Serinus Energy plc (LON:SENX) has announced its Interim Financial Results for the three months ended 31 March 2024.

Q1 2024 HIGHLIGHTS

FINANCIAL

·       Revenue for the three months ended 31 March 2024 was $4.6 million (31 March 2023 – $4.9 million)

·       EBITDA for the three months ended 31 March 2024 was $0.9 million (31 March 2023 – $0.8 million)

·       Gross profit for the three months ended 31 March 2024 was $1.0 million (31 March 2023 – $0.9 million)

·       Net loss for the three months ended 31 March 2024 was $0.5 million (31 March 2023 – net loss $1.3 million)

·       The Group realised a net price of $80.24/boe for the three months ended 31 March 2024 (31 March 2023 – $78.87/boe), comprising:

o  Realised oil price – $84.27/bbl (31 March 2023 – $80.07/bbl)

o  Realised natural gas price – $10.99/Mcf (31 March 2023 – $12.72/Mcf)

·       The Group’s operating netback decreased for the three months ended 31 March 2024 and was $33.04/boe (31 March 2023 – $39.52/boe), in line with lower production volumes in Romania and significantly lower realised gas prices, comprising:

o  Romania operating netback – negative $55.66/boe (31 March 2023 – $26.59/boe)

o  Tunisia operating netback – $40.16/boe (31 March 2023 – $43.92/boe)

·       Capital expenditures of $0.3 million for the three months ended 31 March 2024 (31 March 2023 – $2.4 million)

OPERATIONAL

·       Production in Chouech Es Saida continues to increase with the benefits of artificial lift programme

·       Long lead items for the Sabria W-1 sidetrack have been ordered and are on schedule. Discussions are on-going with Compagnie Tunisienne de Forage (CTF), the state rig company, regarding availability of rigs to perform this sidetrack

·       The Group completed lifting 62,930 bbl of Tunisian crude oil in the second half of March 2024 at an average price of $82.76/bbl with the cash proceeds of $3.2 million received in April 2024 (net of $2.0 million in monthly prepayments previously received)

·       The Moftinu Gas Field continues to produce at naturally declining rates

·       Production for the quarter averaged 635 boe/d, comprising:

o   Romania – 49 boe/d

o   Tunisia – 586 boe/d

·       The Group continued its excellent safety record with no Lost Time Incidents in first quarter of 2024

·       The Group has withdrawn from the Preferred Bidder status in Angola as it was unable to agree commercial terms with the Angolan authorities

OPERATIONAL UPDATE AND OUTLOOK

Serinus Energy is an oil and gas exploration, appraisal and development company which is incorporated under the Companies (Jersey) Law 1991.  The Company, through its subsidiaries (together the “Group”), acts as the operator for all of its assets and has operations in two business units: Romania and Tunisia.

The Group is currently focused on enhancing production from its Tunisian assets.  The large underdeveloped Sabria field offers significant opportunities in a well identified oilfield.  Investments in artificial lift and, in time, new wells offer near term production growth.  The Satu Mare Concession in Romania has excellent exploration potential that can offer the Company another Moftinu style shallow gas development.  Work continues and exploration targets have been identified.  The Moftinu gas field is a shallow gas field that has initial high production rates followed by natural declines.

ROMANIA

In Romania the Group currently holds the 2,950 km² Satu Mare Concession.  The Satu Mare Concession area includes the Moftinu Gas Project which was brought on production in April 2019 and has produced approximately 9.4 Bcf and $93.4 million of revenue to the end of 2023.  The Moftinu gas field is now nearing the end of its natural life.  The field has identified existing gas in uncompleted zones that can be economically completed and produced with higher gas prices and reduced windfall tax.

In addition to the Moftinu Gas Development Project the Satu Mare Concession holds several highly prospective exploration plays.  Serinus’ recently completed block wide geological review has highlighted the potential of multiple plays that have encountered oil and gas on the block.  Focus is on proven hydrocarbon systems, known productive trends that need further data, and studies of over 40 legacy wells on the concession area that have encountered oil and gas.  The concession is extensively covered by legacy 2D seismic, augmented by the Group’s own 3D and 2D acquisition programs that have further refined the identified prospects.  Putting this extensive evidence-based analysis together in a block wide review has allowed the Group to identify a pathway towards future exploration growth.

In October 2023, the Group was granted an exploration phase extension to the Satu Mare Concession in Romania. The Moftinu gas field has been declared a Commercial Area, all other areas of the Concession remain Exploration Area.  The exploration period extension is in two phases. The first phase of the extension is mandatory and is two years in duration starting on 28 October 2023. The work commitment for the first phase is the reprocessing of 100 kilometres of legacy 2D seismic as well as a 2D seismic acquisition program of 100 kilometres including processing the acquired seismic data. The second phase of the extension is optional and is two years in duration starting on 28 October 2025 with a work commitment of drilling one well within the concession area with no total drilling depth requirement stipulated.

Tunisia

The Group’s Tunisian operations are comprised of two concession areas.

The largest asset in the Tunisian portfolio is the Sabria field, which is a large oilfield with an independently estimated original in-place volume of 445 million barrels-of-oil-equivalent of which 1.6% has been produced to date.  Serinus considers this historically under-developed field to be an excellent asset for development work to significantly increase production in the near-term.  The Group has embarked on an artificial lift programme whereby the first pumps in the Sabria field will be installed.  Independent third-party studies suggest that the use of pumps in this field can have a material impact on production volumes. 

The Chouech Es Saida concession in southern Tunisia holds a producing oilfield that produces from four wells, three of which are produced using artificial lift.  Chouech Es Saida is a mature oilfield that benefits from active production management.  Underlying this oilfield are significant gas prospects.  These prospects lie in a structure that currently produces gas in an adjacent block.  Exploration of these lower gas zones became commercially possible with the recent construction of gas transportation infrastructure in the region.  Upon exploration success these prospects can be developed in the medium term, with the ability to access the near-by under-utilised gas transmission capacity.

FINANCIAL REVIEW

Liquidity, Debt And Capital Resources

During the three months ended 31 March 2024, the Group invested a total of $0.3 million (2023 – $2.4 million) on capital expenditures before working capital adjustments, out of which Romania incurred $nil million (2023 – $0.6 million) and Tunisia invested $0.3 million (2023 – $1.8 million).

The Group’s funds from operations for the three months ended 31 March 2024 were $1.2 million (2023 -funds used in operations of $0.8 million).  Including changes in non-cash working capital, the cash flow used in operating activities in 2024 was $0.3 million (2023 – cash flow from operating activities of $0.01 million).  The Group is debt-free and has adequate resources available to deploy capital into both operating segments.

(US$ 000s) Working Capital	31 March2024	31 December 2023
Current assets	10,754	11,341
Current liabilities	16,131	16,926
Working Capital	(5,377)	(5,585)

The working capital deficit at 31 March 2024 was $5.4 million (31 December 2023 – $5.6 million).

Current assets as at 31 March 2024 were $10.8 million (31 December 2023 – $11.3 million), a decrease of $0.5 million. Current assets consist of:

·      Cash and cash equivalents of $0.6 million (31 December 2023 – $1.3 million)

·      Restricted cash of $1.2 million (31 December 2023 – $1.2 million)

·      Trade and other receivables of $8.2 million (31 December 2023 – $8.1 million)

·      Product inventory of $0.8 million (31 December 2023 – $0.7 million)

Current liabilities as at 31 March 2024 were $16.1 million (31 December 2023 – $16.9 million), a decrease of $0.8 million. Current liabilities consist of:

·      Accounts payable of $7.9 million (31 December 2023 – $9.3 million)

·      Decommissioning provision of $6.7 million (31 December 2023 – $6.7 million)

o  Canada – $0.8 million (31 December 2023 – $0.8 million) which is offset by restricted cash in the amount of $1.2 million (31 December 2023 – $1.2 million) in current assets

o  Romania – $0.5 (31 December 2023 – $0.6 million)

o  Tunisia – $5.4 million (31 December 2023 – $5.3 million)

·      Income taxes payable of $1.3 (31 December 2023 – $0.8 million)

·      Current portion of lease obligations of $0.2 million (31 December 2023 – $0.1 million)

Non-Current Assets

Property, plant and equipment (“PP&E”) decreased to $55.3 million (31 December 2023 – $56.0 million), as a result of depreciation and depletion.  There were no additions or adjustments to exploration and evaluation assets (“E&E”) in the period. Right-of-use assets (“ROU”) increased to $0.8 million (31 December 2023 – $0.5 million) due to a new lease in Tunisia for our office and operating vehicles.

Funds From Operations

The Group uses funds from operations as a key performance indicator to measure the ability of the Group to generate cash from operations to fund future exploration and development activities.  The following table is a reconciliation of funds from operations to cash flow from operating activities:

	Period ended 31 March
(US$ 000s)	2024	2023
Cash flows from operations	(264)	14
Changes in non-cash working capital	1,471	(813)
Funds from (used in) operations	1,207	(799)
Funds from operations per share	0.01	0.00

Tunisia generated funds from operations of $2.4 million (2023 – $0.5 million) and Romania used funds in operations of $0.4 million (2023 – generated funds from operations of $0.1 million).  Funds used at the corporate level were $0.8 million (2023 – $1.4 million) resulting in net funds from operations of $1.2 million (2023 funds used in operations of $0.8 million).

