Serinus Energy Inc.
TSX : SEN
WARSAW : SEN

Serinus Energy Inc.

November 04, 2014 07:54 ET

Serinus Energy Inc.: Tunisia: Winstar-12bis Preliminary Results

CALGARY, ALBERTA--(Marketwired - Nov. 4, 2014) - Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN) is pleased to report preliminary results from the Winstar-12bis ("WIN-12bis") well.

The well has reached its total depth of 3,855 metres. The presence of hydrocarbons was initially confirmed by fluorescence exhibited in the recovered core and drilling cuttings, and subsequently with open hole wireline logs. Early analysis of the data acquired from electric logs, full diameter core and drilling records indicate that the well has encountered 79 metres of oil bearing reservoir in the Upper Hamra, Lower Hamra and El Atchane formations, above an oil to water transition zone present throughout the lower zones in the well. Average reservoir porosity is 10%. An additional 14 metres of oil bearing reservoir have been identified within the transition zone, and the nuclear magnetic resonance tool has also unexpectedly indicated moveable oil below the base of the transition zone. Further testing will be required to understand the nature of the hydrocarbons in these lower sections. The well is being completed, after which the rig will move immediately to Winstar-13 ("WIN-13"). Once the rig is off location, WIN-12bis will be put on an extended production test.

During drilling, 23 metres of core were cut and recovered from the Azel and Upper Hamra zones at depths between 3,688 - 3,715 metres, after which drilling resumed to total depth and the well was logged. The core samples showed fluorescence, indicating the presence of hydrocarbons in the Upper Hamra reservoir. Due to a combination of certain characteristics of the formation and reservoir fluid composition, a detailed petrophysical analysis was required to determine the thickness and porosity of the reservoir zones. That analysis was completed on November 1, 2014, and will be updated and adjusted based on production testing and the final core results. The full core analysis is expected to take up to two months to complete.

The logs are comparable to wells previously drilled in the Sabria Field, and indicate that the well has its best developed porosity in the Lower Hamra formation between 3,728 - 3,760 metres. Logs also confirm that this well contains the full Upper Hamra, Lower Hamra and El Atchane reservoir sections -other wells have had the Upper and Lower Hamra partially or wholly eroded. WIN-12bis is also the highest structural penetration of the reservoir section in the Sabria Field thus far, some 41 metres higher than Sabria-N3, the next highest in the field.

A fracture system was detected in the Upper Hamra by drilling breaks and lost circulation during coring, and was subsequently confirmed by the imaging log.

The well has been plugged back to 3,784 metres, and is being completed for open hole production testing. Once the rig has moved off, WIN-12bis will be tied into the recently constructed flowline and placed on production through the Sabria Central Processing Facility. Testing will continue during the drilling and completion of WIN-13, which is expected to take 73 days. If production and pressure data from the test so dictate, the rig may be brought back to WIN-12bis to drill a horizontal leg.

Jock Graham, Executive Vice President and Chief Operating Officer of Serinus said "Winstar-12bis is the first well drilled by Serinus in Tunisia since the Winstar acquisition, and initial drilling and log results look promising. However, we still need to establish how the well will perform once on production and to this end, we are completing the well in order to undertake a production testing program. We also experienced some delays while drilling this well due primarily to equipment failures associated with the rig, however those issues have been rectified and we anticipate better drilling productivity on Winstar-13, which will spud immediately after WIN-12bis is completed and the rig move finished."

Abbreviations

bbl Barrel(s) bbl/d Barrels per day
boe Barrels of Oil Equivalent boe/d Barrels of Oil Equivalent per day
Mcf Thousand Cubic Feet Mcf/d Thousand Cubic Feet per day
MMcf Million Cubic Feet MMcf/d Million Cubic Feet per day
Mcfe Thousand Cubic Feet Equivalent Mcfe/d Thousand Cubic Feet Equivalent per day
MMcfe Million Cubic Feet Equivalent MMcfe/d Million Cubic Feet Equivalent per day
Mboe Thousand boe Bcf Billion Cubic Feet
MMboe Million boe Mcm Thousand Cubic Metres
UAH Ukrainian Hryvnia USD U.S. Dollar
CAD Canadian Dollar

Cautionary Statement:

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.

About Serinus

Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Ukraine, Tunisia, Romania, Brunei 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 the City of Lugansk in the northeast part of Ukraine. Four of the licences are capable of gas production, although two are currently shut in due to security issues in the area.

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 Romania, Serinus has a 60% working interest in the onshore Satu Mare concession, a 2,949 square kilometre exploration and development block, in the northwestern portion of the country.

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.

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. 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 1500, 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