Serinus Energy Inc.
TSX : SEN
WARSAW : SEN

Serinus Energy Inc.

September 29, 2014 06:20 ET

Serinus Energy Inc.-Ukraine: Impact of New Ukrainian Banking Regulations

CALGARY, ALBERTA--(Marketwired - Sept. 29, 2014) - Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN), comments on the potential impact of a new regulation announced by the National Bank of Ukraine.

The Management Board of the National Bank of Ukraine (the "Bank") announced Resolution No. 591 ("Resolution 591") on September 22, 2014, which prohibits several types of foreign exchange transactions including among other things, the ability of KUB-Gas LLC ("KUB-Gas"), Serinus' 70% indirectly owned subsidiary which owns and operates the Ukraine licences, to pay dividends to its shareholders. Details regarding the practical administration of these new regulations have not yet been provided, and Serinus and its partners will continue to monitor and study new information as it becomes available. These restrictions are in force from September 23, 2014 until December 2, 2014.

Assuming that Resolution 591 expires after December 2nd, Serinus does not anticipate any major difficulties arising from it. The Company has sufficient cash, debt facilities and cash flow from its Tunisian operations to carry on its intended capital and operating programs for the rest of 2014.

If these restrictions on foreign exchange are renewed or extended beyond December 2nd, it may impact the 2015 capital program which is currently being planned. Total cash flow from Ukraine exceeds KUB-Gas' ability to redeploy in its Ukrainian licences. A continued ban on foreign exchange transactions would result in the build-up of idle cash balances within the country.

Tim Elliott, Serinus' President and CEO said "While we are mindful of the difficult geopolitical and economic situation in Ukraine, we are disappointed in these new currency restrictions. They may offer limited short term relief in the exchange rate, but in the long run, we believe the real solution lies in growth through economic reforms and encouragement of foreign direct investment such as that Serinus has provided since 2010. These currency restrictions will ultimately discourage further investment if capital providers believe they will not be able to realize the associated returns. We are hopeful that the political and security situation continues to improve and that the government and the Bank are able to move to more growth oriented policies in the near future."

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

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 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.

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Telephone: +1-403-264-8877
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Telephone: +971-4-339-5212
Nowogrodzka 18/29, 00-511 Warsaw, Poland
Telephone: +48 (22) 414 21 00

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