Serinus Q2 2015 Financial and Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/13/15 -- Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX: SEN) (WARSAW: SEN), is pleased to report its financial and operating results for the quarter ended June 30, 2015.
Second Quarter Highlights
Notes: Serinus prepares its financial results on a consolidated basis, which includes 100% of its indirectly 70% owned subsidiary, KUB-Gas LLC ("KUB-Gas"). Unless otherwise noted by the phrases "allocable to Serinus", "net to Serinus", "attributable to SEN shareholders" or "net to 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.
Operational Highlights & Update
Second quarter production and prices are broken down as follows:
Note on nomenclature: Wells in the Company's Ukraine properties are named by the initial of the field followed by a well number. Wells in Olgovskoye, Makeevskoye, Vergunskoye, Krutogorovskoye, North Makeevskoye and West Olgovskoye fields use the prefixes "O", "M", "V", "K", "NM" and "WO" respectively. For example, the Makeevskoye-17 well is referred to herein as M-17.
Ukraine Legislative Developments
Although subsequently overturned by the Ukrainian courts, three bills passed in November 2014, which cumulatively required 170 of the largest gas consumers in Ukraine to purchase their gas solely from Naftogaz, continue to affect the market. With a large portion of the natural gas market unavailable, competition intensified between private producers for the few remaining creditworthy customers, inhibiting both prices and volumes. Management estimates that KUB-Gas' total sales volumes were approximately 2 MMcf/d below its productive capacity for the second quarter. The Limit Price (the maximum price set by regulators each month that can be charged to industrial customers) averaged 6,870 UAH/Mcm (approximately $8.92/Mcf) during the second quarter, but the increased competition resulted in a realized price of $7.14/Mcf. As royalties are calculated on the Limit Price rather than the actual received, effective royalty rates were higher than the nominal published rates.
On January 1, 2015, the government made permanent the royalty rates of 55% and 45% for gas and oil respectively, and eliminated the provision for the "lowering coefficient" for wells commencing production after August 1, 2014, under which the royalty rate for gas from new wells was reduced to 30.25% for the first two years of production. On March 3, 2015, a bill was enacted reinstating that relief period effective April 1, 2015, making KUB-Gas' M-17 well eligible for the lower rate. With the requalification of M-17 plus given the disparity between the Limit Price and realized prices as mentioned above, the effective aggregate royalty rate in Q2 was 57.4%, down from 63.9% in Q1.
On June 4, 2015, the National Bank of Ukraine announced that the restrictions on foreign currency transactions first imposed in September 2014. (and later expanded) have been extended until September 3, 2015.
Outlook
Average daily production (SEN WI) for the third quarter to date was approximately 3,970 boe/d (966 bbl/d of oil, 17.7 MMcf/d of gas, 55 bbl/d of liquids). Since the re-start of the Sabria Field in late July, production has averaged 4,392 boe/d (1,240 bbl/d of oil, 18.6 MMcf/d of gas, 57 bbl/d of liquids).
Ukraine
The Limit Price for August at which gas can be sold to industrial customers in Ukraine is 6,600 UAH per Mcm. At the current exchange rate of 21.45 UAH/USD, that is equivalent to $8.67/Mcf. The price that KUB-Gas receives has been 15% - 20% lower, reflecting the margins of the traders through whom the gas is sold, and lingering effects of the erstwhile gas market restrictions.
The Company is considering hydraulic stimulations for the O-11, O-15 and M-22 wells. If approved, the campaign will take place during the fall of 2015.
A compression unit has been installed at the Olgovskoye Field facilities to address sales gas dew point issues, and is now in operation. Production rates remain limited by market conditions, but as and when demand recovers, management estimates that the compressor will add approximately 2 MMcf/d (gross) of capacity.
Tunisia
All wells in Sabria have been returned to production after the shut-in.
Romania
The Company is currently refining the development drilling program and has commenced preliminary design of the required surface facilities for the Moftinu-1001 gas discovery. Pending the various permits and approvals required and obtaining financing for the project, drilling and construction could commence in mid-2016, with commercial production in early 2017. Development of this discovery will include up to three additional wells plus surface facilities, costing approximately $16 million.
Given the success in Moftinu, the Company is also proceeding to refine and expand the exploration inventory within the concession. Based on older vintage 2D seismic data and existing wells, management has identified over 25 leads and prospects with risked, Pmean prospective resources of 59.7 MMboe (Company estimate). These prospective resources are in addition to the above mentioned discoveries at Moftinu. The exploration program will include shooting 3D seismic over the Berveni and Madaras areas, both of which are identified in Serinus' latest corporate presentation, available at . Pending those seismic results, further technical analysis and availability of financing, Serinus anticipates testing these prospects over the next several years.
Supporting Documents
The full Management Discussion and Analysis ("MD&A") and Financial Statements have been filed in English on and in Polish and English via the ESPI system, and will also be available on .
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.
Test results are not necessarily indicative of long-term performance or of ultimate recovery. Test data contained herein is considered preliminary until full pressure transient analysis is complete.
About Serinus
Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Ukraine, Tunisia, and Romania.
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.
Contacts:
Serinus Energy Inc. - Canada
Norman W. Holton
Vice Chairman
+1-403-264-8877
Serinus Energy Inc. - Canada
Gregory M. Chornoboy
Director - Capital Markets & Corporate Development
+1-403-264-8877
Serinus Energy Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00
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Datum: 13.08.2015 - 22:15 Uhr
Sprache: Deutsch
News-ID 413672
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Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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