Serinus Energy Inc.

Serinus Energy Inc.

November 12, 2013 06:15 ET

Serinus Energy Inc.: Brunei-Luba Well Commences Drilling

CALGARY, ALBERTA--(Marketwired - Nov. 12, 2013) - Serinus Energy Inc. (TSX:SEN)(WARSAW:SEN) ("Serinus" or the "Company"), an international upstream oil and gas exploration and production company, is pleased to announce that the Luba-1 exploratory well on Brunei Block L commenced drilling on 11 November 2013. The Luba-1 well is operated by AED Southeast Asia Limited ("AED SEA"), an indirect wholly-owned subsidiary of Serinus.

Luba -1 Well

Luba-1 is the second of two commitment wells to be drilled during the 2013 Brunei Block L Phase 2 drilling campaign. The well is planned to evaluate the hydrocarbon potential of the Triple Junction structure, within the Luba Fault Block south-west of the Lukut Updip-1 gas well drilled earlier this year.

The Luba Prospect was interpreted using the 2009 Tutong 3D seismic volume, and is planned to be drilled as a directional well to test a Direct Hydrocarbon Indicator ("DHI") or "Flat Spot" observed in the B horizon in the Luba Fault Block. Unlike Lukut Updip-1 which targeted deep water sand bodies contained within the Setap shale formation, the Luba prospect will target shoreface to near shore deltaic sandstones of Pliocene to Late Miocene age, which are the traditional exploration targets in Brunei. In addition to evaluating the primary target (B Horizon), the Luba-1 well will also evaluate the shallower R Horizon. Both horizons are located in interpreted trap position created by two extensional normal faults which form the Luba fault block. The primary B Horizon target, is expected to be encountered at a depth of approximately 2,802 metres measured depth (2,360 metres true vertical depth), and the well is expected to take approximately 35 days to drill. Formations are anticipated to be normally pressured.

Prospective Resources for the Luba prospect were estimated by independent reserve engineers RPS Energy Consultants Ltd. ("RPS") in their report dated 12 November 2012 and range between a High Estimate of 77 million barrels of oil equivalent ("MMboe") and a Low Estimate of 10 MMboe, with a Best Estimate of 32 MMboe. These estimated Prospective Resource volumes, which are un-risked and are for the net 90% interest of Serinus' in the Luba Prospect.

Serinus has a 90% interest in the Block L with indirect wholly-owned subsidiary Kulczyk Oil Brunei Limited having a 40% interest and indirect wholly-owned subsidiary AED SEA (operator) having a 50% interest. The remaining 10% interest is owned by a private Brunei company at arm's length to Serinus.

Cautionary Statement

There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources.

Defined Terms

"Prospective Resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.

"Low Estimate" is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities recovered will equal or exceed the low estimate.

"Best Estimate" is considered to be the best estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be a 50 percent probability (P50) that the quantities recovered will equal or exceed the best estimate.

"High Estimate" is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities recovered will equal or exceed the high estimate.

About Serinus Energy

Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Ukraine, Brunei, Tunisia, Romania and Syria and with a risk profile ranging from exploration in Brunei, Romania and Syria to production and development in Ukraine and Tunisia. The common shares of the Company trade under trading symbol "SEN" on both the WSE and the TSX.

In Ukraine, Serinus owns an effective 70% interest in KUB-Gas LLC through its 70% shareholding of KUBGas Holdings Limited. The assets of KUB-Gas LLC consist of 100% interests in five licences near to the City of Lugansk in the northeast part of Ukraine. Four of the licences are gas producing.

In Tunisia, Serinus owns a 100% working interest in the Chouech Es Saida, 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 Brunei, Serinus owns a 90% working interest in a production sharing agreement which gives the Company the right to explore for and produce oil and natural gas from Block L, a 1,123 square kilometre area covering onshore and offshore areas in northern Brunei.

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.

In Syria, Serinus holds a participating interest of 50% in the Syria Block 9 production sharing contract which provides the right to explore for and, upon the satisfaction of certain conditions, to produce oil and gas from Block 9, a 10,032 square kilometre area in northwest Syria. The Company has an agreement to assign a 5% ownership interest to a third party subject to the approval of Syrian authorities. Serinus declared force majeure, with respect to its operations in Syria, in July 2012.

The main shareholder of the Company is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.

For further information, please refer to the Serinus website (

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 of the Company or any of its subsidiaries and related to its interest in Brunei Block L and to certain wells drilled or to be drilled or seismic activities undertaken within that area 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.

Suite 1170, 700-4th Avenue SW,
Calgary, Alberta, Canada
Al Shafar Investment Building,
Suite 123, Shaikh Zayed Road,
Dubai, UAE
Nowogrodzka 18/29
00-511 Warsaw, Poland
+48 (22) 414 21 00

Contact Information

  • Serinus Energy Inc. - Canada
    Norman W. Holton, Vice Chairman
    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