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.
Aaron LeBlanc, Vice President of Exploration, has left the Company to pursue other opportunities. Mr. LeBlanc was promoted to Vice President in March 2014, and had worked for Serinus since 2011. The Company wishes him all the best in his new endeavors.
Note: Serinus reports in US dollars. All dollar amounts referred to herein are in USD, unless specifically noted otherwise.
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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.