Production

Period ended 31 March 2024	Tunisia	Romania	Group	%
Crude oil (bbl/d)	494	–	494	78%
Natural gas (Mcf/d)	553	292	845	22%
Condensate (bbl/d)	–	–	–
Total production (boe/d)	586	49	635	100%
Period ended 31 March 2023	Tunisia	Romania	Group	%
Crude oil (bbl/d)	468	–	468	68%
Natural gas (Mcf/d)	361	979	1,340	32%
Condensate (bbl/d)	–	–	–	0%
Total production (boe/d)	528	163	691	100%

For the three months ended 31 March 2024 production volumes were 635 boe/d, a decrease of 56 boe/d against the comparative period (31 March 2023 – 691 boe/d). 

Romania’s production volumes were 49 boe/d in the period (31 March 2023 – 163 boe/d).  Production continues to reflect the natural decline profile of shallow gas fields.

Tunisia’s production volumes increased to 586 boe/d against comparative period (31 March 2023 – 528 boe/d) as a result of the ongoing artificial lift programme at the Chouech es Saida field. The Group’s oil fields’ maintenance programme and on-going field management at both the Sabria and Chouech es Saida oil fields aims to further optimise production.

Oil And Gas Revenue

(US$ 000s)
Period ended 31 March 2024	Tunisia		Romania		Group		%
Oil revenue	3,778		–		3,778		82%
Natural gas revenue	585		249		834		18%
Condensate revenue	–		–		–		0%
Total revenue	4,363		249		4,612		100%
Period ended 31 March 2023	Tunisia		Romania		Group		%
Oil revenue	3,360		–		3,360		69%
Natural gas revenue	305		1,210		1,515		31%
Condensate revenue	–		–		–		0%
Total revenue	3,665		1,210		4,875		100%
REALISED PRICE
Period ended 31 March 2024		Tunisia		Romania		Group
Oil ($/bbl)		84.27		–		84.27
Natural gas ($/Mcf)		11.63		9.74		10.99
Condensate ($/bbl)		–		–		–
Average realised price ($/boe)		81.99		58.45		80.24
Period ended 31 March 2023		Tunisia		Romania		Group
Oil ($/bbl)		80.07		–		80.07
Natural gas ($/Mcf)		9.39		13.97		12.72
Condensate ($/bbl)		–		–		–
Average realised price ($/boe)		77.36		83.83		78.87

For the three months ended 31 March 2024, the Group generated revenue of $4.6 million, a decrease of $0.3 million against the comparative period (31 March 2023 – $4.9 million). The decrease is due to production decline in Romania offset by increase in the average realised price to $80.24/boe (31 March 2023 – $78.87/boe).

The Group’s average realised oil price increased by $4.2/bbl to $84.27/bbl (31 March 2023 – $80.07/bbl), and average realised natural gas prices decreased by $1.73/Mcf to $10.99/Mcf (31 March 2023 – $12.72/Mcf).

Under the terms of the Sabria concession agreement the Group is required to sell 20% of its annual crude oil production from the Sabria concession into the local market, which is sold at an approximate 10% discount to the price obtained on its other crude sales.  The remaining crude oil production was sold to the international market. 

Royalties

	Period ended 31 March
(US$ 000s)	2024	2023
Tunisia	536	457
Romania	11	63
Total	547	520
Total ($/boe)	9.52	8.42
Tunisia oil royalty (% of oil revenue)	12.5%	12.9%
Romania gas royalty (% of gas revenue)	4.4%	5.8%
Total (% of revenue)	11.9%	10.7%

For the three months ended 31 March 2024 royalties remained at $0.5 million while the Group’s average royalty rate increased to 11.9% (2023 – 10.7%). 

In Romania, the royalty is calculated using a reference price that is set by the Romanian authorities and not the realised price to the Group.  The reference gas prices in the first quarter were higher than the realised prices. Romanian royalty rates vary based on the level of production during the quarter.  Natural gas royalty rates range from 3.5% to 13.0% and condensate royalty rates range from 3.5% to 13.5%.

In Tunisia, royalties vary based on individual concession agreements.  Sabria royalty rates vary depending on a calculation of cumulative revenues, net of taxes, as compared to cumulative investment in the concession, known as the “R factor”.  As the R factor increases, so does the royalty percentage to a maximum rate of 15%.  During the first quarter of 2024, the royalty rate remained unchanged in Sabria at 10% for oil and 8% for gas.  Chouech Es Saida royalty rates are flat at 15% for both oil and gas.

Production Expenses

	Period ended 31 March
(US$ 000s)	2024	2023
Tunisia	1,689	1,127
Romania	475	764
Canada	1	21
Group	2,165	1,912
Tunisia production expense ($/boe)	31.75	23.79
Romania production expense ($/boe)	111.57	52.88
Total production expense ($/boe)	37.68	30.93

For the three months ended 31 March 2024 production expenses were $2.2 million, an increase of $0.3 million against the comparative period (31 March 2023 – $1.9 million).  Per unit production expenses increased by $6.75/boe to $37.68/boe (31 March 2023 – $30.93/boe).

Tunisia’s production expenses increased by $0.6 million compared to the comparative period of prior year and comprised $1.7 million (31 March 2023 – $1.1 million), with per unit production expenses increasing to $31.75/boe (2023 – $23.79/boe) which is consistent with increased production and remaining high inflationary environment in Tunisia.

Romania’s production expense decreased to $0.5 million against the comparative period (31 March 2023 – $0.8 million), with the per unit expenses increasing to $111.57/boe (2023 – $52.88/boe) due to naturally declining production and the impact of inflation in Romania.

Canadian production expenses relate to the Sturgeon Lake assets, which are not producing and are incurring minimal operating costs to maintain the property.

Operating Netback

Serinus uses operating netback as a key performance indicator to assist management in understanding Serinus’ profitability relative to current market conditions and as an analytical tool to benchmark changes in operational performance against prior periods.  Operating netback consists of petroleum and natural gas revenues less direct costs consisting of royalties and production expenses.  Netback is not a standard measure under IFRS and therefore may not be comparable to similar measures reported by other entities.

($/boe)
Period ended 31 March 2024	Tunisia	Romania	Group
Sales volume (boe/d)	585	47	632
Realised price	81.99	58.45	80.24
Royalties	(10.08)	(2.54)	(9.52)
Production expense	(31.75)	(111.57)	(37.68)
Operating netback	40.16	(55.66)	33.04
Period ended 31 March 2023	Tunisia	Romania	Group
Sales volume (boe/d)	526	160	687
Realised price	77.36	83.83	78.87
Royalties	(9.65)	(4.36)	(8.42)
Production expense	(23.79)	(52.88)	(30.93)
Operating netback	43.92	26.59	39.52

The Group’s operating netback decreased to $33.04/boe (31 March 2023 – $39.52/boe) due to lower production volumes in Romania and significantly lower realised gas prices.

The Group however generated a gross profit of $1.0 million (31 March 2023 – $0.9 million) due to increased production volumes in Tunisia complimented by favourable oil prices in the first quarter of 2024. 

Earnings Before Interest, Taxes, Depreciation And Amortization (“EBITDA”)

Serinus uses EBITDA as a key performance indicator to assist management in understanding Serinus’ cash profitability.  EBITDA is computed as net profit/loss and adding back interest, taxation, depletion & depreciation, and amortisation expense.  EBITDA is not a standard measure under IFRS and therefore may not be comparable to similar measures reported by other entities. For the three months ended 31 March 2024, the Group’s EBITDA was $0.9 million (31 March 2023 – $0.8 million).

	Period ended 31 March
(US$ 000s)	2024	2023
Net loss	(491)	(1,269)
Finance costs, including accretion	36	421
Depletion and amortization	800	1,289
Gain on disposal of right-of-use assets	(37)	–
Decommissioning provision recovery	(11)	(17)
Tax expense	628	372
EBITDA	925	796

Windfall Tax

	Period ended 31 March
(US$ 000s)	2024	2023
Windfall tax	70	286
Windfall tax ($/Mcf – Romania gas)	2.64	3.24
Windfall tax ($/boe – Romania gas)	16.44	19.79

During first quarter of 2024, the Group incurred windfall taxes in Romania of $0.1 million (2023 – $0.3 million).  The decrease is directly related to lower average realised gas price which decreased to $9.74/Mcf in the first quarter of 2024 from an average of $13.97/Mcf in the same period of last year. 

In Romania, the Group is subject to a windfall tax on its natural gas production which is applied to supplemental income once natural gas prices exceed 47.53 RON/MWh.  This supplemental income is taxed at a rate of 60% between 47.53 RON/MWh and 85.00 RON/MWh and at a rate of 80% above 85.00 RON/MWh.  Expenses deductible in the calculation of the windfall tax include royalties and capital expenditures limited to 30% of the supplemental income below the 85.00 RON/MWh threshold.

Depletion And Depreciation

	Period ended 31 March
(US$ 000s)	2024	2023
Tunisia	732	864
Romania	37	394
Corporate	31	31
Total	800	1,289
Tunisia ($/boe)	13.74	18.25
Romania ($/boe)	8.80	27.27
Total ($/boe)	13.92	20.85

For the three months ended 31 March 2024 depletion and depreciation expense decreased to $0.8 million (31 March 2023 – $1.3 million), being a per unit decrease of $6.93/boe to $13.92/boe (31 March 2023 – $20.85/boe).  The decrease is primarily due to lower depletable base on the Group’s assets and declining production in Romania.

