Serinus Q3 2015 Financial and Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/12/15 -- 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 September 30, 2015.
Third Quarter Highlights
Summary Financial Results (US$ 000's unless otherwise noted)
(i) Funds from Operations is not a recognized measure under IFRS. See Management's Discussion and Analysis for further information on non-IFRS measures.
Due to sustained low oil prices during 2015 to date, Serinus took an impairment charge of $44.3 million against its Tunisian assets. This does not affect the present value of the reserves, and the Company looks forward to continued investment and growth in Tunisia.
At September 30, 2015, the Company was not in compliance with the annual debt service coverage ratio covenant on its debt held with the European Bank for Reconstruction and Development ("EBRD"). The EBRD subsequently waived compliance with this ratio for Q3, conditional upon Serinus maintaining a reduced debt coverage ratio of 0.25 times from October 1, 2015 to December 31, 2015. Repayments will follow their original schedule and the bank will not be acting on its security. However, given that the covenant was breached as at September 30, 2015, the debt is reclassified to current in the financial statements as required under accounting standards.
Operational Highlights & Update
Third 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
On September 3, 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 December 4, 2015.
A new bill governing the natural gas market became effective on October 1, 2015. The administrative procedures associated with this bill have not yet been made available, so the full effects are not yet fully understood, but the two provisions that appear to have material impacts on KUB-Gas' business and operations include:
On October 5, 2015, the Rada (the Ukrainian parliament) passed the first reading of a bill to reduce the nominal royalty rates on natural gas from 55% (28% on wells deeper than 5,000 metres) to 29% and 14% respectively. The two year relief period on new wells during which the nominal rate was reduced by 55% (to 30.25%) is no longer in effect. As mentioned above, it is unclear as to what price the royalties will applied. Royalties on oil and liquids would remain unchanged at 43%. The bill must still pass a second reading and receive presidential signature before coming into effect.
Outlook
Average daily production (SEN WI) for the fourth quarter to date is approximately 3,870 boe/d (959 bbl/d of oil, 17.1 MMcf/d of gas, 53 bbl/d of liquids). Since the re-start of the WIN-12bis well in late October, production has averaged 4,115 boe/d (1,082 bbl/d of oil, 17.9 MMcf/d of gas, 55 bbl/d of liquids).
Ukraine
KUB-Gas has an inventory of 7 development and 4 exploration locations, and a minimum of 15 additional contingent locations depending on success on the Olgovskoye, Makeevskoye and North Makeevskoye licences. Work to develop a drilling inventory on West Olgovskoye is underway using the data from a recently acquired 2D seismic line, and 3D seismic is also being contemplated. Pursuit of these prospects should increase pending enactment of the bill to reduce natural gas royalties discussed previously.
Tunisia
The Sabria Field could be capable of a multi-well development program, but due to current low commodity prices, no additional drilling is expected for 2015.
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 gazetting of the Phase 3 extension of the Satu Mare Licence and 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. The exploration program will include shooting 3D seismic. Pending those results, further technical analysis and availability of financing, Serinus anticipates testing these prospects over the next several years.
Updated Corporate Presentation
An updated corporate presentation is now available on the Company's website at in the Investor Centre.
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 .
Abbreviations
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.
For further information, please refer to the Serinus website ().
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
Tel.: +1-403-264-8877
Serinus Energy Inc. - Canada
Gregory M. Chornoboy
Director - Capital Markets & Corporate Development
Tel: +1-403-264-8877
Serinus Energy Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
Tel.: +48 22 414 21 00
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Unternehmensinformation / Kurzprofil:
Datum: 13.11.2015 - 00:30 Uhr
Sprache: Deutsch
News-ID 434338
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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