CALGARY, Alberta, 2017-12-04 23:00 CET (GLOBE NEWSWIRE) --
Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN),
announces the results of a competent person's report ("CPR") of its oil and gas
Reserves as at September 30, 2017. The report was prepared by RPS Energy
Canada Ltd. ("RPS") in accordance with the AIM Guidance Note for Mining, Oil
and Gas Companies dated June 2009, and includes the Reserves in Serinus'
properties in Tunisia and Romania. RPS also conducted a Contingent Resources
assessment of the Company's properties. The Company engaged RPS to conduct the
CPR as part of its continued investigation in listing on the Alternative
Investment Market ("AIM") of the London Stock Exchange. The table below
compares the CPR versus the Company's 2016 year-end Reserves report completed
by RPS in accordance with Canadian National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities.
Company Gross Reserves - Using Forecast Prices
September 30, 2017 (CPR) December 31, 2016 (NI
51-101)
Oil/Liquids Gas BOE Oil/Liquid Gas BOE Change
s
(Mbbl) (MMcf) (Mboe) (Mbbl) (MMcf) (Mboe) (%)
TUNISIA (Company Working Interest)
Proved
Producing 383 908 534 1,068 1,985 1,399 -62 %
Non-Producin 71 176 100 481 1,961 808 -88 %
g
Undeveloped 827 1,951 1,152 699 1,641 973 18 %
Total Proved 1,281 3,035 1,787 2,247 5,587 3,178 -44 %
(1P)
Probable 4,086 9,614 5,688 5,169 14,455 7,578 -25 %
Total Proved 5,367 12,649 7,475 7,416 20,042 10,756 -31 %
& Probable
(2P)
ROMANIA (Company Working Interest)
Proved
Producing - - - - - - N/A
Non-Producin - - - - - - N/A
g
Undeveloped 13 6,380 1,076 - - - N/A
Total Proved 13 6,380 1,076 - - - N/A
(1P)
Probable 27 8,636 1,466 - - - N/A
Total Proved 40 15,016 2,543 - - - N/A
& Probable
(2P)
TOTAL COMPANY
Proved
Producing 383 908 534 1,068 1,985 1,399 -62 %
Non-Producin 71 176 100 481 1,961 808 -88 %
g
Undeveloped 840 8,331 2,229 699 1,641 973 129 %
Total Proved 1,294 9,415 2,863 2,247 5,587 3,178 -10 %
(1P)
Probable 4,113 18,250 7,155 5,169 14,455 7,578 -6 %
Total Proved 5,407 27,665 10,018 7,416 20,042 10,756 -7 %
& Probable
(2P)
______________________________
Note: Serinus reports in US dollars. All dollar amounts referred to herein are
in USD, unless specifically noted otherwise.
The price of Brent Crude started at just under US$57/bbl in early January, and
stayed within a narrow price band of US$53-US$57 per barrel. In March, the
Brent oil price quickly dropped to just over US$50/bbl before recovering back
to above US$56/bbl in mid-April 2017. Oil prices then began to show higher
volatility from mid-April to the end of mid-June, fluctuating within a
$45/bbl-$55/bbl band before reaching $44.82 on June 21, 2017, this being the
yearly low to date. The prices then began to gradually strengthen the remainder
of the year to date to the end of November. The yearly high oil price was
reached on November 6, 2017, at $64.27/bbl. The oil price has sustained levels
above $50/bbl for most of 2017 to date, creating more price certainty for the
industry after two years of operating in a mostly sub-$50/bbl price
environment.
Total Company 1P and 2P Reserves decreased from 2016 year-end by 10% and 7%,
respectively. The shut-in of the Sabria and Chouech Es Saida fields due to
social unrest in Tunisia were the dominant factor in first nine months of 2017.
The reduced reserves volumes are due to the continued shut-in of the Chouech
Es Saida field awaiting the management decision to restart the field and delays
in some development plans. There were positive and negative revisions which
are discussed below. The negative reserve revisions in Tunisia were offset by
the reclassification of Romanian Contingent Resources to Reserves as the
Company has begun construction of the Moftinu Gas Development Project, with
first gas production anticipated for Q1 2018.