General And Administrative (“G&A”) Expense

	Period ended 31 March
(US$ 000s)	2024	2023
G&A expense	905	1,360
G&A expense ($/boe)	15.75	22.01

G&A costs decreased during the first quarter of 2024 to $0.9 million (31 March 2023 – $1.4 million) despite the ongoing high inflationary environment. Per unit G&A costs decreased by $6.26/boe to $15.75/boe (31 March 2023 – $22.01/boe).

Share-Based Payment

	Period ended 31 March
(US$ 000s)	2024	2023
Share-based payment	–	1
Share-based payment ($/boe)	–	0.02

No share-based payment expense was recognised in first quarter of 2024  (31 March 2023 – $1 thousand) since no options were granted during the period and those options which are outstanding at 31 March 2023 to executive directors and employees vested in prior periods.

Net Finance Expense

	Period ended 31 March
(US$ 000s)	2024	2023
Interest on leases	32	–
Accretion on decommissioning provision	425	387
Foreign exchange and other	(421)	34
	36	421

For the three months ended 31 March 2024 net finance expenses decreased to $0.04 million against the comparative period (31 March 2023 – $0.4 million) predominantly due to foreign exchange gains arising from monetary assets and liabilities denominated in foreign currencies.

Taxation

For the three months ended 31 March 2024 tax expense was $0.6 million (31 March 2023 – $0.4 million). The change in income tax expense is due to increased taxable income of the Group’s operations in Tunisia.

Share Data

As at the date of issuing this report, the following are the Directors stock options outstanding, Long Term Incentive Program (“LTIP”) awards, and shares owned up to the date of this report.

	Share Options	LTIP Awards	Shares
Executive Directors:
Jeffrey Auld	2,230,000	3,153,603	1,338,875
Non-Executive Directors:
Lukasz Redziniak	–	–	302,000
Jim Causgrove	–	–	290,000
Jon Kempster [1]	–	–	60,261
	2,230,000	3,153,603	1,991,136

As of the date of issuing this report, management is aware of the following shareholders holding more than 3% of the ordinary shares of the Group, as reported by the shareholders to the Group:

Xtellus Capital Partners Inc	10.02%
Crux Asset Management	8.42%
Michael Hennigan	7.94%
Quercus TFI SA	7.18%
Marlborough Fund Managers	4.15%
Spreadex LTD	4.10%

The Directors are responsible for the maintenance and integrity of the corporate and financial information on the Group’s website.  Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Going Concern

The Group’s business activities, together with the factors likely to affect its future development and performance are set out in the Operational Update and Outlook.  The financial position of the Group is described in these condensed consolidated interim financial statements and in the Financial Review.

The Directors have given careful consideration to the appropriateness of the going concern assumption, including cashflow forecasts through the going concern period and beyond, planned capital expenditure and the principal risks and uncertainties faced by the Group.  This assessment also considered various downside scenarios including oil and gas commodity prices and production rates.  Following this review, the Directors are satisfied that the Group has sufficient resources to operate and meet its commitments as they come due in the normal course of business for at least 12 months from the date of these condensed consolidated interim financial statements.  Accordingly, the Directors continue to adopt the going concern basis for the preparation of these condensed consolidated interim financial statements.

Declarations Of The Board Of Directors Concerning Accounting Policies

The Board of Directors of Serinus Energy confirms that, to the best of their knowledge, the condensed consolidated interim financial statements together with comparative figures have been prepared in accordance with applicable accounting standards and give a true and fair view of the state of affairs and the financial result of the Group for the period ended 31 March 2024.

The Financial Review in this report gives a true and fair view of the situation on the reporting date and of the developments during the period ended 31 March 2024, and include a description of the major risks and uncertainties.

Serinus Energy plc (LON:SENX) has announced its Annual Financial Results for 2023.

2023 HIGHLIGHTS

FINANCIAL

·       Revenue for the year ended 31 December 2023 was $17.9 million (2022 – $49.3 million)

·       Cash generated from operations for the year ended 31 December 2023 was $1.9 million (2022 – $7.4 million)

·       EBITDA for the year ended 31 December 2023 was $2.1 million (2022 – $12.7 million)

·       Gross profit for the year was $2.5 million (2022 – $12.9 million)

·       The Group recognised impairment of the Romanian assets in the amount of $7.0 million (2022 – $1.9 million) reflecting the depletion of the Moftinu gas field

·       The Group’s production expense averaged $34.78/boe (2022 – $31.82/boe)

·       The Group realised a net price of $77.58/boe for the year ended 31 December 2023 (2022 – $149.46/boe), comprising:

o   Realised oil price – $79.85/bbl (2022 – $94.39/bbl)

o   Realised natural gas price – $11.94/Mcf (2022 – $34.53/Mcf)

·       The Group’s operating netback decreased during the year ended 31 December 2023, in line with the commodity prices and declining production in Romania, and was $33.89/boe (2022 – $107.59/boe), comprising:

o   Romania operating netback – negative $2.19/boe (31 December 2022 – $181.57/boe)

o   Tunisia operating netback – $40.35/boe (31 December 2022 – $54.34/boe)

·       Capital expenditures of $5.5 million for the year ended 31 December 2023 (2022 – $12.9 million), comprising:

o   Romania – $0.5 million

o   Tunisia – $5.0 million

·       Third party reserves report attributes $45.79 million of Net Present Value at a 10% discount rate to the audited Proved and Probable Reserves of the Group as at 31 December 2023 (2022 – $85.4 million)

OPERATIONAL

·       In Tunisia, installation of artificial lift in the Sabria W-1 well will require a sidetrack. The sidetrack design has been completed and the tender process for the long lead items is progressing.

·       The Sabria N-2 well is dewatering at a slow rate and the Group is in discussions with its partner regarding stimulation techniques to enhance the dewatering of this well.

·       Production in Chouech Es Saida continues to increase with the benefits of artificial lift programme.

·       The Company conducted two liftings of Tunisian crude oil in 2023 (May and November) and expects three liftings in 2024 with the first lifting confirmed to occur in March 2024.

·       Static and dynamic reservoir models of the Sabria field are being finalised. The study will help inform optimum reservoir management including potential well workovers and new well locations.

·       The Moftinu Gas Field continues to produce at naturally declining rates.

·       In 2023, Canar-1 water injection well was continuously used to dispose of water produced from the Moftinu field. This resulted in a cost saving of approximately $600,000 for the year.

·       In October 2023, the Group received an exploration phase extension of the Satu Mare Concession in Romania. The Concession has been granted until 2034.

·       Production for the year averaged 642 boe/d, comprising:

o   Romania – 103 boe/d

o   Tunisia – 539 boe/d

·       The Company continued its excellent safety record with no Lost Time Incidents in 2023.

SERINUS AT A GLANCE

Serinus Energy plc (the “Company” or “Serinus”) is an oil and gas exploration, appraisal and development company which is incorporated under the Companies (Jersey) Law 1991.  The Company, through its subsidiaries (together the “Group”), acts as the operator for all of its assets and has operations in two business units: Romania and Tunisia.

ROMANIA

In Romania the Group currently holds the 2,950 km² Satu Mare Concession.  The Satu Mare Concession area includes the Moftinu Gas Project which was brought on production in April 2019 and has produced approximately 9.4 Bcf and $93.4 million of revenue to the end of 2023.  In addition to the Moftinu Gas Development Project the Satu Mare Concession holds several highly prospective exploration plays.  Serinus’ recently completed block wide geological review has highlighted the potential of multiple plays that have encountered oil and gas on the block.  Focus is on proven hydrocarbon systems, known productive trends that need further data, and studies of over 40 legacy wells on the concession area that have encountered oil and gas.  The concession is extensively covered by legacy 2D seismic, augmented by the Group’s own 3D and 2D acquisition programs that have further refined the identified prospects.  Putting this extensive evidence-based analysis together in a block wide review has allowed the Group to identify a pathway towards future exploration growth.

TUNISIA

The Group’s Tunisian operations are comprised of two concession areas.

The largest asset in the Tunisian portfolio is the Sabria field, which is a large oilfield with an independently estimated original in-place volume of 445 million barrels-of-oil-equivalent of which 1.6% has been produced to date.  Serinus considers this historically under-developed field to be an excellent asset for development work to significantly increase production in the near-term.  The Group has embarked on an artificial lift programme whereby the first pumps in the Sabria field will be installed.  Independent third-party studies suggest that the use of pumps in this field can have a material impact on production volumes. 

The Chouech Es Saida concession in southern Tunisia holds a producing oilfield that produces from four wells, three of which are produced using artificial lift.  Chouech Es Saida is a mature oilfield that benefits from active production management.  Underlying this oilfield are significant gas prospects.  These prospects lie in a structure that currently produces gas in an adjacent block.  Exploration of these lower gas zones became commercially possible with the recent construction of gas transportation infrastructure in the region.  Upon exploration success these prospects can be developed in the medium term, with the ability to access the near-by under-utilised gas transmission capacity.

