Serinus Energy plc (LON:SENX) recently released an operational update, reporting on the progress of the company’s various work programmes on its assets in Romania and Tunisia. DirectorsTalk Interviews caught up with Daniel Slater, Analyst at Arden Partners to discuss the news.
Q. Daniel, Serinus have provided an operational update on its assets in Romania and Tunisia, what were the key points you noted?
A. We were pleased to see all of the work programmes being progressed. These include ongoing well workovers in Tunisia, production drilling on Moftinu in Romania to begin in January, and planning for exploration drilling at Sancrai in Romania and installation of ESPs on Sabria in Tunisia as we move through 2021. These are all aimed at supporting and growing company production and cash flows.
Q. How do you see the outlook for the company?
A. We look for Serinus’ work programmes to support production and create overall growth going forward, driving higher cash flows which can then be redeployed into further asset work programmes.
Q. How do you view the company in terms of fair value?
A. Our risked NAV for the company is 6.7p/share, taking full account of the upcoming work programme and recent share issues.
Q. What is your view on the company as an investment?
A. We believe that Serinus Energy is well set to generate regular news flow from its work programme, and that that work programme should drive production and cash flow growth going forward. The low onshore cost profile helps protect margins and boost returns, and the balance sheet is now transformed as a result of the recent equity raise and full debt retirement. The company should be in for a very busy 2021.