Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN) announces that it has resumed production at the Chouech Es Saida field in Tunisia. This field was initially shut-in on January 10, 2017, in anticipation of a three-day strike with production stoppage, as voted for by the Company’s employees at the Winstar Chouech Es Saida facilities, which began at midnight January 11, 2017. The labour action continued with a sit-in that persisted after the communicated work action, with the Company being unable to bring production back on line for safety and security reasons.
For the past two years, the Company has been engaged in ongoing dialogue with the Tunisia General Trade Union (“UGTT”) regarding the need for the Company to reduce operating costs at Chouech Es Saida due to the economic situation in the sector. Through ongoing dialogue between the Company and UGTT during this work action, the Company has agreed to resume production at Chouech Es Saida as an act of good faith in exchange for the ending of the sit-in and the agreement of UGTT to cooperate in the ongoing economic redundancy process. The ending of the sit-in on January 29, 2017, has removed the safety and security concerns the Company had in continuing operations of the Chouech Es Saida field and the cooperation of UGTT in the economic redundancy program provides the Company with sufficient encouragement to re-start production as a gesture of goodwill. The staff reductions of the economic redundancy program are necessary for the Company to further reduce operating costs and to remain a viable Tunisian employer and producer of hydrocarbons.
The Company has procured a replacement electrical submersible pump for the CS-3 well and anticipates that this pump will be delivered to the Company by mid-February 2017. With the delivery of the pump, the Company will begin a workover program on the CS-3 well and install the new pump in the well. It is estimated that the CS-3 well will back on production by early April, 2017.
About the Company
Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Tunisia and Romania. The common shares of the Company trade under trading symbol “SEN” on both the WSE (Warsaw Stock Exchange) and the TSX.
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 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.
The main shareholder of the Company is Kulczyk Investments S.A., an international investment house founded by Polish businessman Dr. Jan Kulczyk.
This press release contains certain statements relating to Serinus that are based on the expectations of Serinus, as well as assumptions made by, and information currently available to, Serinus, which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Serinus anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as “forecast”, “future”, “may”, “will”, “expect”, “anticipate”, “believe”, “potential”, “enable”, “plan”, “continue”, “contemplate”, “pro-forma”, or other comparable terminology. In particular, this press release makes reference to the timing and listing of the Company’s common shares on the TSX, resumption of trading on the Warsaw Stock Exchange and the anticipated increased working interest in the Satu Mare concession. Readers are cautioned that such events are subject to certain conditions being satisfied. Accordingly, there is no assurance that such conditions will be satisfied and therefore no assurance that the TSX listing, resumption of trading and increased working interest will be obtained in the time frames anticipated or at all. Many factors could cause the performance or achievement by Serinus to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include the failure to satisfy the TSX listing conditions and to resume trading on the Warsaw Stock Exchange in a timely manner, failure to satisfy the conditions to obtain the increased interest in the Satu Mare concession, risks relating to the integration of Serinus and Winstar, the failure to realize anticipated synergies and incorrect assessments of the value of Winstar. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Serinus is not under any duty to update any of the forward-looking statements after the date of this press release or to conform such statements to actual results or to changes in the Company’s expectations and Serinus disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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