Serinus Energy Inc.
TSX : SEN
WARSAW : SEN

Serinus Energy Inc.

April 03, 2014 07:50 ET

Serinus Energy Inc.: Tunisia Operations Update

CALGARY, ALBERTA--(Marketwired - April 3, 2014) - Serinus Energy Inc. (TSX:SEN)(WARSAW:SEN) ("Serinus", "SEN" or the "Company"), an international upstream oil and gas exploration and production company, is pleased to provide an update on its activities in Tunisia.

Sabria Drilling and Production Update

The well location for Winstar-12bis is now complete and work on the well location of Winstar-13 is underway (Note that the wells have previously been referred to as Sabria-12bis and Sabria-13). The drilling rig is scheduled to mobilize to the site in the middle of May.

The Sabria field is currently producing at a rate of 475 bopd and 1.29 MMcf/d (214 bopd and 0.58 MMcf/d SEN WI). The Company has been conducting a program of optimizing the choke size on the Sabria wells, beginning with Sab‐11, one of four wells producing in the Sabria field, and which began producing in 2007. Since early Q4 2013, the choke size has been increased in stages from 10/64" to 16/64" now, resulting in an overall increase in oil production from that well from 130 bopd to 180 bopd. The Company has expanded the test program to the other Sabria wells.

Coiled Tubing Workover - Chouech Es Saida

At the end of March, Winstar Tunisia BV ("Winstar Tunisia"), an indirect wholly-owned subsidiary of Serinus, mobilised a coil tubing unit to the Chouech Es Saida Concession to conduct a work on the CS-Sil-10 and CS-Sil-1 wells.

The work at CS-Sil-10, involves the suspension of production testing of the Triassic TAGI Sandstone and further evaluation of the deeper Silurian Tannezuft Sandstones. The CS-Sil-10 well was drilled in 2011 and tested in early 2012. Although crude oil, natural gas and condensate were recovered at surface, initial tests in the Tannezuft reservoirs were not conclusive, with build-up data indicating that hydrocarbon flow rates may benefit from further clean-up or stimulation. The well was then tested in the TAGI from which the well flowed gas and oil but mainly very salty water. At the time, Winstar believed the water influx was due to a bad cement bond above the TAGI and as a result conducted a cement squeeze in November 2012. Upon completion of the cement squeeze, the well flowed 1,000 bbl/d oil for a period of 40 hours but following this period, the zone continued to flow water. The current work program on this well includes closing the sliding sleeve over the TAGI, cleaning out sand and debris with the coiled tubing unit, pulling the tubing plug, then production testing the Tannezuft zone.

Following the CS-Sil-10 program, the coiled tubing unit will move to CS-Sil-1 which was drilled in 2010 and is currently producing from a Tannezuft reservoir at a rate of 0.5 MMcf/d of natural gas and 63 bbl/d of condensate. The planned workover of CS-Sil-1 Tannezuft includes the installation of a velocity string to lift additional volumes of condensate, plus opening up the sliding sleeves over two additional Silurian sections above the current producing zone. These two zones were tested in 2011 and flowed at 0.9 MMcf/d plus 100 bbl/d condensate and 0.88 MMcf/d plus 292 bbl/d condensate respectively. The Company expects that the aggregate production from all three zones will be less than the sum of these test rates as the velocity string will limit the overall capacity (although it will increase the proportion of condensate in the total stream).

Workover Rig to mobilise to Chouech Es Saida and Ech Chouech Concessions

Winstar Tunisia has signed a contract with Ulysse Petroleum Engineering for the use of Rig-01 in southern Tunisia. Rig-01 is a 750 horsepower self-propelled workover rig built in the United States in 2009 which has previously worked for such companies as OMV, Perenco and Chinook Energy. The campaign includes four wells within the Chouech Es Saida and Ech Chouech Concessions (CS-11, CS-8bis, EC-4, and ECS-1) which require various types of service. Successful execution of the workover program, expected to start in April, has the potential to add production, exploit new reserves and develop a new hydrocarbon play type.

3D Seismic Acquisition over Sanrhar Concession

Winstar Tunisia has signed a contract with Geofizyka Torun S.A. ("GT") to acquire 3D seismic data over the entire Sanrhar concession, located in the Ghadames Basin of southern Tunisia. Winstar Tunisia holds a 100% working interest in Sanrhar which currently produces 50-60 bbl/d of oil from one producing well, SNN-1, drilled in 1989 and which started producing in 1991. Although oil production is currently limited to the Triassic interval, confirmed hydrocarbon tests and oil/gas shows from abandoned wells within the block suggest that deeper Silurian, Ordovician and Cambrian sandstones may be prospective. The Sanrhar block is covered with a relatively sparse 2D seismic data that indicates a number of broad four-way structural closures which this new program will investigate more thoroughly. GT will acquire 203.5 square kilometres of full-fold 3D seismic data which will hopefully improve the imaging of these deeper prospective zones. The acquisition program is scheduled to start in early May and will last approximately 6-7 weeks.

About Serinus

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 (Warsaw Stock Exchange) 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 Essaida, 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.

In Romania, Serinus has a 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 which is subject to the approval of Syrian authorities, and which, if approved, would leave the Company with a remaining effective interest of 45% in Syria Block 9. 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 (www.serinusenergy.com)

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.

Suite 1170, 700-4th Avenue SW, Calgary, Alberta, Canada
Telephone: +1-403-264-8877
Al Shafar Investment Building, Suite 123, Shaikh Zayed Road, Dubai, UAE
Telephone: +971-4-339-5212
Nowogrodzka 18/29, 00-511 Warsaw, Poland
Telephone: +48 (22) 414 21 00

Contact Information

  • Serinus Energy Inc. - Canada
    Norman W. Holton
    Vice Chairman
    Tel.: +1-403-264-8877
    nholton@serinusenergy.com

    Serinus Energy Inc. - Canada
    Gregory M. Chornoboy
    Director - Capital Markets & Corporate Development
    Tel: +1-403-264-8877
    gchornoboy@serinusenergy.com

    Serinus Energy Inc. - Poland
    Jakub J. Korczak
    Vice President Investor Relations & Managing Director CEE
    Tel.: +48 22 414 21 00
    jkorczak@serinusenergy.com