Serinus Energy plc ("Serinus", SEN) (SENX) announces the release of its interim results for the Three Months Ended 31 March 2020.
Serinus Energy plc (Serinus), has continued to operate safely and effectively through the COVID-19 crisis, with the successful implementation of operational and monitoring protocols to ensure the health and safety of our employees.
Medical teams are monitoring our staff in both Tunisia and Romania and all staff are safe and healthy. The Company continues to operate effectively whilst working remotely from all our offices.
For the three months ended 31 March 2020, average production increased by 2,000 boe/d to 2,317 boe/d (2019 - 317 boe/d), comprised of 1,746 boe/d (2019 nil) in Romania and 571 boe/d (2019 317 boe/d) in Tunisia.
The Group exited March 2020 with a production rate of 2,701 boe/d comprised of 2,064 boe/d in Romania and 637 boe/d in Tunisia.
Successfully drilled, completed and tested M-1004 in Romania at a rate of 6.0 MMscf/d (approximately 1,000 boe/d) from three perforated zones and brought onto production in February.
Due to the restrictions caused by COVID-19 since mid-March, mobilization of the contractor to execute the planned 3D seismic acquisition programme in the Berveni area of Romania was postponed.
The Company has entered cooperative discussions with the Romanian regulatory authorities regarding the disruptions caused by the restrictions imposed to address the COVID-19 crisis. Critical to these discussions are the remedies that the authorities can provide to allow operating companies in Romania the ability to fulfil their commitments given the delays imposed by the COVID-19 crisis.
For the three months ended 31 March 2020 the Company generated $7.9 million (2019 - $1.7 million) in gross revenue or $7.4 million (2019 - $1.5 million) net of royalties. This was comprised of $5.8 million (2019 - $nil) in Romania and $2.1 million (2019 - $1.7 million) in Tunisia.
For the three months ended 31 March 2020, funds from operations amounted to $2.5 million (2019 - $nil).
For the three months ended 31 March 2020, realised crude oil price per barrel (bbl) averaged $40.80 (2019 $60.90) and realised natural gas price per thousand cubic feet (mcf) averaged $6.03 (2019 - $9.42).
Capital expenditures for the three months ended 31 March 2020 of $2.7 million (2019 - $1.1 million).
Production expense per barrel of oil equivalent (boe) for the three months ended 31 March 2020 averaged $9.30 (2019 - $22.47) primarily due to the lower cost production from the Moftinu field.
Given the ongoing uncertainty of the COVID-19 crisis and the difficulty in moving manpower and equipment during this crisis all future capital investment plans have been postponed. Minimal maintenance capital will be allocated to ensure the safe and continued operation of our production facilities.
At the outset of the current crisis, the Group began discussions with its lender, the European Bank for Reconstruction and Development (EBRD), to assess the options available during this period of uncertainty. These discussions are progressing, and, at this time, the directors remain confident that a solution will be implemented ahead of the 30 June 2020 instalment.