Serinus Energy Plc Operational Update
October 18 2018 - 2:00AM
Serinus Energy plc (“
Serinus”,
“
SEN” or the “
Company”)
(AIM:SENX, WSE:SEN), announces an operational update.
Romania
The Moftinu gas plant is completed and able to
operate at pressure with sustained production, but is waiting for
the installation of the Low Temperature Separation (“LTS”) unit and
the Triethylene Glycol (“TEG”) unit (together, the “Units”), as
previously announced.
Since 21 August 2018, the Company has been
awaiting access codes from Romania’s National Pipeline Operator,
Transgaz, to start experimental commercial gas production during
the commissioning of the gas plant, as is the legal right of the
Company. Transgaz has so far denied the Company’s gas production
into the Transgaz system citing that the gas quality is not
according to their network specifications due to minimal quantities
of water. The Company believes that the very high quality of gas,
in excess of 90% methane, should be acceptable into the Transgaz
system. Transgaz has maintained that even the very small percentage
of water, 0.21% maximum, means that this gas cannot be injected
into the system and that until the Units are in place, no gas sales
can be accommodated.
It is the Company’s view that Romanian law
provides for such minor quality differentials during the proscribed
experimental production phase and as such the Company is legally
entitled to provide this gas to the system. The Company believes
that the gas from the Moftinu wells is within the specifications
that would allow Transgaz to accept this gas with no discernible
impact on the integrity of the Transgaz System.
The Company will continue to pursue the
acceptance of this gas into the Transgaz system. Regardless, the
Company will be in a position to remove any minor residual water
once the Units are installed and there are no further issues that
would prevent the Company moving to full production.
The latest timeline provided by the EPC
Contractor is that the Factory Acceptance Tests for the Units will
be conducted at the manufacturing facility in Canada on or around
17 November 2018 and the Units will be loaded onto a freighter for
shipment to Bremerhaven, Germany, on or around 22 November, with
installation, commissioning and production anticipated for December
2018. These Units are being constructed by a subcontractor, AVAL
Engineering of Calgary, Canada. AVAL’s delivery of the Units is now
expected to be more than 11 months after the original delivery
date. AVAL has provided project progress reports to our EPC
Contractor with six separate delivery dates over the last 11
months, all of which have been missed. The Company has been
required to send senior executives, alongside representatives from
our EPC Contractor to inspect the works completed by AVAL as the
progress reports from AVAL were unreliable. On consecutive visits,
the Serinus team, alongside our EPC Contractor have now been able
to verify the progress and are now in a position to have confidence
that work is progressing, and the current completion ex-works date
can be met. Once the Factory Acceptance Test is completed, the
shipment of the Units is estimated to take 10 days to reach Europe,
followed by a three-day shipping time by truck to the site. Once
the Units have arrived at the site, it is estimated that it will
take up to two weeks to install and commission the Units.
Tunisia
Discussions with Tunisian authorities have
progressed and the Company believes that, subject to an
administrative procedure settlement, it will be in a position to
restart the Chouech Es Saida field in Tunisia in Q1 2019. The
Company believes that progress has been sufficient that it can now
take early steps to re-initiate production in this field. This
field has been shut-in since February 2017 due to labour unrest.
The Company has started the tendering process for long lead time
items and essential production support services. Prior to shut-in,
the Chouech Es Saida field produced an average of 488 barrels of
oil equivalent in Q4 2016.
About Serinus
Serinus is an international upstream oil and gas
exploration and production company that owns and operates projects
in Tunisia and Romania.
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR").
For further information, please refer to
the Serinus website (www.serinusenergy.com) or contact the
following:
Serinus Energy plc Jeffrey Auld, Chief Executive
Officer Calvin Brackman, Vice President, External Relations &
Strategy |
+1-403-264-8877 |
|
Numis Securities Limited (Nominated Adviser and
Joint Broker) John Prior Paul Gillam Ben Stoop |
+44 (0) 20
7260 1000 |
|
GMP
FirstEnergy (Joint Broker) Hugh Sanderson Jonathan
Wright |
+44 (0) 20
7448 0200 |
|
Camarco (Financial PR) Billy Clegg Owen
Roberts |
+44 (0) 20
3781 8334 |
|
Forward Looking Statement
DisclaimerThis news release includes forward looking
information and statements within the meaning of securities laws.
Such statements relate to the Corporation’s or management’s
objectives, projections, estimates, expectations, or predictions of
the future and can be identified by words such as “plans”,
“assumes”, “will”, “anticipate” and “may” or variations of such
words. These statements are based on certain assumptions and
analyses by the Corporation that reflect its experience and
understanding of future developments. Such statements are subject
to a number of uncertainties, including, but not limited to,
continued listing on the Warsaw Stock Exchange and AIM, the
Corporation’s ability to realize the anticipated benefits of the
delisting and other factors identified in the Corporation’s filings
with regulatory authorities in Canada. Many of these uncertainties
are beyond the Corporation’s control and, therefore, may cause
actual actions or results to differ from those expressed or implied
herein. The Corporation disclaims any intention or obligation to
update or revise any forward looking statements, whether as a
result of new information, future events or otherwise, unless
required by law.
Translation: This news release has been
translated into Polish from the English original.
Semco (NYSE:SEN)
Historical Stock Chart
From Sep 2024 to Oct 2024
Semco (NYSE:SEN)
Historical Stock Chart
From Oct 2023 to Oct 2024