Serinus Energy Announces Preliminary Annual Financial Results for 2020

Source: www.gulfoilandgas.com 3/26/2021, Location: Africa

Serinus Energy plc (“Serinus” ) (AIM:SENX, WSE:SEN) is pleased to announce its preliminary financial results for 2020.

OPERATIONAL
- Serinus Energy plc and its subsidiaries (“Serinus”, the “Company”, or the “Group”) have continued to operate safely and effectively through the COVID-19 pandemic, with the successful implementation of operational and monitoring protocols to ensure the health and safety of our employees.

- Production for the year averaged 2,340 boe/d (2019 - 1,389 boe/d), comprised of;
- Romania - 1,788 boe/d (2019 - 961 boe/d).
- Tunisia - 552 boe/d (2019 - 428 boe/d).

- Serinus exited December 2020 with a production rate of 2,122 boe/d, with a December average of 2,061 boe/d (Romania 1,561 boe/d and Tunisia 500 boe/d). Production declined over the fourth quarter due to delays in specialist pump technicians crossing national borders due to COVID-19 restrictions as well as natural declines in Romania.

- 1P audited reserves at 31 December 2020 increased by 101% to 5.8 MMboe and 2P audited reserves decreased by 9% to 9.6 MMboe.

- The Company received approval from the Romanian National Agency for Mineral Resources (“NAMR”) to amend the last outstanding work commitment for the third exploration phase of the Satu Mare Concession and was granted a 12-month concession license extension until 27 October 2021 plus additional time equivalent to the duration of the “Romanian State of Emergency/Alert” which began on 9 March 2020 and currently remains in force.

- The amendment replaces the previous seismic commitment, which the company was unable to fulfill due to the restrictions imposed as a result of the COVID-19 pandemic, with a modified work commitment to drill two wells, one to be drilled to a depth of 1,000 metres and the second to be drilled to a depth of 1,600 metres.

- During 2020 the Company permitted and finalised plans to drill the M-1008 development well which will qualify as one of these commitment wells.

- On 23 February 2021, the Company announced the M-1008 well flowed at 4.0 MMscf/d (approximately 666 boe/d) from two perforated zones and will be tied into the Moftinu Gas Plant.

FINANCIAL
- Completed a successful placing of 787,936,852 ordinary shares to raise gross proceeds of $21.3 million announced on 27 November 2020, of which $16.5 million was paid to the EBRD to retire the Convertible Loan.

- During 2020, Serinus generated revenues of $24.0 million (2019 - $24.4 million), comprised of $16.9 million (2019 - $15.2 million) from Romania and $7.1 million (2019 - $9.2 million) from Tunisia.

- Capital expenditures of $5.5 million (2019 - $4.9 million) were incurred for the year and predominantly consisted of costs incurred drilling M-1004, and preparation work for M-1008.

- Funds from operations for the year was $7.3 million (2019 - $8.1 million) and normalized EBITDA was $6.6 million (2019 - $7.0 million).

- Net realised prices ($/boe) averaged $28.06 (2019 - $48.12), a decrease of 42%, comprised of;
- Realised oil price ($/bbl) averaged $35.56 (2019 - $61.67), a decrease of 42%.
- Realised gas price ($/Mcf) averaged $4.38 (2019 - $7.27), a decrease of 40%.

- Production expenses ($/boe) were reduced by 30% to $9.67 (2019 - $13.78) largely due to increased production and careful cost management.

- Cash balance as at 31 December 2020 was $6.0 million. As stated in the Company’s news release on 22 March 2021, upon the approval and registration of BDO London office as a qualified third-party auditor in Poland by the Polish Securities Regulator, Serinus will be able to release its audited Annual Report for 2020, which will include the BDO audit opinion.


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