Serinus Announces Q2 2017 Financial and Operating Results
(Thomson Reuters ONE) -
CALGARY, Alberta, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Serinus Energy Inc.
(TSX:SEN) (WARSAW:SEN) ("Serinus", "SEN" or the "Company"), is pleased to report
its financial and operating results for the three months ended June 30, 2017.
Q2 2017 Highlights
* During Q2 2017, production from Tunisia averaged 329 boe/d, a decrease from
1,206 boe/d in Q2 2016. Lower production during 2017 was due to the shut-in
of fields in Tunisia. Chouech Es Saida field has been shut-in since February
28, 2017, due to labour issues. In addition, from May 22, 2017 the Sabria
field was also shut-in due to continued social unrest in the southern part
of the country. Both fields currently remain shut-in.
* The netback for Tunisia in Q2 2017 was $2.00 per boe, compared to $11.71 per
boe in 2016. The lower netback was driven by lower production driving up
costs on a boe basis.
* Funds from operations was an outflow of $1.5 million for Q2 2017 (2016: $0.7
million) comprised of a loss from operations in Tunisia of $1.0 million and
a corporate loss from operations of $0.6 million, partially offset by funds
from operations in Romania of $0.1 million, resulting in total negative
funds from operations for the quarter. On a year to date basis, funds from
operations was an outflow of $1.3 million, as compared to an inflow of $2.0
million in the comparative period of 2016. Funds from operations from
Tunisia was $0.0 million and Romania $0.1 million, which when offset by the
corporate loss of $1.4 million, resulted in negative funds from operations
year to date. The sale of Ukraine in 2016 and lower production in Tunisia
in 2017 contributed to the decrease in funds from operations.
* The net loss for the six month period ended June 30, 2017 was $2.1 million,
compared to a net loss from continuing operations of $8.1 million in Q2
2016.
* On May 9, 2017, the Company signed an Engineering, Procurement, Construction
and Commissioning Contract ("EPCC") with Confind S.R.L., a Romanian company,
for the construction of a gas facility and associated flowlines and
pipelines for Moftinu development in Romania. Construction commenced in Q2
2017 with anticipated first gas in Q1 2018.
* At June 30, 2017, the Company was not in compliance with the consolidated
financial debt to EBITDA ratio, the consolidated debt service coverage ratio
and the Tunisian debt service coverage ratio on its debt held with EBRD.
Subsequent to June 30, 2017, EBRD formally waived compliance with these
ratios for the period ended June 30, 2017. The implication of this waiver
is that the debt repayments will follow their original scheduled repayment
terms and the bank will not be acting on its security as a result of the
breach.
Summary Financial Results (US$ 000's unless otherwise noted)
Three Months Ended June 30
-------------------------------------------
2017 2016 Change
----------------- ---------------- --------
Oil and Gas
Revenue 1,342 4,080 (67 %)
Net Income from Continuing
Operations 31 (3,994 ) 101 %
per share, basic and
diluted 0.00 (0.05 )
Funds from Continuing
Operations (1,463 ) (714 ) 105 %
per share, basic and
diluted (0.01 ) (0.01 ) 7 %
Capital
Expenditures 1,453 611 138 %
Average Production (net to
Serinus from continuing
operations)
Oil (Bbl/d) 244 882 (72 %)
Gas (Mcf/d) 509 1,942 (74 %)
----------------- ----------------
BOE (boe/d) 329 1,206 (73 %)
Average Sales Price (from
continuing operations)
Oil ($/Bbl) $ 47.25 $ 41.25 15 %
Gas ($Mcf) $ 6.32 $ 4.35 45 %
----------------- ----------------
BOE ($/boe) $ 44.85 $ 37.18 21 %
June 30 December 31
----------------- ----------------
2017 2016
----------------- ----------------
Cash & Cash
Equivalents 16,019 4,297
Working Capital
(deficit) (23,319 ) (38,475 )
Long Term Debt - -
Shares
Outstanding 150,652,138 78,629,941
Average for
Period 150,650,674 78,629,941
General & Financial Highlights
* Revenue, net of royalties, from Tunisia for the three and six months ended
June 30, 2017 decreased to $1.2 million and $3.6 million, compared to $3.8
million and $7.0 million in the comparative periods of 2016. The decrease
in 2017 was attributable to lower production, partially offset by higher
commodity prices and lower royalty rates.
