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Serinus Energy Inc.-Ukraine: Operations Update

CALGARY, ALBERTA -- (Marketwired) -- 06/27/14 -- Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN), announces an update on its operations in Ukraine.

Due to a deteriorating security situation, the Company has decided to put developmental field operations on hold. Production will continue, but current drilling, workover and development activities will be wound down as they are either completed, or reach thresholds at which operations can be suspended safely with no risk to the assets and people involved, including:


1.  M-17 has been tied in to the new Makeevskoye Gas Plant, and is currently
    producing at a rate of 4.27 MMcf/d. That rate is expected to stabilize
    during the course of the next week. Production in Ukraine is currently
    approximately 34.2 MMcf/d. All further tie-ins' will be deferred until
    such time as it is deemed safe to resume active field operations. 
2.  The S6 zone in the O-11 well has been perforated and testing commenced.
    Upon perforation the well had a strong air blow then flowed gas to
    surface. The well was shut in for a pressure build up and the pressure
    had not stabilized at the time of this release. No additional tests will
    be undertaken at this time; 
3.  Surface casing has been set in the NM-4 well at a depth of 100.2 meters,
    and the rig has moved off. 

While the Company continues to produce, sell and be paid for the gas sold, it is no longer prudent to continue these active operations in a situation where the security changes daily. In particular, the area immediately in and around Lugansk where the Vergunskoye and Krutogorovskoye fields (producing 0.4 MMcf/d and 0.6 MMcf/d respectively) are located is no longer controlled by the government and as a result production at the Vergunskoye field has been shut in.

Tim Elliott said: "The situation in Ukraine changes daily. Notwithstanding the ceasefire declarations, the security situation on the ground remains uncertain. Consequently, a decision has been made to stop active field operations. We have been operating in the field up until this point with the support and at the behest of the KUB-Gas employees who have shown tremendous bravery and determination to continue working in the face such difficult conditions. However, the Company has decided that it is prudent to be cautious and elected to cease operations until such time as conditions in the immediate area stabilize."

Abbreviations


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bbl       Barrel(s)                   bbl/d     Barrels per day             
----------------------------------------------------------------------------
Mbbl      Thousand barrels            MMbbl     Million barrels             
----------------------------------------------------------------------------
boe       Barrels of Oil Equivalent   boe/d     Barrels of Oil Equivalent   
                                                per day                     
----------------------------------------------------------------------------
Mboe      Thousand boe                MMboe     Million boe                 
----------------------------------------------------------------------------
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         Mcfe/d    Thousand Cubic Feet         
          Equivalent                            Equivalent per day          
----------------------------------------------------------------------------
MMcfe     Million Cubic Feet          MMcfe/d   Million Cubic Feet          
          Equivalent                            Equivalent per day          
----------------------------------------------------------------------------
Mcm       Thousand Cubic Metres       Bcf       Billion Cubic Feet          
----------------------------------------------------------------------------

About Serinus

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 1500, 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                                               

Contacts:
Serinus Energy Inc. - Canada
Norman W. Holton
Vice Chairman
+1-403-264-8877
[email protected]

Serinus Energy Inc. - Canada
Gregory M. Chornoboy
Director - Capital Markets & Corporate Development
+1-403-264-8877
[email protected]

Serinus Energy Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
+48 22 414 21 00
[email protected]
www.serinusenergy.com

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