Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN) is pleased to provide the following update for its operations for the third quarter of 2016.
Third Quarter Production and Realized Prices
Overall production for Q3 was 1,007 boe/d, 17% lower than the 1,206 boe/d in Q2 2016 and 25% lower than the 1,336 boe/d in Q3 2015. Oil averaged 787 bbl/d, and gas was 1.3 MMcf/d. The decrease vs. the prior quarter was due to pump failures on the CS-3 and CS-1 wells in Chouech Es Saida for aggregate downtime of 78 days as parts had to be sourced from outside the country. CS-3 and CS-1 resumed production in early September and early October respectively. Estimated realized prices during the quarter were $43.17/bbl and $4.53/Mcf.
Production for October to date has averaged approximately 1,214 boe/d, comprised of 889 bbl/d of oil and 1.95 MMcf/d of natural gas.
Note: the volumes and prices referred to above are subject to minor revisions once final allocations and invoices are received.
The Company’s focus remains on reducing costs wherever possible while maintaining existing production in Tunisia. The 2016 budget will be re-examined on an ongoing basis in the event that management becomes confident that current oil prices can be sustained, and that funding is available to recommence drilling.
In Romania, Serinus will concentrate on moving the Moftinu-1001 discovery into the experimental production phase, pending ratification of the Phase 3 extension of the Satu Mare Licence.
The Company is examining several alternatives for funding the development activities in both Romania and Tunisia.
About the Company
Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Tunisia and Romania. The common shares of the Company trade under trading symbol “SEN” on both the WSE (Warsaw Stock Exchange) and the TSX.
In Tunisia, Serinus owns a 100% working interest in the Chouech Essaida, Ech Chouech, Sanrhar and Zinnia concessions, and a 45% working interest in the Sabria concession. Four of the concessions are currently producing oil or gas.
In Romania, Serinus owns an undivided 60% working interest in the onshore Satu Mare concession, a 2,949 square kilometre exploration and development block, in north western Romania.
The main shareholder of the Company is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.
This press release contains certain statements relating to Serinus that are based on the expectations of Serinus, as well as assumptions made by, and information currently available to, Serinus, which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Serinus anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as “forecast”, “future”, “may”, “will”, “expect”, “anticipate”, “believe”, “potential”, “enable”, “plan”, “continue”, “contemplate”, “pro-forma”, or other comparable terminology. In particular, this press release makes reference to the timing and listing of the Company’s common shares on the TSX, resumption of trading on the Warsaw Stock Exchange and the anticipated increased working interest in the Satu Mare concession. Readers are cautioned that such events are subject to certain conditions being satisfied. Accordingly, there is no assurance that such conditions will be satisfied and therefore no assurance that the TSX listing, resumption of trading and increased working interest will be obtained in the time frames anticipated or at all. Many factors could cause the performance or achievement by Serinus to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include the failure to satisfy the TSX listing conditions and to resume trading on the Warsaw Stock Exchange in a timely manner, failure to satisfy the conditions to obtain the increased interest in the Satu Mare concession, risks relating to the integration of Serinus and Winstar, the failure to realize anticipated synergies and incorrect assessments of the value of Winstar. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Serinus is not under any duty to update any of the forward-looking statements after the date of this press release or to conform such statements to actual results or to changes in the Company’s expectations and Serinus disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Suite 1500, 700-4th Avenue S.W., Calgary, Alberta, Canada
00-511 Warsaw, Poland
Telephone: +48 (22) 414 21 00