdings Limited. 

Makeevskoye-17 Well

In March 2014, Cub announced that wireline logs indicated9 metres of net gas pay in the S6, 2.5 metres of net pay in the S5 carbonates,and resource potential in the R30c and S7 sands. The Company has not producedthe S7 sand previously and thus Cub has no reserves for the zone. It wasbelieved that the M-17 well’s 5.5 metres of net pay in the S7 would requirestimulation to get a commercial flow rate from the zone.

Cub plans to perform a dual completion on the M-17 as aproducer in the S6 and S7 zones, with the S7 producing unstimulated. Currently,the Company’s snubbing unit, required for dual completions, is performingoperations on its O-4 well. The M-17 well will be suspended until the snubbingunit arrives on location. Once the subbing unit is on location,the Company willset a bridge plug above the S7, and will perforate and test the S6 zone, whichis 45 metres above the S7 and the primary target of the M-17 well. 

The S7 discovery is still being considered forstimulation and remains in the Company’s fracture stimulation campaignscheduled for October this year.

Gas samples taken during testing indicate that the gashas a carbon dioxide (“CO2”) content of 8.8% and a heating value of 6,960kilocalories per cubic metre (“kcal/m3”).

While this is below the sales gas pipeline specificationof 7,600 kcal/m3  and 2% CO2, it can beblended with production from the Makeevskoye and Olgovskoye fields and theresulting blend will meet or exceed all pipeline requirements. The Company isconfident that the gas composition will not pose any material issues indevelopment.

The M-17 well was drilled to a total depth of 3,475metres to appraise the new pool gas discovery made in the S6 sandstone by theCompany’s Makeevskoye-16 (“M-16”) well,

which is currently producing at a rate of 3.9 MMcf/d (1.2MMcf/d net to Cub). The M-17 is located about one kilometre to the northwest ofthe M-16 well and within the same structural closure.

About Cub Energy Inc. 

Cub Energy Inc. (TSX-V: KUB) is an upstream oil and gascompany, with a proven track record of exploration and production costefficiency in the Black Sea region. The

Company’s strategy is to implement western technology andcapital, combined with local expertise and ownership, to increase value in itsundeveloped land base, creating and

further building a portfolio of producing oil and gasassets within a high pricing environment. 

For further information please contact us or visit ourwebsite: www.cubenergyinc.com 

Mikhail Afendikov

Chairman and Chief Executive Officer

(713) 677-0439

mikhail.afendikov@cubenergyinc.com

Lionel C. McBee

Director of Investor Relations

(713) 577-1955

lionel.mcbee@cubenergyinc.com 

Reader Advisory

Except for statements of historical fact, this newsrelease contains certain “forward-looking information” within the meaning ofapplicable securities law. Forward-looking information is

frequently characterized by words such as “plan”,“expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and othersimilar words, or statements that certain events or

conditions “may” or “will” occur. Cub believes that theexpectations reflected in the forward-looking information are reasonable;however there can be no assurance those

expectations will prove to be correct. We cannotguarantee future results, performance or achievements. Consequently, there isno representation that the actual results achieved will be the same, in wholeor in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions andestimates of management at the date the statements are made, and are subject toa variety of risks and uncertainties and other factors that could cause actualevents or results to differ materially from those anticipated in theforward-looking information. Some of the risks and other factors that couldcause the results to differ materially from those expressed in theforward-looking information include, but are not limited to: general economicconditions in Ukraine, the Black Sea Region and globally; industry conditions,including fluctuations in the prices of natural gas; governmental regulation ofthe natural gas industry, including environmental regulation; unanticipatedoperating events or performance which can reduce production or cause productionto be shut in or delayed; failure to obtain industry partner and other thirdparty consents and approvals, if and when required; competition for and/orinability to retain drilling rigs and other services; the availability ofcapital on acceptable terms; the need to obtain required approvals fromregulatory authorities; stock market volatility; volatility in market pricesfor natural gas; liabilities inherent in natural gas operations; competitionfor, among other things, capital, acquisitions of reserves, undeveloped lands,skilled personnel                     

and supplies; incorrect assessments of the value ofacquisitions; geological, technical, drilling, processing and transportationproblems; changes in tax laws and incentive

programs relating to the natural gas industry; failure torealise the anticipated benefits of acquisitions and dispositions; and theother factors. Readers are cautioned that this list of risk factors should notbe construed as exhaustive. 

This cautionary statement expressly qualifies theforward-looking information contained in this news release. We undertake noduty to update any of the forward-looking information to conform suchinformation to actual results or to changes in our expectations except asotherwise required by applicable securities legislation. Readers are cautionednot to place undue reliance on forward-looking information. 

Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of this release.