OPERATIONAL SUMMARY AND OUTLOOK

CORPORATE

The Group is focused on developing its existing assets and enhancing production by active reservoir management.  A critical foundation to the advancement of these projects is the cash flow generation inherent in our production assets.  For the year to 31 December 2023, the Group generated cashflow from operating activities of $1.9 million and invested $5.5 million of capital expenditure.

The Group is currently focused on enhancing production from its Tunisian assets.  The large underdeveloped Sabria field offers significant opportunities in a well identified oilfield.  Investments in artificial lift and, in time, new wells offer near term production growth.  The Satu Mare Concession in Romania has excellent exploration potential that can offer the Company another Moftinu style shallow gas development.  Work continues and exploration targets have been identified.  The Moftinu gas field is a shallow gas field that has initial high production rates followed by natural declines.  Managing these declines to extract the most value from the gas in place has allowed the Group to extract $93.4 million of revenue from this field since production began in 2019. 

ROMANIA

The Group’s Romanian operating subsidiary, Serinus Energy Romania S.A. (“Serinus Romania”), holds the licence to the Satu Mare concession area, covering approximately 2,950 km² in the north-west of Romania.  The Moftinu Gas Development project began production in 2019.  The development project includes the Moftinu gas plant, and currently has four gas production wells – M-1003, M-1004, M-1007 and M-1008.  During 2023, the Group’s Romanian operations produced a total of 225 MMcf of gas, equating to an average daily production of 103 boe/day (2022: 379 boe/day).

The Moftinu gas field is nearing the end of its natural life.  The field has identified existing gas in uncompleted zones that can be completed and produced with higher gas prices and reduced windfall tax. The Group has recognised an impairment of $7.0 million.

In October 2023, the Group was granted an exploration phase extension to the Satu Mare Concession in Romania. The Moftinu gas field has been declared a Commercial Area, all other areas of the Concession remain Exploration Area.  The exploration period extension is in two phases. The first phase of the extension is mandatory and is two years in duration starting on 28 October 2023. The work commitment for the first phase is the reprocessing of 100 kilometres of legacy 2D seismic as well as a 2D seismic acquisition program of 100 kilometres including processing the acquired seismic data. The second phase of the extension is optional and is two years in duration starting on 28 October 2025 with a work commitment of drilling one well within the concession area with no total drilling depth requirement stipulated.

The Canar-1 water injection well is currently disposing of all produced water volumes from the Moftinu field. The use of Canar-1 as a water injection well is delivering significant cost savings in operating expenses due to the elimination of the high costs of trucking produced water volumes for disposal off-site.

The Group has identified additional gas volumes in uncompleted zones in M-1003 and M-1007.  During initial drilling and completion of these wells gas was encountered and logged.  The decision was made to complete and produce lower zones until such time as those zones were depleted.  Upon depletion of the lower zones the Group can return to these wells, complete the higher zones and produce the incremental gas.

Serinus has continued to operate safely and effectively in Romania throughout the period.  As at the year-end 2023, the Group had achieved 1,712 accident-free days of continuous operation which is a testament to the professionalism and hard work of our team in Romania.

In February 2023, the International Chamber of Commerce (“ICC”) has released the final merits award in respect of Serinus Romania arbitration case against its former partner in the Satu Mare Concession in Romania, Oilfield Exploration Business Solutions S.A. (“OEBS”), and has awarded in favour of Serinus.

The decision of the arbitral tribunal has confirmed that, as a result of OEBS’ default under the Joint Operating Agreement between the parties (“JOA”), OEBS’ 40% participating interest in the Satu Mare Concession in Romania will be transferred to Serinus as of the notification to the parties of the approval by the Romanian Government and the National Agency of Fiscal Administration (“ANAF”). The arbitral tribunal has also directed OEBS to take all necessary actions to formally transfer the 40% participating interest to Serinus.

Key elements of the decision are as follows:

·      OEBS is to be considered as withdrawn from the JOA and the Concession Agreement as of the notification to the parties of the approval of the competent authorities of such withdrawal.

·      The transfer of OEBS’ 40% participating interest to Serinus will be effective as of the notification to the parties of the approval by the Romanian Government and ANAF. This will result in OEBS having no more interest in the JOA and the Concession Agreement.

·      OEBS is ordered to undertake all actions necessary to transfer the 40% participating interest to Serinus.

·      Serinus is the true and lawful attorney of OEBS to execute such documents and make such filings and applications as may be necessary to make the transfer of OEBS’ 40% participating interest to Serinus legally effective and to obtain any necessary consents from the Romanian Government, the Romanian Agency for Mineral Resources (NAMR) and ANAF.

TUNISIA

The Group currently holds two concession areas within Tunisia, through its operating subsidiary in Tunisia, Serinus Tunisia B.V. (“Serinus Tunisia”).  These concession areas both contain discovered oil and gas reserves and are currently producing.  The largest asset is the Sabria field.  Sabria is a large, conventional oilfield which the Group’s independent reservoir engineers have estimated to have approximately 445 million barrels of oil equivalent originally in place.  Of this oil in place only 1.6% has been produced to date due to a low rate of development on the field.  Serinus has spent extensive time studying the best means of further developing this field and considers this to be an excellent asset for remedial work to increase production and, on completion of ongoing reservoir studies, to conduct further development operations including new wells.  Due to a low rate of development on the field, Serinus has spent extensive time studying the best means of further developing this field and considers this to be an excellent asset for remedial work to increase production and, on completion of ongoing reservoir studies, to conduct further development operations.

During 2023, the Group’s Tunisian operations produced a total of 167 Mbbl of oil and 177 MMcf of gas, equating to an average daily production of 539 boe/day (2022: 511 boe/day).

The workover to install a pump into the Sabria W-1 well encountered unexpected conditions as a result of old drilling mud and tubulars left in the well from operations in 1998. The Group and its partner, Enterprise Tunisienne D’Activite Petroliere (“ETAP”), suspended the workover and have determined that a sidetrack is required to complete the operation. The sidetrack design has been completed and the procurement process for the long lead items has commenced.

The Group and ETAP also conducted workover operations on the Sabria N-2 well. Workover operations were completed on time and within budget. The objectives of the workover were to remove wellbore restrictions, install new production tubing, and remediate reservoir damage around the wellbore. Wellbore restrictions were removed and new production tubing was installed. The well will need further stimulation to clean up the formation damage and discussions are continuing with the partner on this issue. The well was drilled in 1980 but was damaged during completion and, although in proximity to producing wells, in particular the prolific WIN-12bis well, was not able to flow oil to surface. The Group’s engineering analysis estimates that a successful workover and recompletion will initially increase gross production from the Sabria field by approximately 420 boe/d.

Production from the Chouech Es Saida area increased during 2023. This was the result of the Group’s active management of the artificial lift systems, optimising production rates.  In addition, the active life of the pumping units has been extended, this has increased the pump life from seven months in 2019 to 36 months in 2023.

The Group applied to extend the Ech Chouech licence which expired in June 2022.  The Group intends to continue its application to regain the licence once the licence process is formalised.  The Group remains the only feasible operator for the Ech Chouech concession due to the proximity of the existing Group’s facilities at Chouech Es Saida to the Ech Chouech oil field and legal privileges which the Group enjoys as a former title holder granting the Group pre-emptive rights for this concession.

COVID-19

The Group continues to place the health, safety and wellbeing of all our staff as our top priority.  The Group continues to follow government recommendations such as enhanced sanitation of work sites, social distancing and wearing masks.  Where government advice has required, the Group closed or reduced the presence of staff in our Head Office, Administration Office and our Business Unit Offices.  Our field operations continue to remain ready to modify daily tasks and routines to ensure safe practices for all staff, as required.  Existing operations have remained in production and our producing assets have seen no significant operational setbacks resulting from the COVID-19 pandemic.

SERINUS INVESTMENT THESIS

Investment in Serinus offers shareholders an ability to access international oil and gas upstream operations with strong cash flow generation through the oil and gas commodity cycle.  Our low-cost onshore asset base provides significant near-term production growth opportunities.  The size of the existing asset base allows for significant organic growth without incremental asset acquisition cost in areas where our technical knowledge has been refined over the years that Serinus has operated these concession areas.  Serinus offers a compelling growth opportunity where risks are mitigated by our extensive experience in our operating areas and the low-cost nature of our assets.   The Group’s existing assets also include large exploration prospects within close proximity of existing infrastructure.  The Group allocates capital to these exploration prospects which if successful can add meaningful production and cash flow to the Group.

Serinus’ operations in Romania are focused on the large Satu Mare Concession Area.  The Satu Mare Concession Area is located in the north west of Romania along-side the Hungarian border.  This large block contains the Moftinu gas field, and the Group believes that numerous shallow gas opportunities with similar characteristics to the Moftinu field are present in the immediate surrounding area.  In addition, the southern portion of the concession offers excellent exploration opportunities for large oil prospects as across the southern boundary of the Satu Mare concession is the Suplacu de Barcau oil field (held by OMV Petrom).  This is a significant oilfield estimated to have produced in excess of 100 million barrels.

