Operations and Corporate Update
January 30 2018 - 5:00PM
Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN)
(WARSAW:SEN) is pleased to provide an update on its operations in
Romania and Tunisia.
Romania
On 06 January 2018 the Company announced that
the Moftinu-1001 well had been safely brought back under
control. Immediately following the capping operation, the
Company performed a flow-kill operation using weighted mud in order
to conduct a post-incident detailed evaluation of the well,
particularly with regard to the integrity of the surface well head
assembly and casing after the exposure to intense heat.
Following a period of evaluation, the Company has determined that
the casing bowl assembly had been exposed to sufficient heat that
its integrity was questionable. As such the Company has
decided to plug and abandon the Moftinu-1001 well. The Company has
initiated well cementing operations to permanently kill the well
flow and has initiated procedures to formally abandon the well
according to the norms and procedures of the National Agency of
Mineral Resources (“NAMR”). The Company is in the process of
completing its coverage claim with its insurance broker.
Following the decision to permanently plug and
abandon the Moftinu-1001 well the Company has initiated planning
and tendering for the immediate drilling of a replacement
well. The Company’s insurance policy includes coverage for
the costs of a replacement well. The Company has identified a new
well location approximately 300 metres from the Moftinu-1001 well
site. The re-drill will form part of the Company’s insurance claim,
which would be submitted post-drilling of the Moftinu-1007
well.
The Company has applied for emergency approval,
as allowed under Romanian petroleum legislation governing approvals
and operations, in order to expedite the drilling and completion of
the Moftinu-1007 well. It is currently anticipated by the Company
that after receiving emergency approval authorization, that it will
be able to commence drilling in March, with drilling, completion
and testing taking up to one month.
The Company has engaged a Romanian consultancy
firm that is recognised by the Romanian authorities to conduct a
root cause analysis of the Moftinu-1001 incident. In
addition, the Company is in the process of engaging an
international company to also conduct a root cause investigation on
behalf of the Board and shareholders. The results of these
investigations will be communicated to the relevant authorities in
Romania as well as to the shareholders of the Company. It is
anticipated that these investigations will be available to the
Company prior to the drilling of Moftinu-1007.
In regards the Moftinu Gas Development Project
(the “Project”) following the recent incident with the Moftinu-1001
well, the Company is continuing with remediation operations at the
site. Once the site remediation is complete, the Company
anticipates resuming construction on the project in early
February.
As previously announced, it was the Company’s
expectation that the Project would be onstream with first gas in Q1
2018. The Project is now expected to be onstream in late Q2 2018
due to the following reasons:
- the required ongoing remediation of the Project site; and
- the requirement to drill, complete and test the replacement
Moftinu-1007 to replace the expected gas production the
Moftinu-1001 well was expected to have contributed to the initial
Project capacity.
The Company also re-entered, worked-over and
tested the Moftinu-1000 well in operations preceding the
Moftinu-1001 incident. The workover consisted of a cement squeeze
and re-perforation of the producing zones. The Moftinu-1000 well
flow test in 2013 was 1.24 million cubic feet per day (“mmcf/d’)
and the Company had reason to believe that the existing
perforations were of poor quality and restricted the wells
production capability. The workover resulted in a new test flow
rate of 1.96 mmcf/d, a 57% increase over the 2013 test
flowrate.
The Project is now slated to bring on gas
production from the Moftinu-1000 and, once drilled, completed and
tested, the Moftinu-1007 well. None of the Project specifications
have changed as a result of the incident other than timing of first
gas, as the Company is still constructing the gas plant at a
capacity of 15 mmcf/d, with connecting well flowlines, and a sales
gas pipeline connecting to the nearby Transgaz national gas
transmission system. As mentioned above, the Project is now
expected to achieve first gas in the late second quarter of 2018.
The Company will keep the markets apprised of any change to this
expected timeline that may occur as the Project construction
progresses.
Beyond the work on the Project, the Company is
also progressing with the planning and approvals for the future
commitment wells. The Company has received approvals from NAMR to
drill two exploration commitment wells into the Moftinu Structure:
Moftinu-1003 and Moftinu-1004. As well, the Moftinu-1007 well is
expected to qualify as a commitment well. The land permitting stage
for the Moftinu-1003 and Moftinu-1004 wells have also been
completed and it is anticipated that these will be drilled
following the drilling of Moftinu-1007. It is planned that all
these wells will be drilled by Q3 2018, thereby fulfilling the work
commitments for the Addendum. With commercial success, production
from Moftinu-1003 and Moftinu-1004 will be added to the
experimental production phase of the Moftinu Gas Development
Project. The Company is also considering conducting a 3D seismic
program in the near future to further identify potential
exploration targets within the Satu Mare concession area in order
to accelerate production growth in Romania.
Tunisia
Since restarting production at the Sabria field
on 06 September 2017 after being shut-in due to social protests,
the production at Sabria has been slowly ramping up. Currently
three of the four Sabria producing wells have returned to normal
production levels, with only the Win12bis well having not yet
achieved prior production levels.
The Company is still looking at the timing of
bringing the Chouech Es Saida field back on production. However,
the recent well incident in Romania and the Company’s need to focus
its financial resources on the completion of the Moftinu Gas
Development Project, it is expected that the Chouech Es Saida field
will not be brought onto production until the latter half of
2018.
Given the recent recovery in oil prices, the
Company and its partner, ETAP, are considering the timing and
execution of additional capital projects that may boost the
Company’s Tunisian production.
Corporate
The Company is progressing its plan for the
continuance of the Company from Alberta to Jersey, Channel Islands,
and to also list its shares for trading on the AIM market of the
London Stock Exchange (“AIM”). The Company will be holding a
special meeting of shareholders for 07 March 2018 to approve the
continuation to Jersey as well as other matters requiring
shareholder approval.
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.Calvin BrackmanVice President, External
Relations & StrategyTel.:
+1-403-264-8877cbrackman@serinusenergy.com |
Serinus Energy Inc.
Jeffrey AuldChief Executive OfficerTel.:
+1-403-264-8877jauld@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.
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