Serinus Energy-Third Quarter Operations Update

CALGARY, ALBERTA--(Marketwired - Oct. 10, 2014) - Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN) is pleased to provide the following update for its third quarter operations.

Third Quarter Production and Realized Prices

Average corporate production for the third quarter was 5,696 boe/d (SEN WI), representing a 15% increase from 4,964 boe/d in the second quarter. Production for the first 8 days of October to date has averaged 5,821 boe/d.

Gas and condensate production in Ukraine during the third quarter were 26.3 MMcf/d and 86 bbl/d respectively (both volumes are SEN's 70% WI). These volumes are 23% higher and 15% lower than the second quarter. The increase is due substantially to the M-17 well which averaged 11.9 MMcf/d (8.3 MMcf/d SEN WI) during the quarter.

Production in Ukraine for October to date has averaged 37.4 MMcf/d and 121 bbl/d (26.2 MMcf/d and 85 bbl/d SEN WI). This is 24% above 2013 exit production. KUB-Gas LLC ("KUB-Gas"), Serinus' indirectly owned 70% subsidiary, is the owner and operator of the Ukrainian licences.

The estimated prices received in Ukraine during the quarter were $10.16/Mcf and $81.47/bbl for natural gas and liquids respectively. The gas price was marginally lower than the $10.23/Mcf realized in Q2 2014. Gas sold in Ukraine by KUB-Gas is based on the import price of Russian gas, which in turn is linked to the price of oil. KUB-Gas is paid in UAH, making its realized price in USD also subject to exchange rate risk.

Overall production in Tunisia for Q3 was 1,183 boe/d, 9% lower than the 1,301 boe/d in Q2. Oil averaged 889 bbl/d, and gas was 1.7 MMcf/d. Estimated realized prices during the quarter were $99.54/bbl and $14.56/Mcf. There was one tanker lift of oil during Q3.

Tunisia production for October to date has averaged 1,379 boe/d, comprised of 1.9 MMcf/d of natural gas and 1,055 bbl/d.

Note: the volumes and prices referred to above are subject to minor revisions once final allocations and invoices are received.

Drilling & Workover Update

As disclosed in our press release of October 2, 2014, KUB-Gas has resumed drilling activities in its Makeevskoye licence with the spud of the M-22 well. The primary target in M-22 is the S6 zone in the Serpukhovian section which has proven very prolific in the M-16, M-17 and O-15 wells. Total time to drill, test and complete is expected to be approximately 80 days. This is the first well of five currently contemplated, with additional drilling to be determined after management and the Board of Directors approve the 2015 capital budget, expected in December.

In Tunisia, the Winstar-12bis well ("Win-12bis") in the Sabria was spud on July 17, 2014, and has reached 3,681 metres. Progress has been slower than anticipated due substantially to rig breakdowns in late August/early September, and early October. The intermediate casing is being run, after which drilling will resume to the planned total depth of 3,840 metres, which is anticipated to take until the end of October. Once drilling is complete, the rig will move to the Winstar-13 ("Win-13") location. Both wells are targeting the Hamra and El Atchane formations currently producing in other wells in the Sabria field.

In Ech Chouech, both the EC-4 and ECS-1 wells were worked over to remove debris left in the wellbores by previous operators, and perforated in the Devonian Ouan Kasa formation. Operations to fracture stimulate ECS-1 have commenced, and the frac' spread will move to EC-4 immediately thereafter. Both wells will subsequently be flow tested to tanks on site.

The CS-8bis well in Chouech Es Saida was worked over to replace the downhole pump, and it will be restarted once the workover rig is moved off. Another workover is underway on CS-11 to replace the existing rod pump with an electric submersible pump.

Ukraine Outlook

Following M-22, the other four currently planned wells are M-15, NM-4, M-24, and M-25. M-15 is a development well targeting the S5, S6 and S7 zones discovered and appraised by the M-16 and M-17 wells. M-24 and M-25 are potential appraisal/development locations to M-22. The NM-4 well, an exploration well that will test a Moscovian stratigraphic play, had reached a depth of 102 metres in June prior to the cessation of the Company's drilling and workover activities in the area. If successful, NM-4 would validate a new play type and potentially expand KUB-Gas' drilling inventory significantly.

A fracture stimulation campaign previously planned in October for O-11 and O-15 (both R30c and S6 zones), NM-3 (Visean oil potential) and M-17 (S7) has been deferred to 2015.

The official gas price for the month of October is 4,874 UAH per Mcm (excluding 20%VAT), or $10.62/Mcf using an exchange rate of 13 UAH/USD. The actual price received by KUB-Gas will be approximately 4% - 5% less for the profit margin of the intermediaries through which the gas is sold. It will also continue to be influenced by changes in the exchange rate. During the month of September, that rate fluctuated between 12.35 and 14.40 UAH/USD.

Tunisia Outlook

Win-12bis is expected to reach its planned total depth by the end of October, after which the rig will move to Win-13. Win-12bis will be tied into the flowline following rig release, and put on an extended production test during the drilling of Win-13. Depending on the results achieved, the Company may elect to have the rig return to Win-12bis and drill a horizontal leg.

After an anticipated rig move of 3 - 4 weeks, Win-13 is expected to take approximately 90 days to reach its planned total depth of 3,860 metres. The plan is currently to drill a vertical well, but does contain provisions to drill a horizontal leg, depending partly on the interim production data from Win-12bis. Drilling time for the horizontal leg will be incremental to the 90 days mentioned above. Win-13 will also have a flowline ready once the rig is released, so testing and production will commence shortly thereafter.

As mentioned above, stimulations on EC-4 and ECS-1 are now underway. If these result in commercial production rates, the Company believes that there may be significant potential across the Ech Chouech and Chouech Es Saida permits as electric logs show good correlation of the Ouan Kasa in 8 wells, 7 of which had either oil shows or production tests. The EC-4 well tested 490 bbl/d of oil from the unstimulated Ouan Kasa in 1981, but was never completed for production.

A 203.5 km² 3D seismic program over the Sanrhar field was completed on August 20^th. Legacy sparse 2D data indicates a number of four-way structural closures which this program will investigate more thoroughly. Current production from Sanrhar is 50 - 60 bbl/d of oil from a single well, which has produced 421 Mbbl of oil to the end of 2013. Processing and interpretation is expected to be finished in Q1 2015.

Romania Outlook

This year's program includes two exploration wells and 180 km² of 3D seismic. The two wells, Moftinu-1001 and 1002bis, will be drilled back to back, with the spud of the first well expected at the beginning of November this year. The two wells are expected to take approximately 45 days to drill and case, including time for the rig move between the two locations. Both are targeting Pliocene/Miocene aged channel sands at a depth of approximately 1,800 - 2,000 metres, which have been identified on 3D seismic. Pending success, completion and testing of both wells is anticipated during Q1 2015. A previous well, Moftinu-1000, drilled in 2012 without the benefit of the 3D data, encountered gas but was subsequently found to be at the edge of the structural closure.

Shooting of the new 3D seismic program also commenced in mid-September, and is expected to take 6 - 8 weeks. The survey area covers 180 km² located approximately 35 km southwest of the Moftinu field against the western boundary of the Satu Mare concession. This area is in a well-established hydrocarbon fairway on the edge of the Carei graben, and overlies the Santau oil pool.

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, 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.

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