In Tunisia, the Group’s operations are focused on the Sabria and Chouech Es Saida fields.  Sabria is a very large conventional oilfield where our independent reservoir engineers have accessed a field with 445 million barrels of oil equivalent originally in place.  Of that number approximately 1.6% has been recovered to date.  This is a very low recovery factor for a conventional oilfield and the Group expects to increase that recovery factor materially.  The Chouech field in southern Tunisia offers attractive opportunities to increase production from existing oilfields through the application of standard oilfield practices.  Serinus’ Tunisian assets can be typified as existing discovered and producing oilfields where field optimisation provides the path to production, revenue and cash flow growth with no exploration risk.  Underlying the Chouech field is the prospective Acacus gas zone.  Gas has been discovered and produced from this zone in nearby concessions and recent gas infrastructure developments make this exploration opportunity commercially attractive.

In addition to the strong asset base Serinus has a strong and experienced management team.  Within each jurisdiction, we have local professionals managing the operations.  Within the Group we have significant technical and commercial experience and are able to apply that experience across our business units.

SERINUS ENERGY’S STRATEGY

VISION

The Group’s goal is to transform the potential of its extensive land base in Romania and Tunisia into enhanced shareholder value through the efficient allocation of capital.

STRATEGY

Serinus is focused on significant growth potential within its existing concession and license holdings in Romania and Tunisia through the development of low cost, high return projects, as follows:

1.   Leverage Land Position:

·    One concession in Romania with multiple play types and prospects

·    Two exploration and production concessions in Tunisia with all work commitments completed

·    Extensive oil and natural gas exploration and development potential within multiple play horizons

2.   Commitment to Shareholders:

·    Cohesive management team with a commitment to enhancing shareholder value

·    Abide by the highest thresholds of disclosure for an AIM-listed Group

·    Extensive experience and a proven track record of the allocation of shareholder capital

3.   Manage Risks:

·    Managing surface and subsurface risks through constant evaluation and introduction of new technologies

·    Allocate capital to projects with attractive returns at relatively low risk profiles

·    Operator of all concessions allows for cost control

4.   Focus on Growth:

·    Leverage cash flow to grow through expanded exploration and development of the existing asset base

·    Seek acquisitions that will provide synergies at a cost that is accretive to shareholders

Serinus Energy plc (LON:SENX) has noted that it has been selected as a preferred bidder on the KON-13 block in the onshore Kwanza basin in the Republic of Angola. Formal notification of this preferred bidder status is expected to be received from the Agência Nacional De Petróleo, Gás E Biocombustíveis in the coming days. 

In November 2023, the Company submitted proposals to participate as operator on two blocks in the Kwanza basin onshore Angola.  The Kwanza basin is a large proven hydrocarbon basin extending over 25,000 km². The basin has existing oil discoveries dating back over seventy years. The Company was awarded preferred bidder status on one concession area, KON-13.   The KON-13 block has an aerial extent of 1,011 km² with one exploration well drilled in 1969 and 136 km of legacy 2D seismic.

The Kwanza basin is located both on and offshore in Angola. It extends from Luanda, located in the north, to Cape Santa Maria farther south.  The Company sees this basin as an under-explored and under exploited basin.  Activity in the basin was halted for the duration of the Angolan Civil War and the Company sees this basin as attractive for further exploration and development activities.

Serinus has been selected as the preferred operator of the KON-13 block with an allocated working interest of 55%. The selected non-operator partners for the Company are Effimax Energy (30% working interest), and Sonangol (Angola’s national oil company with 15% working interest). The Company and its partners will engage with ANPG to negotiate the licence terms on the Block. These negotiations are expected to be carried out over the next several months.

Serinus Energy will provide further details regarding the licence terms in due course.

Serinus Energy plc (LON:SENX) has announced that it has received a licence extension of the Satu Mare Concession in Romania.

The licence extension is in two phases. The first phase of the extension is mandatory and is two years in duration starting on 28 October 2023. The work commitment for the first phase is the reprocessing of 100 kilometres of legacy 2D seismic as well as a 2D seismic acquisition program of 100 kilometres including processing the acquired seismic data.

The second phase of the licence extension is optional and is two years in duration starting on 28 October 2025 with a work commitment of drilling one well within the concession area with no total drilling depth requirement stipulated.

Serinus Energy intends to conduct the 2D acquisition program over a number of the Company’s top prospects to further identify the hydrocarbon potential and to identify the best prospect to drill the work commitment well.

Serinus Energy plc (LON:SENX) has announced the appointment of Vlad Ryabov as Chief Financial Officer of the Serinus Group of Companies.

Mr. Ryabov is an experienced finance professional, having joined Serinus Energy Plc in March 2023 as Group Financial Controller. He started his career in public practice with Deloitte CIS in 2001 where he qualified as an accountant and in November 2007 moved to Deloitte UK in London. Mr. Ryabov’s experience spans a variety of sectors including a nine-year tenure in public practice with Deloitte, over twelve years in the natural resources sector for oil & gas exploration and production operations in emerging markets, and most recently he held a finance director role with a Saudi Arabian investment company.

Mr. Ryabov has a Master’s degree in Finance and Banking as well as Bachelor’s degree in Finance and Accounting from the Tashkent State University of Economics.

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced that the workover operations on the Sabria N-2 well in Tunisia have been completed. Having successfully removed wellbore restrictions and recompleted the well, the Company has mobilised surface testing equipment to the well site to evaluate well production. Upon completion of the testing program the Company will make a further announcement with the testing results.

The workover was completed on time and within budget despite 3.5 days non-productive time caused by high winds. The workover was performed with zero Lost Time Incidents. The Compagnie Tunisienne de Forage (“CTF”) crew performed well, and the CTF-004 rig experienced no material downtime.

Sabria is a large, conventional oilfield which the Company’s independent reservoir engineers have estimated to have approximately 445 million barrels of oil equivalent hydrocarbons originally-in-place, of which only 1.6 % has been produced to date.

Competent Persons Statement

In accordance with the AIM Rules for Companies, the technical information contained in this announcement has been reviewed and approved by Mr. Stuart Morrison, Chief Operating Officer of Serinus Energy plc.  Mr. Morrison is a qualified person as defined in the London Stock Exchange’s Guidance Note for Mining and Oil and Gas Companies and has the necessary professional and technical competencies to conduct petroleum operations.  Mr. Morrison has a Bachelor of Science (First Class Honours) Degree in Chemical Engineering and a Master of Engineering Degree in Petroleum Engineering, both from Heriot-Watt University, Edinburgh. Mr. Morrison has over 35 years of oil and gas industry operational experience in numerous senior management roles.

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced that the CTF-004 rig has completed rig-up and commenced workover operations on the Sabria N-2 well in Tunisia. This operation will recomplete the N-2 well and remove any wellbore restrictions.  This well was drilled in 1980 but was not able to flow oil to surface due to damage during completion. The N-2 is in close proximity to current Sabria producing wells, in particular the prolific WIN-12bis well. The workover and recompletion is expected to take approximately 30-40 days. Company engineering analysis estimates that a successful workover and recompletion will initially increase gross production from the Sabria field by approximately 420 boe/d.

Upon the recompletion of the N-2 well, the rig will be released.   

Sabria is a large, conventional oilfield which the Company’s independent reservoir engineers have estimated to have approximately 445 million barrels of oil equivalent hydrocarbons originally-in-place, of which only 1.6 % has been produced to date.

Competent Persons Statement

In accordance with the AIM Rules for Companies, the technical information contained in this announcement has been reviewed and approved by Mr. Stuart Morrison, Chief Operating Officer of Serinus Energy plc.  Mr. Morrison is a qualified person as defined in the London Stock Exchange’s Guidance Note for Mining and Oil and Gas Companies and has the necessary professional and technical competencies to conduct petroleum operations.  Mr. Morrison has a Bachelor of Science (First Class Honours) Degree in Chemical Engineering and a Master of Engineering Degree in Petroleum Engineering, both from Heriot-Watt University, Edinburgh. Mr. Morrison has over 35 years of oil and gas industry operational experience in numerous senior management roles.

About Serinus

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced today that a Notice of Meeting has been posted to shareholders and filed for the Company’s Annual General Meeting to be held on 11 May 2023 at Fairway Trust Limited, 2nd Floor, The Le Gallais Building, 54 Bath Street, St Helier, Jersey, JE1 1FW at 10:00am (BST). The Notice of Meeting and Proxy can be found on the Company’s website at https://serinusenergy.com/shareholder-information/

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has today announced its Annual Financial Results for 2022.