Tunisia
For Tunisia, 1P Reserves decreased by 44%, while 2P Reserves decreased by 31%
compared with the 2016 year-end Reserves report. The technical revisions to
Reserves are:
· Positive revisions included:
° Removing SAB N1 workover and replacing with SAB N2, adding more potential
recoverable volumes at lower cost;
° Improvement in SAB 11 production performance; and
° Positive revision for Win13, SAB NW1 and SAB N3H ultimate recoveries and
initial rates.
· Negative revisions included:
° Re-classification of Chouech Es Saida, Ech Chouech and Sanghar fields from
Reserves to Contingent Resources decreased 1P Reserves by 1,151 Mboe, 72 Mboe,
and 51 Mboe, respectively;
° Decreased performance of Sabria Win-12bis well when production was
restarted after an extended field shut-in period; and
° Decreased Resources due to the removal of future development plans for
CS-5, CS Sil-10, CS Sil-1 & CS-8bis.
Romania
For Romania, the Moftinu gas discoveries have been reclassified from Contingent
Resources to Reserves. The 2016 year-end risked 1C and 2C Contingent Resources
were 547 Mboe and 1,615 Mboe, respectively. In comparison, the CPR 1P and 2P
Reserves for Moftinu were 1,076 Mboe and 2,543 Mboe, respectively.
Net Present Value - After Tax, Using Forecast Prices
September 30, 2017 (CPR) December 31, 2016 (NI 51-101)
0 % 10 % 15 % 0 % 10 % 15 %
(US$ millions) (US$ millions)
TUNISIA
Proved
Producing (9.3 ) (4.4 ) (3.0 ) 3.7 7.4 7.9
Non-Producing (1.0 ) (0.5 ) (0.4 ) 9.9 8.1 7.0
Undeveloped 6.3 3.1 1.6 17.2 4.9 1.8
Total Proved (1P) (4.0 ) (1.8 ) (1.8 ) 30.8 20.4 16.7
Probable 89.5 41.7 28.2 218.7 87.4 61.6
Total Proved & 85.5 39.9 26.4 249.5 107.8 78.3
Probable (2P)
ROMANIA
Proved
Producing - - - - - -
Non-Producing - - - - - -
Undeveloped 14.3 12.5 11.8 - - -
Total Proved (1P) 14.3 12.5 11.8 - - -
Probable 38.8 31.0 27.9 - - -
Total Proved & 53.1 43.5 39.7 - - -
Probable (2P)
TOTAL COMPANY
Proved
Producing (9.3 ) (4.4 ) (3.0 ) 3.7 7.4 7.9
Non-Producing (1.0 ) (0.5 ) (0.4 ) 9.9 8.1 7.0
Undeveloped 20.6 15.6 13.4 17.2 4.9 1.8
Total Proved (1P) 10.3 10.7 10.0 30.8 20.4 16.7
Probable 128.3 72.7 56.1 218.7 87.4 61.6
Total Proved & 138.6 83.4 66.1 249.5 107.8 78.3
Probable (2P)
Net present values for Serinus' Reserves increased by 155% and 12% for 1P and
2P Reserves, respectively. The contributing factors to the $6.5 million
increase in the 1P PV10 valuation were:
· The reclassification of the Moftinu gas discoveries in Romania to
Reserves from Contingent Resources added US$12.5 million to the 1P PV10
valuation, more than offsetting the US$6.0 million decrease to the 1P PV10
valuation in Tunisia;
· Lower Brent oil price forecast in the CPR versus the 2016 year-end
Reserve report decreased the net present values for Tunisia;
· The reclassification of Chouech Es Saida, Ech Chouech, and Sanghar
from Reserves to Contingent Resources contributed to the decreased net present
values for Tunisia;
· Sabria 1P Reserves capital expenditures increased by US$4.0 million
thereby having a negative impact of Sabria net present values;
· Higher assumed oil price differential to Brent for Tunisia oil sales
had negative impact on Tunisia net present values; and
· Higher estimated annual field operating costs for Sabria.
