Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”), is pleased to announce the final closing of the sale of its interests in Ukraine to Resano Trading Ltd., an affiliate of the Burisma Group, a Ukraine entity actively involved in the upstream oil and gas industry in Ukraine.
Serinus sold all of the 70% of the outstanding shares of KUB-Gas Holdings Limited (“KHL”) owned by the Company. KHL in turn, owns 100% of the shares of KUB-Gas LLC (“KUB-Gas”). KUB-Gas (directly and indirectly through its subsidiary, KUB-Gas Borova LLC) owns 100% of and operates the six licences/permits in Ukraine which contain the Olgovskoye, Makeevskoye, Vergunskoye and
Krutogorovskoye gas fields. KUB-Gas was assigned gross 2P reserves of 64.5 Bcf and 459 Mbbl of NGL’s (45.1 Bcf and 321 Mbbl SEN WI)1 at December 31, 2014. Estimated gross production in Q4 2015 was 22.9 MMcfe/d (16.0 MMcfe/d SEN WI), of which 98% was natural gas.
The effective date of the sale was December 31, 2015. Serinus received total cash consideration of
$32.8 million including all working capital and inter-company adjustments. Subsequent to closing, the Company will repay a total of $19.2 million of debt and accrued interest to the European Bank for Reconstruction and Development against its Tunisia and Romania credit facilities. The balance of the proceeds will be used to help fund development of the Moftinu gas discovery in Romania.
Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia, and Romania.
For further information, please refer to the Serinus website (www.serinusenergy.com) or contact the following:
|Serinus Energy Inc. – Canada
Norman W. Holton
|Serinus Energy Inc. – Canada
Gregory M. Chornoboy
Director – Capital Markets & Corporate Development
|Serinus Energy Inc. – Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
Tel.: +48 22 414 21 00
Translation: This news release has been translated into Polish from the English original.
Forward-looking Statements This release may contain forward-looking statements made as of the date of this announcement with respect to future activities that either are not or may not be historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, any potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors that could impair or prevent the Company from completing the expected activities on its projects include that the Company’s projects experience technical and mechanical problems, there are changes in product prices, failure to obtain regulatory approvals, the
As per independent 3rd party reserve evaluator as at December 31, 2014 state of the national or international monetary, oil and gas, financial , political and economic markets in the jurisdictions where the Company operates and other risks not anticipated by the Company or disclosed in the Company’s published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties and actual results may vary materially from those expressed in the forward-looking statement. The Company undertakes no obligation to revise or update any forward-looking statements in this announcement to reflect events or circumstances after the date of this announcement, unless required by law.