Serinus Energy Inc.: Ukraine-NM-3 Well Tests Oil and Gas-Potentially Opening Up a New Play in the North Makeevskoye Exploration Licence
July 31, 2013 (Source: Marketwired) — Serinus Energy Inc. (TSX:SEN)(WARSAW:SEN) (formerly Kulczyk Oil Ventures Inc. – “Serinus” or the “Company“), an international upstream oil and gas exploration and production company, is pleased to announce that an open hole test of the North Makeevskoye-3 (“NM-3“) exploration well recovered oil and gas from Visean aged rock formations underlying the North Makeevskoye Exploration Licence.
The NM-3 well, the third well drilled on the North Makeevskoye Exploration Licence, is located 3 kilometres southeast of the North Makeevskoye-1 well. It is a deviated well which reached a total depth (“TD“) of 2,426 metres (measured depth) after penetrating the metamorphic basement. The well took 54 days to reach TD after spudding on May 30, 2013. Petrophysical analysis of the logs identified a 30 metre thick Visean aged sandstone as being potentially oil saturated. An open hole drill stem test was conducted over the interval 2,344 metres to 2,426 metres measured depth. The test recovered 0.5 m3 of 37° API oil and minor amounts of produced gas were flared. Fluid samples have been collected for laboratory analysis. The well has been cased to TD to allow for further testing.
The Company believes that the well may be capable of producing at commercial rates after stimulation. Further analysis of the full diameter core recovered over the zone of interest, petrophysical analysis and fluid analysis will be required to fully assess the prospectivity of this formation. A positive oil test is a first for the Company in Ukraine and is of particular importance as it is the first indication that the Visean formations are hydrocarbon bearing within the Company’s licences. Positive results from this deeper Visean reservoir has the potential to develop into a new play and increase the resource potential of the Company’s Ukrainian assets.
Jock Graham, Executive Vice President & COO, commented that:
“While the log analysis indicated that the formation was potentially hydrocarbon bearing, the reservoir also looked very tight, and we weren’t really expecting much in the way of hydrocarbon recovery. Consequently we were pleasantly surprised that both oil and gas were recovered from the well. As a result, the well is being cased for future testing as the Company believes that the well may be capable of producing at a commercial rate after stimulation. Aside from the fact that oil was recovered on test, which is a first for us in Ukraine, of particular importance is that the oil was recovered from the Visean reservoir, a deeper reservoir that the company has never produced from, so it potentially opens up a new play for us.”
The NM-3 well is operated by KUB-Gas LLC, a majority-owned subsidiary in which the Company has a 70% effective ownership interest.
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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. 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, 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 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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