Gross Contingent Resources - Romania and Tunisia
In addition to the 1P and 2P Reserves assigned to the Company's properties in
Romania and Tunisia, Contingent Resources are also assigned to the Moftinu
discovery in Romania and the Chouech Es Saida, Ech Chouech and Sanghar fields
in Tunisia.
TUNISIA - Contingent Resources
Resource Volumes (risked) AT NPV (risked)
Oil/Liqui Gas BOE 0 % 10 % 15 % Probab
ds ility
of
Develo
pment
(Mbbl) (MMcf) (Mboe) (US$ millions)
1C Contingent 544 1,166 738 (17.6 ) (7.2 ) (4.3 ) 90 %
Resources
2C Contingent 1,169 2,482 1,583 (8.3 ) 7.7 9.1 90 %
Resources
3C Contingent 2,213 4,691 2,995 19.3 25.8 20.8 90 %
Resources
ROMANIA - Contingent Resources
Resource Volumes (risked) AT NPV (risked)
Oil/Liqui Gas BOE 0 % 10 % 15 % Probab
ds ility
of
Devel
opment
(Mbbl) (MMcf) (Mboe) (US$ millions)
1C Contingent 3 1,683 284 5.8 4.8 4.4 90 %
Resources
2C Contingent 15 5,707 966 26.0 17.7 14.8 90 %
Resources
3C Contingent 30 9,271 1,575 45.6 25.2 19.1 90 %
Resources
For Romania, the Contingent Resources reflect untested additional zones that
require production testing to establish the ability of these zones to produce
at commercial rates. For Tunisia, the Contingent Resources classification for
the Chouech Es Saida field is due to the field being shut-in since late
February 2017 and the Company has not established a firm timeline as to when
these resources will be brought back onto production.
Competent Person's Price Forecasts
RPS used the following commodity price forecasts in preparing its evaluation of
Serinus' oil and gas properties:
Tunisia Domestic Gas Romania Gas Price
Brent Sabria Chouech Moftinu
(US$/Bbl) (US$/Mcf) (US$/Mcf) (US$/MMbtu)
Q4 2017 53.19 6.21 5.95 -
2018 55.00 6.42 6.15 4.91
2019 57.50 6.71 6.43 5.14
2020 59.00 6.89 6.60 5.27
2021 62.80 7.33 7.03 5.61
2022 66.50 7.76 7.44 5.94
2023 69.00 8.06 7.72 6.16
2024 72.00 8.41 8.06 6.43
2025 76.30 8.91 8.54 6.81
2026 79.00 9.22 8.84 7.05
2027 85.33 9.96 9.55 7.62
2028 87.04 10.16 9.74 7.77
2029 88.78 10.37 9.93 7.92
2030 90.55 10.57 10.13 8.08
2031 92.36 10.78 10.33 8.24
2032 94.21 11.00 10.54 8.41
2033 96.10 11.22 10.75 8.58
2034 98.02 11.44 10.97 8.75
2035 99.98 11.67 11.19 8.92
Abbreviations
bbl Barrel(s) bbl/d Barrels per day
boe Barrels of Oil Equivalent boe/d Barrels of Oil Equivalent per day
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 per
Equivalent day
MMcfe Million Cubic Feet MMcfe/d Million Cubic Feet Equivalent per
Equivalent day
Mboe Thousand boe Bcf Billion Cubic Feet
MMboe Million boe Mcm Thousand Cubic Metres
CAD Canadian Dollar MMbtu Million British Thermal Units
USD U.S. Dollar
Cautionary Statement:
BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
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. Serinus Energy Inc.
Calvin Brackman Jeffrey Auld
Vice President, External Relations & Strategy Chief Executive Officer
Tel.: +1-403-264-8877 Tel.: +1-403-264-8877
cbrackman@serinusenergy.com jauld@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.© 2017 GlobeNewswire
