CALGARY, Alberta, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN) (WARSAW:SEN), is pleased to report its financial and operating results for the three months ended September 30, 2017.
Q3 2017 Highlights
Notes: Serinus prepares its financial results on a consolidated basis. Unless otherwise noted by the phrases “allocable to Serinus”, “net to Serinus”, “attributable to SEN shareholders” or “SEN WI”, all values and volumes refer to the consolidated figures. Serinus reports in US dollars; all dollar values referred to herein, whether in dollars or per share values are in US dollars unless otherwise noted.
Summary Financial Results (US$ 000’s unless otherwise noted)
Three Months Ended September 30 | |||||||||||||
2017 | 2016 | Change | |||||||||||
Oil and Gas Revenue | 382 | 3,632 | (89 | %) | |||||||||
Net Income (Loss) from Continuing Operations | (7,043 | ) | (4,971 | ) | (42 | %) | |||||||
per share, basic and diluted | (0.05 | ) | (0.06 | ) | |||||||||
Funds from Continuing Operations | (585 | ) | (3,186 | ) | (82 | %) | |||||||
per share, basic and diluted | (0.00 | ) | (0.04 | ) | (90 | %) | |||||||
Capital Expenditures | 3,335 | 1,066 | 213 | % | |||||||||
Average Production (net to Serinus from continuing operations) | |||||||||||||
Oil | (bbl/d) | 65 | 787 | (92 | %) | ||||||||
Gas | (Mcf/d) | 136 | 1,324 | (90 | %) | ||||||||
BOE | (boe/d) | 88 | 1,008 | (91 | %) | ||||||||
Average Sales Price (from continuing operations) | |||||||||||||
Oil | ($/bbl) | $ | 50.00 | $ | 43.01 | 16 | % | ||||||
Gas | ($/Mcf) | $ | 6.71 | $ | 4.26 | 58 | % | ||||||
BOE | ($/boe) | $ | 47.48 | $ | 39.19 | 21 | % | ||||||
September 30 | December 31 | ||||||||||||
2017 | 2016 | ||||||||||||
Cash & Cash Equivalents | 13,451 | 4,297 | |||||||||||
Working Capital (deficit) | (2,119 | ) | (38,475 | ) | |||||||||
Long Term Debt | 25,750 | - | |||||||||||
Shares Outstanding | 150,652,138 | 78,629,941 | |||||||||||
Average for Period | 150,652,138 | 78,629,941 | |||||||||||
General & Financial Highlights
Operational Highlights
Outlook
The Company is focusing on Romania as the impetus for growth over the next several years. The Moftinu Gas Project is a near-term project that is expected to begin producing from the gas discovery wells Moftinu-1001 and Moftinu-1000 in early 2018. Construction of the project commenced in Q2 2017 and continued in Q3 2017. The project consists of a gas plant with 15 MMcf/d of operational capacity with well tie-in and a sales gas line tie-in to the Transgaz system (national natural gas transmission pipeline system of Romania), with expected first gas production in the first quarter of 2018.
The Company is also developing the drilling program to meet work commitments for the extension and plans to drill two additional development wells (Moftinu-1003 and 1004) with a potential third well in 2018. The Corporation sees potential production from these wells being able to bring the gas plant to full capacity in late 2018.
In Tunisia, the Company is currently focusing on improving production from Sabria following the shut-in and plans to focus on carrying out low cost incremental work programs to increase production from existing wells, including the Sabria N-2 re-entry and installing artificial lift on another Sabria well, having determined that production at its oil field can be restarted in a safe and secure environment with sufficient comfort that there will be no further production disruptions for the foreseeable future. The Corporation views Sabria as a large development opportunity longer term.
For the Chouech Es Saida field, the Company is evaluating the restart of the field including timing and costs to replace the electric submersible pump for the CS-3 well. The Company views the level of activity pursued in Tunisia as dependent on the following thresholds being achieved and maintained. In terms of oil prices, incremental vertical wells become economic at Brent oil prices of ~$45/bbl, with potential multi-leg horizontal wells lowering the threshold to below $30/bbl in Sabria. The current capacity of surface facilities would only allow for 1-3 incremental wells for each of Sabria and Chouech Es Saida/Ech Chouech. As well for Chouech Es Saida/Ech Chouech, the STEG El Borma gas plant is nearly at its effective capacity. Further gas developments from this concession may have to be delayed until the completion of the Nawara Pipeline for material gas pipeline capacity to come online.
Supporting Documents
The full Management Discussion and Analysis (“MD&A”) and Financial Statements have been filed in English on www.sedar.com and in Polish and English via the ESPI system, and will also be available on www.serinusenergy.com.
Contemplating AIM Listing
The Company is investigating the listing of its shares on the Alternative Investment Market (“AIM”) of the London Stock Exchange. Significant progress has been made towards this end and the Company is currently considering the relevant regulatory requirements of its existing listings.
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 | ||||
CAD | Canadian Dollar | USD | U.S. 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 that owns and operates projects in Tunisia and Romania.
For further information, please refer to the Serinus website (www.serinusenergy.com) or contact the following:
Serinus Energy Inc. Calvin Brackman Vice President, External Relations & Strategy Tel.: +1-403-264-8877 cbrackman@serinusenergy.com | Serinus Energy Inc. Jeffrey Auld Chief Executive Officer Tel.: +1-403-264-8877 jauld@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.