2022 HIGHLIGHTS

FINANCIAL

·       Revenue for the year ended 31 December 2022 was $49.3 million (31 December 2021 – $40.0 million)

·       EBITDA for the year ended 31 December 2022 was $12.7 million (31 December 2021 – $12.3 million)

·    The Company generated net income of $1.6 million, which includes a $1.9 million asset impairment (31 December 2021 – net income of $8.4 million)

·       The Company realised a net price of $149.46/boe for the year ended 31 December 2022, comprising:

o   Realised oil price – $94.39/bbl

o   Realised natural gas price – $34.53/Mcf

·       The Group’s operating netback remained strong for the year ended 31 December 2022 and was $107.59/boe (31 December 2021 – $44.60/boe), comprising:

o   Romania operating netback – $181.57/boe (31 December 2021 – $52.44/boe)

o   Tunisia operating netback – $54.34/boe (31 December 2021 – $29.77/boe)

·       Capital expenditures of $12.9 million (31 December 2021 – $10.7 million), comprising:

o   Romania – $8.4 million

o   Tunisia – $4.5 million

·     Third party reserves report attributes $85.4 million of Net Present Value at a 10% discount rate to the audited Proved and Probable Reserves of the Company as at 31 December 2022

·      Cash balance as at 31 December 2022 was $4.9 million

OPERATIONAL

·      Completed the Romanian near-term exploration programme in 2022. Drilled two exploration wells in Romania in 2022. Both the Moftinu Nord-1 well and the Canar-1 well encountered gas in targeted reservoirs however quantities did not justify commercial development

·     The Canar-1 well has been completed for use as a solar powered water injection well.  Water from Moftinu field is being disposed of at Canar-1 resulting in a cost saving of approximately $800,000 per year

·    The second compressor at the Moftinu field was commissioned in February 2022.  The compressors have stabilised production and will extend overall field life

·     The Company initiated a comprehensive block wide Geological Review engaging RISC Consultancy to take the Company’s existing database of 2D, 3D and well data and using that database construct a consistent geological model.  This model, containing all of the extensive legacy and modern data covers the entirety of the 3000 km² Satu Mare concession 

·      Knowledge from the Moftinu field development and recent exploration drilling has been incorporated into the comprehensive geological model to guide the Company in its further exploration of the highly prospective and multi-play Satu Mare concession

·     In Tunisia, the workover to install the first submersible pump for the Artificial Lift programme has commenced at the Sabria field.  Plans for additional pumps in the Sabria field are being progressed

·       Workovers in the Chouech Es Saida field continue the increased production from wells CS-3 and CS-1

·       Production for the year averaged 889 boe/d, comprising:

o   Romania – 379 boe/d

o   Tunisia – 510 boe/d

2022 Annual Report and Accounts

(US dollars)

SERINUS AT A GLANCE

Serinus is an oil and gas exploration, appraisal and development company.  The Group acts as the operator for all of its assets and has operations in two business units: Romania and Tunisia.

ROMANIA

In Romania the Company currently holds the 3,000km² Satu Mare Concession.  The Satu Mare Concession area includes the Moftinu Gas Project which was brought on production in April 2019 and has produced approximately 9.2 Bcf and $90.9 million of revenue to the end of 2022.  In addition to the Moftinu Gas Development Project the Satu Mare Concession holds several highly prospective exploration plays.  Serinus’ recently completed block wide geological review has highlighted the potential of several plays that have encountered oil and gas on the block.  Focus on proven hydrocarbon systems known productive trends that need further data and studies over 40 legacy wells on the concession area have encountered oil and gas.  The Company has identified numerous additional gas prospects identified by historic drilling and legacy 2D seismic.  The concession is extensively covered by legacy 2D seismic, augmented by the Company’s own 3D and 2D acquisition programs that have further refined the identified prospects.  Putting this extensive evidence based analysis together in a block wide review has allowed the Company to identify a pathway towards future exploration growth.

TUNISIA

The Company’s Tunisian operations are comprised of two concession areas.  The largest asset in the Tunisian portfolio is the Sabria field, which is a large oilfield play with an estimated original in-place volume of 445 million barrels-of-oil-equivalent of which 1.1% has been produced to date.  Serinus considers this historically under-developed field to be an excellent asset for development work to significantly increase production in the near-term.  The Company has embarked on an artificial lift programme whereby the first pumps in the Sabria field will be installed.  Independent third-party studies suggest that the use of pumps in this field can have a material impact on production volumes.  The Chouech Es Saida concession in southern Tunisia holds a producing oilfiled that produces from three wells.  Underlying this oil field are significant gas prospects.  These prospects lie in a structure that currently produces gas in an adjacent block.  Exploration of these lower gas zones became commercially possible with the recent construction of gas transportation infrastructure in the region.  Upon exploration success these prospects can be developed in the medium term, with the ability to access the near-by under-utilised gas transmission capacity.

OPERATIONAL SUMMARY AND OUTLOOK

CORPORATE

With the disruption of the COVID-19 pandemic and the associated global supply chain interruptions receding in 2022 the Company was able to advance its exploration and development projects.  A critical foundation to the advancement of these projects is the cash flow generation inherent in our production assets.  For the year to 31 December 2022, the Company generated cashflow from operating activities of $7.5 million and invested $10.7 million of capital expenditure.  The Company has a working capital surplus and in 2022 allocated the majority of the cash flow generated by the businesses to near-term exploration and production opportunities.

The Company continues to focus on the active management of the Moftinu Gas field production levels.  The Moftinu gas field is a shallow gas field that has initial high production rates followed by natural declines.  Managing these declines to extract the most value from the gas in place has allowed the Company to extract $90.9 million of revenue from this field since production began in 2019. 

The Company continues to advance the implementation of its artificial lift programme in the Sabria field in Tunisia, beginning with the Sabria-W1 well.  In 2022 the Company was frustrated in accelerating the installation of the first pump in the Sabria field by the default of the national rig company in Tunisia, Compagnie Tunisienne de Forage (“CTF”).  The initial rig contract committed CTF to provide their rig CTF-006 in mid-2022 but CTF was unable to provide the rig as per their contractual obligation.  An alternative rig (CTF-004) was mobilised to the site in December 2022.

The Company’s capital programme in 2022 was therefore concentrated on the two exploration wells, Canar-1 and Moftinu Nord-1, drilled in Romania and the acceleration of the design and permitting of a new 2D seismic programme.  The new 2D seismic was designed to complement the existing 2D seismic and tie to existing 3D seismic data to refine the high-rank prospects adjacent to the Moftinu gas field.

The Company, under the authority granted by the shareholders at the 2022 Annual General Meeting, executed the purchase of its own shares.  The Board believes that the share price at the time of its purchases did not reflect the intrinsic value of the business and will continue to evaluate the investment return of share buybacks as part of its allocation of capital across the Group (note 17).

ROMANIA

The Group’s Romanian operating subsidiary holds the licence to the Satu Mare concession area, covering approximately 3,000 km² in the north-west of Romania.  The Moftinu Gas Development project began production in 2019.  The development project includes the Moftinu gas plant, and currently has four gas production wells – Moftinu -1003, Moftinu-1004, Moftinu-1007 and Moftinu-1008.  During 2022, the Company’s Romanian operations produced a total of 826 MMcf of gas and 527 barrels of condensate, equating to an average daily production of 379 boe/day.

The Company has completed all of its commitments under the third exploration phase of the Satu Mare Concession Agreement, and in October 2021, received an additional two-year evaluation phase on the Satu Mare Concession until 27 October 2023.  The Company is in routine conversations with the National Agency for Mineral Resources (“NAMR”) regarding the further extension of this concession and will apply for a further appraisal period during 2023.  The greater Moftinu gas field area has been declared a commercial field and is exempt from this routine licence extension procedure.

During the year the Company drilled two exploration wells; Canar-1 and Moftinu Nord-1, adjacent to the Moftinu gas field.  These near field prospects were selected due to their proximity to the Moftinu Gas Plant.  It was expected that, upon success, these fields could be quickly tied into the existing processing infrastructure to deliver near-term cash flow.  Regrettably both wells discovered gas in the expected zones however neither field contained sufficient gas to justify commercial development.  The Canar-1 well was drilled on time and under budget and encountered gas in four prospective zones.  Post drilling analysis suggest that the seal of the reservoir was compromised and did not sufficiently prevent the gas from migrating away from the reservoir.  The Moftinu Nord-1 well was drilled on time and under budget but demonstrated a similar compromise of seal to the Canar-1 well.  Whilst it is disappointing to have discovered gas but to have that gas be in insufficient quantities, these two wells give greater insights into those risks that must be focused on while drilling exploration wells on various prospects.  Both Canar-1 and Moftinu Nord-1 demonstrated Type-3 AVO responses.  Typically, such a response is considered a Direct Hydrocarbon Indicator.  The two exploration wells demonstrated the effectiveness of the AVO responses and the use of AVO to identify gas accumulations.  The wells also highlighted the requirement to focus on seal types to allow for future success, especially for such shallow targets.  In the third quarter of 2022 the Company initiated a third party independent geological review of the Satu Mare Concession.  This review was designed to be a block wide review of the geological development of the many play types on the block.  The review was conducted by RISC, a geologic consulting firm, and was designed to combine the myriad of technical information into a block wide exploration model.  During the study Serinus technical personal worked with RISC to analyse the many historical wells and multitude of legacy 2D seismic.  This is the first time that a block wide review of all technical information has been prepared and the results are a valuable tool for future exploration opportunities.

Additional interpretation work is also being conducted on the Santau 3D area with a view to confirming drilling locations on prospects that will form the basis for future multi-well drilling campaigns.

After the drilling of Canar-1, the Company has implemented the technical program to convert this well into a water injection well.  This will allow the produced water volumes from the Moftinu wells to be injected in Canar-1.  The Company applied for and received all local and national permits, to get Canar-1 approved as a water injection well.  Produced water injection began in the fourth quarter of 2022.  The use of Canar-1 as a water injection well has resulted in a significant savings in operating expense.  Previous water disposal required extensive trucking of produced water volumes, injection using the Canar-1 well has resulted in cost savings in water transportation and water injection of 91%, approximately $800,000 per year.  At these injection levels, Canar-1 will recover the cost of drilling and conversion to water injection during 2023. 

