Serinus Energy Inc.: Ukraine-Krutogorovskoye Converted to 20-Year Production Licence
September 05, 2013 (Source: Marketwire) — Serinus Energy Inc. (TSX:SEN) (“Serinus“, “SEN” or the “Company“), an international upstream oil and gas exploration and production company reports, that KUB-Gas LLC (“KUB-Gas“), a partially-owned subsidiary in which Serinus has a 70% effective ownership interest through its 70% shareholding in KUBGas Holdings Limited, has received Special Permit No. 5835 from the State Geological Service of Ukraine authorising full industrial production from the Krutogorovskoye Licence for a 20-year term. The new production licence replaces the previously issued 5-year Special Permit for exploration under which production was limited to no more than 10% of the in-place hydrocarbon volumes. With the conversion to a production licence, production from Krutogorovskoye is no longer limited. The Krutogorovskoye licence is operated by KUB-Gas.
The target reservoirs underlying the Krutogorovskoye Licence, are of Musocvian and Bashkirian age with Bashkirian sandstones producing gas in both the K-1 and K-3 wells. The K-7 well reached total depth (“TD“) of 3,206 metres in Q4 2012 and tested natural gas at a rate 5.9 million cubic feet per day (“MMcf/d“). The Company is currently in process of acquiring permits to lay approximately seven kilometres of pipeline to tie-in the K-7 well for commercial production.
About Serinus Energy
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 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.
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In Tunisia, Serinus owns a 100% working interest in the ChouechEssaida, EchChouech, 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, a 1,123 square kilometre area covering onshore and offshore areas in northern Brunei.
In Romania, Serinus owns an undivided 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.
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 of KUB-Gas and related to its five licence areas in Ukraine and to certain wells drilled or seismic activities undertaken within those licence areas 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 thatthe 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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