Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN) is pleased to provide an update on its operations in Romania and in particular the current status of the construction of the Moftinu Gas Development Project (the “Project”). This Project is slated to bring on gas production from the gas discovery wells Moftinu-1001 and Moftinu-1000 through the construction of a 15 mmcf/d gas plant, connecting well flowlines, and a sales gas pipeline connecting to the Transgaz national gas transmission system.
As previously announced on May 9, 2017, Serinus signed an Engineering, Procurement, Construction and Commissioning Contract (“EPCC”) with Confind S.R.L. (“Confind”), a Romanian company, for the construction of a gas processing facility and associated flowlines and pipelines for the Moftinu Gas Development Project. The contract is a turnkey EPCC Contract with a fixed price subject only to potential change orders that may be required. The project is on time and on budget. The project construction began shortly after the signing of the EPCC contract and to date the Company has achieved the following progress on the Project:
- Completed the construction of the flowlines from Moftinu 1001 and Moftinu 1000 wells;
- Completed the construction and connection of the 3-km sales gas pipeline from the location of the gas plant location to the delivery point on the Transgaz national gas transmission system;
- Completed the pouring of the foundation pad for the gas plant and all external power connections;
- Procured all long-lead items including the major components of the gas plant, pipelines, and flowlines. The Triethylene glycol dehydration (”TEG”) unit and the Low Temperature Separation (“LTS”) unit were ordered in July 2017 from AVAL Engineering, a Canadian company specialized in providing process equipment & project support. The delivery period was significantly optimized to conform with Company deadlines;
- Initiated an invitation to tender for the reactivation of the Moftinu 1001 and Moftinu 1000 wells to be conducted in October 2017; and
- Finalizing the detailed engineering and the local manufacturing of processing equipment has been initiated.
The remaining critical milestones are the delivery of the TEG and LTS units. These are currently under construction and are expected to be delivered to the Moftinu site by mid-December 2017. Once delivered, the units will be connected, to be followed by testing and commissioning of the gas plant for the receipt of final certification. The project remains on schedule for first gas in the first quarter of 2018. The Company will keep the markets apprised of any change to this expected timeline that may occur as the Project construction progresses.
As per previous announcements, the Addendum of December 21, 2016, which extended the Satu Mare Concession until 28 October 2019, included the following work commitments:
- Drill three exploration wells; or
- Drill two exploration wells and conduct a 3D seismic survey of at least 120 km2.
The Company submitted Request to Drill applications to the National Agency of Mineral Resources (“NAMR”) for two exploration wells: Moftinu 1003 and Moftinu 1004. Subsequently, NAMR issued the drilling permits for these wells. The land permitting stage has now been initiated. It is planned that these wells will be drilled in Q2 2018, thereby fulfilling two-thirds of the work commitments for the Addendum. With commercial success, production from these wells would be added to experimental production phase of the Moftinu Gas Development Project. After the drilling of these two wells, the Company will decide whether to drill a third exploration well or conduct a 3D seismic program to further identify potential exploration targets, with either decision fulfilling the Addendum work commitments.
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.
Vice President, External Relations & Strategy
|Serinus Energy Inc.
Chief Executive Officer
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.