The Company incorporated a new gas trading subsidiary, Serinus Energy Romania Trading S.r.l. in October 2021, which trades the Company’s Romanian gas production into the Romanian market.  Serinus Energy Romania Trading S.r.l was created to allow our licensed gas traders to directly access the Romanian gas market and to capture the full value of gas prices in Romania through the ability to access all available types of contracts of various durations and respond accordingly to the price signals of these contracts.  Gas pricing in Romania has moved significantly in 2022 from a low of $31/Mcf to a high of $67/Mcf.  Much of this price volatility has occurred counter to typical pricing seasonality.  The ability of the Company to utilise its own gas trading function has resulted in an average realised price of $39.96/Mcf for 2022, with an average realised gas price of $37.07/Mcf in the fourth quarter of 2022.  Whilst lower than the highs of 2022 current gas prices on the Romanian Commodity Exchange (“BRM”) remain strong over the first quarter of 2023.

Serinus has continued to operate safely and effectively in Romania throughout the period.  As at the year-end 2022, the Company had achieved 1,347 accident-free days of continuous operation which is a testament to the professionalism and hard work of our team in Romania.

The Company has a deemed 100% working interest in the concession as its partner has defaulted on its obligations under the Joint Operating Agreement.  The Company has filed a Request for Arbitration with the Secretariat of the International Court of Arbitration of the International Chamber of Commerce seeking a declaration affirming the Company’s rightful claim of ownership of its defaulted partner’s 40% participating interest and to compel transfer of that interest to the Company.  

After the year-end the Company announced the successful conclusion of its arbitration against its former partner.

TUNISIA

The Company currently holds two concession areas within Tunisia.  These concession areas both contain discovered oil and gas reserves and are currently producing.  The largest asset is the Sabria field.  Sabria is a large, conventional oilfield which the Company’s independent reservoir engineers have estimated to have approximately 445 million barrels of oil equivalent originally in place.  Of this oil in place only 1.1% has been produced to date due to a low rate of development on the field.  Serinus has spent extensive time studying the best means of further developing this field and considers this to be an excellent asset for remedial work to increase production and, on completion of ongoing reservoir studies, to conduct further development operations.

A major project for the operations in Tunisia in 2022 is the introduction of the first Artificial Lift programme to be implemented on the W-1 well in the Sabria field.  The W-1 is a currently suspended well that was identified as a candidate to benefit from the installation of a pump.  The Company agreed a rig contract with the Compagnie Tunisienne de Forage (“CTF”), the national drilling company.  The contract allowed for the provision of a drilling rig to conduct the W-1 workover.  The rig was originally scheduled to have been delivered to the W-1 site in May 2022.  The Company was made aware that for a variety of reasons CTF was unable to provide the rig that was named in the agreed rig contract, CTF-006.  Additionally, CTF informed the company that it did not have another rig available and suitable for the work that the Company anticipated.  Having defaulted on the contract, CTF worked with the Company to procure a replacement rig.  However, the replacement rig, CTF-004 was only able to be provided late in 2022.  This frustrating delay has meant that the W-1 work over and pump installation has not been completed in 2022.  Following the successful completion of the W-1 workover and pump installation the Company anticipates commencing a programme to install artificial lift in the remaining candidate wells in Sabria.

The delays faced by the CTF default have also affected the workover of the N-2 well in Sabria.  This well was drilled in 1980 but was damaged during completion and, although in proximity to producing wells, was not able to flow oil to surface due to damage during completion.  The workover program will re-complete the well and remove any wellbore restrictions.  The Company anticipates that the N-2 well will be on production in mid-2023.

During the year, the Company conducted further workover operations in the Chouech Es Saida area to replace and standardise pumps in order to increase production and efficiency.  Better pump design and installation has increased the pump life from seven months in 2019 to 24 months in 2022.  The Company has applied to extend the Ech Chouech licence but this expired in June 2022.  The Company intends to continue its application to regain the licence once the licence process is formalised.

COVID-19

The Company continues to place the health, safety and wellbeing of all our staff as our top priority.  The Company continues to follow government recommendations such as enhanced sanitation of work sites, social distancing and wearing masks.  Where government advice has required, the Company closed or reduced the presence of staff in our Head Office, Administration Office and our Business Unit Offices.  Our field operations continue to remain ready to modify daily tasks and routines to ensure safe practices for all staff, as required.  Existing operations have remained in production and our producing assets have seen no significant operational setbacks resulting from the COVID-19 pandemic.

SERINUS INVESTMENT THESIS

Investment in Serinus offers shareholders an ability to access international oil and gas upstream operations with strong cash flow generation through the oil and gas commodity cycle.  Our low-cost onshore asset base provides significant near-term production growth opportunities.  The size of the existing asset base allows for significant organic growth without incremental asset acquisition cost in areas where our technical knowledge has been refined over the years that Serinus has operated these concession areas.  Serinus offers a compelling growth opportunity where risks are mitigated by our extensive experience in our operating areas and the low-cost nature of our assets.   The Company’s existing assets also include large exploration prospects within close proximity of existing infrastructure.  The Company allocates capital to these exploration prospects which if successful can add meaningful production and cash flow to the Group.

Serinus’ operations in Romania are focused on the large Satu Mare Concession Area.  The Satu Mare Concession Area is located in the north west of Romania along-side the Hungarian border.  This large block contains the Moftinu gas field, and the Company believes that numerous shallow gas opportunities with similar characteristics to the Moftinu field are present in the immediate surrounding area.  In addition, the southern portion of the concession offers excellent exploration opportunities for large oil prospects as across the southern boundary of the Satu Mare concession is the Suplacu de Barcau oil field (held by OMV Petrom).  This is a significant oilfield estimated to have produced in excess of 100 million barrels.

In Tunisia, the Company’s operations are focused on the Sabria and Chouech Es Saida fields.  Sabria is a very large conventional oilfield where our independent reservoir engineers have accessed a field with 445 million barrels of oil equivalent originally in place.  Of that number approximately 1.1% has been recovered to date.  This is a very low recovery factor for a conventional oilfield and the Company expects to increase that recovery factor materially.  The Chouech field in southern Tunisia offers attractive opportunities to increase production from existing oilfields through the application of standard oilfield practices.  Serinus’ Tunisian assets can be typified as existing discovered and producing oilfields where field optimisation provides the path to production, revenue and cash flow growth with no exploration risk.  Underlying the Chouech field is the prospective Acacus gas zone.  Gas has been discovered and produced from this zone in nearby concessions and recent gas infrastructure developments make this exploration opportunity commercially attractive.

In addition to the strong asset base Serinus has a strong and experienced management team.  Within each jurisdiction, we have local professionals managing the operations.  Within the Company we have significant technical and commercial experience and are able to apply that experience across our business units.

SERINUS’ STRATEGY

VISION

The Group’s goal is to transform the potential of its extensive land base in Romania and Tunisia into enhanced shareholder value through the efficient allocation of capital.

STRATEGY

Serinus is focused on significant growth potential within its existing concession and license holdings in Romania and Tunisia through the development of low cost, high return projects, as follows:

1.   Leverage Land Position:

·    One concession in Romania with multiple play types and prospects

·    Two exploration and production concessions in Tunisia with all work commitments completed

·  Extensive oil and natural gas exploration and development potential within multiple play horizons

2.   Commitment to Shareholders:

·    Cohesive management team with a commitment to enhancing shareholder value

·    Abide by the highest thresholds of disclosure for an AIM-listed company

·    Extensive experience and a proven track record of the allocation of shareholder capital

3.   Manage Risks:

·   Managing surface and subsurface risks through constant evaluation and introduction of new technologies

·    Allocate capital to projects with attractive returns at relatively low risk profiles

·    Operator of all concessions allows for cost control

4.   Focus on Growth:

·  Leverage cash flow to grow through expanded exploration and development of the existing asset base

·    Seek acquisitions that will provide synergies at a cost that is accretive to shareholders

CHAIRMAN’S LETTER

Dear shareholders,

It is my pleasure to write this letter to you as Chairman of Serinus Energy plc.

2022 is another year that will be remembered by all of us, primarily due to tragic war developments also heavily impacting oil and gas sector.  Our Board, however, is eager to report that notwithstanding the constraints, the Company continues to generate strong cash flow and earnings.  As shareholders will recall 2021 was the first year since the Company’s inception that positive earnings were generated.  I am happy to report that the trend is being continued and that the Company generates positive earnings from operations in 2022.  Cost control remains essential to a cyclical commodities based business and I can assure you that in our case it does remain stable in the face of some very difficult inflation.

Inflation remains one of the challenges posed by the COVID-19 pandemic and our team has remained focused on executing our business plan and delivering value to our stakeholders.  Our production has declined in Romania in line with the parameters of a shallow gas field.  It is now important that we use our technical skills to find the next Moftinu Gas Development.  It must be remembered as we near the $100 million of revenue from the Moftinu gas field that these low-cost high return shallow gas fields offer dramatic earnings.  Consequently the strategy in Romania remains the same as we transition to finding the another Moftinu-like opportunity.  The Satu Mare Concession is a very large concession and we have so far identified more than thirty prospect opportunities with expected 181 million barrels of oil equivalent to be explored for.  Upon success any one of these prospects can offer the so rewarding returns we saw with Moftinu.  There are clearly major opportunities yet to be discovered there.

