Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN) announces that it has temporarily shut-in production at the Chouech Es Saida field in Tunisia. This field was previously shutin on January 10, 2017, as announced in a press release on January 16, 2017 with production start-up resuming on February 1, 2017. The current shut-in is again due to another announced strike notice issued by Tunisia General Trade Union (“UGTT”) representing the Company’s workers at the Chouech Es Saida field. This strike notice calls for a 5-day strike in response to the Company laying off 14 of the 52 Chouech Es Saida employees for economic redundancy reasons, even though these lay-offs are within the right of the Company and strictly follow the appropriate laws, work code and regulations. The UGTT has also initiated an illegal sit-in at the field beginning on February 27, 2017 in which the only participants are the 5 affected laid off personal currently at the field. The remaining unaffected employees have not joined this illegal sit-in. Due to the illegal sit-in of the facility and the proposed strike with production stoppage, the Company initiated to shut-in production for safety and security reasons.
UGTT Tataouine’s decision to not cooperate with the Company on a fair and equitable redundancy process has led the Company to the decision to not bring production back online until it has satisfactory resolution of the economic redundancy issue.
The average daily production from the field for the month of February, 2017, to date was 130 barrels of oil equivalent per day (“BOE/d”).
In the process of shutting in production, the Company will prepare for the orderly and safe mobilization of all employees out of the Chouech Es Saida facilities over the coming days. During this shut-in period, the Company will continue to engage in dialogue with UGTT and the Government of Tunisia regarding the economic redundancy process with the full hope that the UGTT realizes that the preservation of the 38 remaining jobs at the Chouech Es Saida field is preferable to a prolonged period of labour action that will benefit no one. Only with this realization will the production at Chouech Es Saida be brought back online. 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.
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.
Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.
Translation: This news release has been translated into Polish from the English original.
Forward-looking Statements This release contains forward-looking information including statements regarding the use of proceeds from the Offering and expected results. The use of any of the words “target”, “plans”, "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Such forward-looking information is based on management’s expectations and assumptions, including that expectations and assumptions concerning the Company’s projected capital investment levels, the flexibility of capital spending plans and the associated source(s) of funding, and the ability of the Company’s drilling program to enhance production. Forward-looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: any of the assumptions on which such forward-looking information is based vary or prove to be invalid, including the availability of certain equipment and services and the Company’s access to such equipment and services, political, social, fiscal, legal and economic risks in the countries in which the Company operates, partner or counter-party risk, geological, technical, drilling and processing problems and the other risks identified in the Company’s most recent revised Annual Information Form under the “Risk Factors” section, the Company’s most recent management's discussion and analysis, the final prospectus for the Offering and the Company’s other public disclosure, available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause actual results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information included in this release is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.