* Total royalties paid decreased from $0.5 million in Q2 2016 to $0.1 million
in Q2 2017. Much of this decrease was due to lower production offset by
higher average commodity prices.
* Serinus made capital expenditures of $1.5 million in Q2 2017, of which
$1.4 million was expended in Romania and $0.1 million was expended in
Tunisia.
* At June 30, 2017, the Company was not in compliance with the consolidated
financial debt to EBITDA ratio, the consolidated debt service coverage ratio
and the Tunisian debt service coverage ratio on its debt held with EBRD.
Subsequent to June 30, 2017, EBRD formally waived compliance with these
ratios for the period ended June 30, 2017. The implication of this waiver
is that the debt repayments will follow their original scheduled repayment
terms and the bank will not be acting on its security as a result of the
breach. However, given the covenant was breached as at June 30, 2017,
Serinus has reclassified its long-term debt to current in the financial
statements, as required under accounting standards. There is a risk that
the Company will continue to violate certain financial covenants relating to
its debt held with EBRD, particularly given the current commodity prices and
the shut-in of production in Tunisia. Although the EBRD has previously
provided waivers for covenant breaches there is no certainty this will occur
in the future. If these covenants are not met, the debt may therefore
become payable on demand.
* In June 2017, the Company closed the sale of its indirect wholly owned
subsidiary that held an interest in Syria Block 9, for which Force Majeure
had been declared on July 16, 2012 due to conditions arising from the
instability in the country. The impact of this sale was that payables in
the amount of $2.2 million relating to this asset have been reversed through
the income statement and presented as a gain on sale. This represents
management's ongoing initiative to strengthen the Company's balance sheet
through the divesture of non-core assets.
Operational Highlights
* During Q2 2017, production from Tunisia averaged 329 boe/d, a decrease from
1,206 boe/d in Q2 2016. Lower production during 2017 was due to the shut-in
of fields in Tunisia. Chouech Es Saida field has been shut-in in since
February 28, 2017, due to labour issues. In addition, from May 22, 2017 the
Sabria field was also shut-in due to continued social unrest in the southern
part of the country. Both fields currently remain shut-in.
* In Tunisia, the Company incurred $0.1 million of capital expenditures for
the three month period ended June 30, 2017. In Romania, the Company incurred
$1.4 million of capital expenditures for the three month period ended June
30, 2017. In Q2 2017 construction commenced on the Moftinu gas plant.
Incurred costs included permitting and licencing, land rentals and ongoing
engineering study costs as well as costs associated with the Bucharest
office.
Outlook
The Company is focusing on Romania as the impetus for growth over the next
several years. The Moftinu gas development 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. The Company signed an EPCC contract on May 9, 2017
and has commenced construction in Q2 2017 of a gas plant with 15 MMcf/d of
operational capacity, 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's 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, are
dependent on resolution of the social issues in Tunisia and the Company being
able to restart production in a safe and sustainable environment. The
Corporation views Sabria as a large development opportunity longer term.
Production volumes decreased in the second quarter to 329 boe/d, as compared to
1,206 boe/d in the comparable period of 2016. In Q2 2017, the decrease in
production is attributable to the shut-in of the Chouech Es Saida field since
February 28, 2017 and the Sabria field since May 22, 2017. The shut-in of these
fields was due to social unrest in southern Tunisia that has stopped all oil &
gas production in the region.
Full production in Tunisia for 2017 is dependent on the successful resolution of
the social unrest in southern Tunisia and the associated security and safety
issues this unrest has created.
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.
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 |
+-----+------------------------------+-------+---------------------------------+
| | | |Thousand Cubic Feet Equivalent|
|Mcfe |Thousand Cubic Feet Equivalent|Mcfe/d |per day |
+-----+------------------------------+-------+---------------------------------+
| | | |Million Cubic Feet Equivalent per|
|MMcfe|Million Cubic Feet Equivalent |MMcfe/d|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. Serinus Energy Inc.
Calvin Brackman Jeffrey Auld
Vice President, External Relations & Strategy Chief Executive Officer
Tel.: +1-403-264-8877 Tel.: +1-403-264-8877
cbrackman(at)serinusenergy.com jauld(at)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.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Serinus Energy Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2017 - 00:10 Uhr
Sprache: Deutsch
News-ID 556194
Anzahl Zeichen: 17415
contact information:
Town:
Calgary
Kategorie:
Business News
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