CALGARY, ALBERTA--(Marketwired - March 11, 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 announce that its indirect wholly-owned subsidiary, Winstar Tunisia B.V. ("Winstar Tunisia"), has signed a drilling contract with Pergemine Tunisie S.A.R.L ("Pergemine") a subsidiary of Pergemine S.p.A., a drilling company based in Parma, Italy, for the use of a 2,000 horsepower IDECO-E2100 drilling rig for the Company's 2014 drilling campaign at the Sabria Field. The spud date of the first well, Winstar-12bis, is anticipated in late May 2014.
The Sabria Field, located in west-central Tunisia, is a mixed structural-stratigraphic feature north of the regional Telemzane arch in the prolific Ghadames Basin of central Tunisia and is east-west trending. While the Sabria Field was discovered in 1979, only 6 wells have been drilled in to the field to date, 4 of which were drilled between 1979 and 1983. The Sabria Field began producing in 1998, and as at December 31, 2013 had produced 4.54 million barrels. Current production is 648 barrels of oil equivalent per day ("boe/d") of 42° API gravity oil and associated gas (291 boe/d Winstar Tunisia) from 4 wells. The P50 volumetrically derived estimate of Original Oil-in-Place ("OOIP") at Sabria is 347 million stock tank barrels ("MMstb") (156 MMstb Winstar Tunisia) according to RPS Energy Canada, in a report made for the Company effective December 31, 2012. Recovery to date from the Sabria field has been just over 1% of OOIP.
The drilling rig is currently in Gabes, Tunisia, approximately 175 kilometres to the northeast of Sabria preparing for its mobilization to the Winstar-12bis location. It is estimated that the rig will arrive at the Winstar-12bis location in early May. Winstar-12bis will be drilled to a depth of 3,830 metres to evaluate the Lower Ordovician Hamra and El Atchane sandstone reservoirs and will be drilled at a location approximately 1.9 kilometres southwest and ~80 metres updip from Sabria Nord-1 (1979) which tested oil at a rate of 930 barrels of oil per day ("bopd"), but was never produced.
Upon completion of Winstar-12bis, the drilling rig will be moved 2.5 kilometres southwest to drill the Winstar-13 well. Winstar-13, which is expected to be drilled vertically to a depth of approximately 3,830 metres, will also evaluate the potential of Lower Ordovician Hamra and El Atchane sandstone reservoirs. It is located 3 kilometres southeast and ~25 metres updip of Sabria Nord-3 which, as of December 31, 2013, has produced approximately 286 Mstb of oil and 798 million cubic feet ("MMcf") of gas.
Major contracts for other services required to execute the 2014 drilling program are in various states of technical and commercial tender evaluation, with a number of service contracts having been awarded. The Winstar-12bis location has been surveyed, the geotechnical evaluation of the site completed, and construction of the location is underway.
Serinus, through Winstar Tunisia, owns a 45% working interest in the Sabria concession, which gives the Company the right to explore for and produce oil and natural gas from a 104 square kilometre area. Serinus is the operator of the Sabria concession while Entreprise Tunisienne d'Activités Pétrolières ("ETAP"), the Tunisian National Oil Company, holds the remaining 55% working interest.
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 is party to a joint venture agreement whereby the Company is on track to earn 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 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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