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The limited liability company KUB-GAS was incorporated in the city of Lugansk, Lugansk region, Ukraine on January 13, 2000. The main lines of business activities are the following: geology and geological exploration; natural gas and gas condensate production, treatment, transportation, processing; oil and gas production and processing services; gas distribution and supply.
The KUB-GAS, Ltd. has the following Special Permits and Licenses: Mineral prospecting and exploration activity (valid till 2010); Natural gas supply at a nonregulated (market) rate (valid till 2011); and some other.

In July 2007 the Kub-Gas, Ltd. produced 11.9 million m3 of gas and 700 tons of gas condensate that is 119% more than in July 2006.

As far as a growth rate is concerned, the Kub-Gas, Ltd. has been taking the leading place for more than 6 months amongst the companies of the oil and gas industry in Ukraine.

The company takes the third place amongst private oil and gas companies having a 13% share of the private market of gas production in Ukraine.

The company has some unique marketing advantages:
• all the wells and technological equipment are privately owned by the company (unlike leased wells and well used under joint operation and production-sharing agreements);
• as opposed to the competitors, the company develops new fields with large hydrocarbon reserves rather than operates the fields which were started to be worked in 70-80s of the last century;
• economically advantageous geographical location – in close proximity to the bulk gas consumers;
• the company is not large, that is why it can be easily reorganized in line with market demands.

The short-term company development program (for 2008) includes:
1. Construction of 5 production wells and 1 investigation well. We plan to drill wells using our own drilling party and drilling equipment.
2. Increase of gas production up to 20-25 million m3 of gas and 1200 tons of gas condensate per month.
3. Beginning of geological and geophysical investigations of the two additional promising areas.
4. Construction of a gas-processing plant. Production (from the second half of 2007) of additional 1000 tons of propane and butane per month.
5. Introduction of international management and cost accounting standards at the company.
6. Obtaining ISO 9000, ISO 14000, OHSAS 18000.

The company balance-sheet value is 15 million USD as of July 1, 2007.

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