|By Marketwired .||
|March 19, 2014 07:50 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 03/19/14 -- Serinus Energy Inc. (TSX: SEN)(WARSAW: SEN) ("Serinus Energy", "SEN" or the "Company") is pleased to announce that the Makeevskoye-17 ("M-17") exploration well has been cased to total depth ("TD") of 3,445 meters. The Olgovskoye-24 ("O-24") well has also produced gas during a test, and will be added to the inventory of wells to be stimulated in 2014. The operator, KUB-Gas LLC ("KUB-Gas") is preparing now to complete, test and tie in M-17. KUB-Gas is a partially-owned subsidiary in which SEN has a 70% effective ownership interest through its 70% shareholding of KUBGas Holdings Limited.
Makeevskoye-17 Finds Multiple Gas Zones
The M-17 well was drilled to appraise the gas discovery made in the S6 sandstone in Makeevskoye-16 ("M-16"). It is located about 1 kilometre to the northwest of M-16 within the same structural closure. Drilling commenced at the end of November 2013 and reached a total depth ("TD") of 3,445 metres in early March.
Wireline logs indicate 9 metres of net gas pay in the S6 sandstone, with average porosity of 15%, with sections as high as 22%, with no gas-water contact encountered. The logs also indicated 2.5 metres of net pay in the S5 carbonates.
There also appears to be resource potential in the R30c and S7 sands. The R30c showed 22 metres of gas charged sand over a water leg. The S7 showed several porosity stringers that may contain gas. Both zones will require additional analysis and study to verify this potential.
M-17 is the third well within Company licences to find gas in the S6, after M-16 and the O-15 well in the Olgovskoye field to the northwest. Serinus' 2014 drilling program includes two more wells in Makeevskoye to develop the new S6 pool established by the M-16 and M-17 wells.
The Makeevskoye Field comprises approximately 48% of total Ukrainian production and is the most productive licence in Serinus' portfolio in Ukraine. Currently gross production is 14.9 MMcf/d (10.4 MMcf/d net to SEN WI) from 6 producing wells. In April 2013, the Company announced a new pool gas discovery on the Makeevskoye Licence in Ukraine when the M-16 well tested gas from the S6 zone. M-16 is the deepest well drilled on the Makeevskoye Licence to date and the first well drilled by the Company through the entire Serpukhovian aged section. With the success in the M-17 well, the start-up of the new Makeevskoye gas processing facility plus the previously mentioned development drilling, Serinus anticipates further production growth in 2014.
In the Company's press release of October 29, 2013, Serinus announced that the O-24 well had been drilled to a depth of 3,300 meters and cased, and that logs indicated three potential hydrocarbon bearing zones. The first two tests (B6 and B4b zones) were not successful, but the third test of the R-30c did flow gas at low rates. The well has been suspended, and will be included in the Company's upcoming stimulation program. The R30c zone has been successfully stimulated in the O-4, O-5, O-6 and O-8 wells.
Olgovskoye is Serinus' second largest producing field at 13.5 MMcf/d (9.5 MMcf/d net to SEN WI) from 10 wells. Most of the production comes from Bashkirian aged sandstones, but with the success in the Serpukhovian in O-15, the Company's new exploration and development efforts have been expanded to include that deeper section as well. The 2014 drilling program includes one development well, O-11, targeting both the R30c and S6 sands.
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 has a 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.
Suite 1170, 700-4th Avenue SW, Calgary, Alberta, Canada Telephone: +1-403-264-8877 Al Shafar Investment Building, Suite 123, Shaikh Zayed Road, Dubai, UAE Telephone: +971-4-339-5212 Nowogrodzka 18/29, 00-511 Warsaw, Poland Telephone: +48 (22) 414 21 00
Serinus Energy Inc. - Canada
Norman W. Holton
Serinus Energy Inc. - Canada
Gregory M. Chornoboy
Director - Capital Markets & Corporate Development
Serinus Energy Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
Tel.: +48 22 414 21 00