Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN) is pleased to announce that the National Agency for Mineral Resources (“NAMR”), the Romanian regulator, has granted its final approval for the Phase 3 Extension Addendum (the “Addendum”) for the Satu Mare License (“Satu Mare”) in northwest Romania. Satu Mare contains the Moftinu natural gas discovery made by the Company in 2015 and the rest of the block has significant exploration potential. This Addendum will allow Serinus to proceed with development of that discovery and to advance its exploration efforts.
The work commitments associated with the Addendum include drilling two wells, and at the Company’s option, either a third well, or the acquisition of 120 km2 of new 3D seismic. The term is for three years beginning retroactively to May 28, 2015, the date that the Company originally applied for
the extension. Serinus will immediately apply for a further extension owing to the delay in receiving the approval.
The Company owns a 60% interest in Satu Mare. The owner of the remaining 40% (the “Partner”) elected not to participate going forward, and Serinus is in discussions with the Partner and various government agencies including NAMR to ensure that it ultimately receives that interest.
The Moftinu gas discovery was made with the Moftinu-1001 well, which was drilled in November 2014 and tested 7.4 MMcf/d and 19 bbl/d of condensate in March 2015. Serinus’ independent reserve evaluator assigned 10.7 Bcfe of risked 2C contingent resources (12.9 Bcfe unrisked) at year end 2015. The Company has conducted certain engineering studies and preliminary design work with respect to the requisite surface facilities and development wells, and will now be able to advance those efforts with the granting of the Addendum.
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|Mcfe||Thousand Cubic Feet Equivalent||Mcfe/d||Thousand Cubic Feet Equivalent per day|
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Note: Serinus reports in US dollars. All dollar amounts referred to herein are in USD, unless specifically noted otherwise.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Test results are not necessarily indicative of long-term performance or of ultimate recovery. The test data contained herein is considered preliminary until full pressure transient analysis is complete.
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 Gregory M. Chornoboy Director – Capital Markets
& Corporate Development Tel: +1-403-264-8877
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 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.