CALGARY, ALBERTA--(Marketwired - Oct. 29, 2013) - 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 report that the Olgovskoye-24 ("O-24") well has been cased to total depth ("TD") as a potential gas producer. The O-24 well is operated by KUB-Gas LLC ("KUB-Gas"), a partially-owned subsidiary in which Serinus has an effective 70% ownership interest through its 70% shareholding of KUBGas Holdings Limited.
The O-24 well commenced drilling in August with an original planned TD of 2,900 metres with the principal target being the Bashkirian B6 zone. During the course of the drilling it was decided to deepen the well to penetrate the Serpukhovian as the Company believed that the zone discovered in the O-15 well extended to the northwest. Consequently the O-24 well was drilled to a final TD of 3,300 metres and logged. The logs indicate 15 metres of potential pay in 4 different zones within the Bashkirian and Serpukhovian. Production testing of the well is scheduled to occur prior to year end. The main target of the well, the B6 sandstone currently producing in the O-12 well, was encountered at a depth of 2,285 metres with a gross thickness of 22 metres and with 5 metres of gas pay interpreted on logs. The S6 zone, encountered at a depth of 3,162 metres, is also sandstone with a gross thickness of 10 metres and with 3.5 metres of gas pay interpreted on logs. In addition potential pay was interpreted on the logs in the R30c and the B4b zones. The O-24 well is located approximately 1 kilometre to the northwest of the Olgovskoye-12 well, a B6 zone gas discovery which reached TD in September 2011 and which is currently producing more than 3.5 million cubic feet per day ("MMcf/d") (2.45 MMcf/d net to Serinus' 70% interest).
The KUB-Gas owned drilling rig, that was used to drill the O-24 well, will now be moved approximately 14 kilometres to the southeast to drill the Makeevskoye-17 ("M-17") well, which will be drilled to a target depth of 3,450 metres to evaluate the gas potential of the Serpukhovian S5 and S6 zones. The M-17 well location is about 1 kilometre to the northwest of Makeevskoye-16 ("M-16"), the deepest well drilled on the Makeevskoye Licence to date. M-16 was drilled to a TD of 4,300 metres in the third and fourth quarter of 2012 and subsequently tested gas from the S6 zone at a maximum rate of 4.3 MMcf/d (3 MMcf/d net to Serinus' 70% interest). The M-16 well was tied-in for commercial production in June 2013 and current production from the S5 zone is more than 3.6 MMcf/d (more than 2.5 MMcf/d net to Serinus' 70% interest).
Jock Graham, Executive Vice President & Chief Operating Officer of Serinus said - "This well looks like it will extend the limit of the productive area of the Olgovskoye Field and will provide incremental production for the project. The exploration of the deeper Serpukhovian zones continues to deliver positive results and we'll be looking to continue to follow-up on our recent Serpukhovian discoveries."
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 (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 of the Company or any of its subsidiaries and related to its interest in Ukraine and to certain wells within the Olgovskoye and Makeevskoye Licence areas 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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