In Tunisia our strategy continues to focus on the improvement in recovery from the Sabria field.  Sabria is a large conventional oil field that has had little more than one percent of the in-place oil volumes recovered.  Social and political turmoil in Tunisia has made our work difficult but we remain confident in the technical capabilities of our teams and the large upside that is available in Sabria.  As we look beyond the artificial lift programme our teams are preparing the technical work for new wells.  As part of the longer-term strategy the Company would be eager to have the conditions allowing for new producing wells to be drilled in Sabria.

We have also made important investments in our operations, including drilling new wells and upgrading existing facilities.  As the nature of our business sometimes unfortunately dictates the exploration wells drilled in Romania were not commercially successful and I certainly share our shareholders frustrations when we come so close by discovering gas but fail at a later stage as there was simply not enough gas to ensure commercial sales. This was highly disappointing however I know that this is what exploration is like and I am comfortable that the low-risk, low-cost nature of our exploration programme will come to success in the near future.

Looking ahead, we are confident in the future of the energy sector, countries that we operate and the continued growth of our company. We remain focused on executing our strategy, delivering value to our shareholders, and contributing to the communities in which we operate.

Thank you for your continued support. I look forward to updating you on our progress in the coming year.

Yours sincerely,

Lukasz Rędziniak, Chairman of the Board of Directors

17 March 2023

LETTER FROM THE CEO

Dear Fellow Shareholders,

2022 was an operationally challenging year for Serinus as inflation continued to pressure the business.  Sweeping inflation in costs across the business required nimble solutions and a far greater degree of anticipation as we worked to achieve our operational targets.  The Company reacted by ordering long lead items for our drilling plans well in advance of what we would normally consider.  These actions allowed us to avoid the steep inflation in steel tubulars and other manufactured oilfield equipment.  Delays to fabrication eased in 2022 and we did not see some of the delays that were globally experienced in 2021.  We have pre-ordered the requisite pumps for the Tunisian artificial lift programme and those pumps are in hand in anticipation of our programme.  As we look forward, we see inflation beginning to moderate however our cost control focus will continue unabated.

Commodity prices once again took the headlines in 2022 as Russia invaded Ukraine and caused disruption to global energy markets.  Gas prices in Europe spiked and the Company’s Romania trading subsidiary was able to take advantage of these heightened gas prices.  Inevitably the higher commodity prices globally have allowed governments to review fiscal terms and, in many countries, increased windfall taxes were the result.  In Romania we have been exposed to windfall taxes since the inception of production in Moftinu and no fiscal changes have affected us.  Fiscal terms in Tunisia have remained stable and there has been no indications that these terms will change.

Operationally 2022 saw our business pursue our strategy in Romania of transitioning from a wholly production business to searching for the next leg of growth. The strategy included two near field exploration wells that were designed to add production to the existing gas plant infrastructure.  Frustratingly these two wells did not discover enough gas to assure commercial production and were therefore suspended.  The Canar-1 well has now been converted to a water injection well and has provided savings of approximately $60,000 per month in water disposal costs.  Whilst these two wells were not commercially successful they did provide the encouragement that the Satu Mare concession is highly gas prone and significant exploration opportunities remain to be explored by the Company.  The results of the Canar-1 and Moftinu Nord-1 wells showed that the seal on reservoirs is a risk that needs to be better understood. To that end the Company engaged independent geological and geophysical consultants to perform a block wide technical review to refine our understanding of which exploration opportunities to pursue next.  The block remains highly prospective, and the estimated size of the prospective resources offers a considerable economic prize for the business.

In Tunisia our strategy of increasing the recovery factor from our fields has continued.  Global delays to fabrication have meant that pump procurement has been delayed and in June we were informed by the Compagnie de Tunisienne de Forage (“CTF”), Tunisia’s state owned, monopoly, drilling company that the rig that we had contracted would not be made available to us.  Having defaulted on this contract the CTF then attempted to provide a replacement rig.  The rig suggested was not certified to the degree required by Serinus and was therefore delayed until mid-December.  Given the state owned, monopolistic nature of CTF the Company was deprived of normal contractual remedies and was forced to wait until a suitable rig became available.  This has meant the initial workovers associated with our pump programme were not completed within 2022 as anticipated.  Technically the merits of this programme remain valid and the Company is doggedly pursuing the completion of the workovers in SAB W-1 and N-2 as soon as possible.

As we move into 2023 we remain confident that the technical strategy of the business is sound.  Execution of the strategy has been slower than hoped but the considerable upside, both through exploration in Satu Mare and enhanced production in Tunisia remain excellent catalysts for growth in the business.

Yours sincerely,

Jeffery Auld, Chief Executive Officer

17 March 2023

Serinus Energy plc (LON:SENX) has announced today that pursuant to its obligations as an AIM listed company that the International Chamber of Commerce has released the final merits award in respect of Serinus Energy Romania S.A.’s arbitration case against its former partner in the Satu Mare Concession in Romania, Oilfield Exploration Business Solutions S.A., and has awarded in favour of Serinus.

The decision of the arbitral tribunal has confirmed that, as a result of OEBS’ default under the Joint Operating Agreement between the parties, OEBS’ 40% participating interest in the Satu Mare Concession in Romania will be transferred to Serinus as of the notification to the parties of the approval by the Romanian Government and the National Agency of Fiscal Administration (“ANAF”). The arbitral tribunal has also directed OEBS to take all necessary actions to formally transfer the 40% participating interest to Serinus.

Key elements of the decision are as follows:

·     OEBS is to be considered as withdrawn from the JOA and the Concession Agreement as of the notification to the parties of the approval of the competent authorities of such withdrawal.

·   The transfer of OEBS’ 40% participating interest to Serinus will be effective as of the notification to the parties of the approval by the Romanian Government and ANAF. This will result in OEBS having no more interest in the JOA and the Concession Agreement.

·      OEBS is ordered to undertake all actions necessary to transfer the 40% participating interest to Serinus.

·    Serinus is the true and lawful attorney of OEBS to execute such documents and make such filings and applications as may be necessary to make the transfer of OEBS’ 40% participating interest to Serinus legally effective and to obtain any necessary consents from the Romanian Government, the Romanian Agency for Mineral Resources (NAMR) and ANAF.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced that on 05 January 2023 it has purchased, in accordance with the authority granted by shareholders at the 2022 Annual General Meeting, a total of 100,000 of its ordinary shares of nil par value at an average price paid per share of 9.75 pence per share.

Following the purchase of these shares, the Company holds 3,264,986 of its ordinary shares in treasury and has 110,801,087 ordinary shares in issue (excluding treasury shares).

About Serinus

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced that the CTF-04 rig has completed rig-up and is preparing to commence operations. This operation will install the first submersible pump into the Sabria W-1 well as part of the Company’s Artificial Lift programme for the Sabria field. The completion of the planned operation is expected to take 60 days. Independent engineering analysis by SGS has determined that a successful workover and pump installation has an estimated initial mean increase in gross production of 796 boe/d.

Upon completion of the workover and pump installation at Sabria W-1, the rig will immediately move to the Sabria N-2 well to perform a workover to recomplete the well.  This well was drilled in 1980 but was damaged during completion and, although in proximity to producing wells, was not able to flow oil to surface due to damage during completion.  The workover program will re-complete the well and remove any wellbore restrictions. 

Sabria is a large, conventional oilfield which the Company’s independent reservoir engineers have estimated to have approximately 445 million barrels of oil-originally-in-place. Of this oil-in-place only 1.0% has been produced to date due to a low rate of development on the field. The installation of artificial lift in the Sabria wells and the recompletion of the N-2 well is expected to result in a material increase in Sabria oil and gas production.

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN), has announced today its interim results for the nine months ended 30th September 2022.

Financial

• Revenue for the nine months ended 30 September 2022 was $41.8 million (30 September 2021 – $25.7 million)

• During the period Moftinu Gas Plant surpassed produced revenues of $87.0 million since first gas in 2019

• Net income for the nine months ended 30 September 2022 was $3.4 million (30 September 2021 – $0.8 million)

• Funds from operations for the nine months ended 30 September 2022 were $11.1 million (30 September 2021 – $7.8 million)

• EBITDA for the nine months ended 30 September 2022 was $11.4 million (30 September 2021 – $8.9 million)

• Gross profit for the nine months ended 30 September 2022 was $11.8 million (30 September 2021 – $4.4 million)

• The Company realised a net price of $162.18/boe for the nine months ended 30 September 2022 comprising:

o  Realised oil price – $101.04/bbl

o  Realised natural gas price – $36.66/Mcf

• The Group’s operating netback remained strong for the nine months ended 30 September 2022 and was $120.13/boe (30 September 2021 – $34.13/boe), comprising:

o  Romania operating netback – $195.73/boe (30 September 2021 – $37.79/boe)

o  Tunisia operating netback – $59.11/boe (30 September 2021 – $26.05/boe)

• Capital expenditures of $8.6 million for the nine months ended 30 September 2022 (30 September 2021 – $9.3 million), comprising:

o  Romania – $6.9 million

o  Tunisia – $1.7 million

• Working capital surplus increased to $0.8 million (31 December 2021 – $0.6 million)

• Cash balance as at 30 September 2022 was $8.8 million (31 December 2021 – $8.4 million)

Operational

• The Canar-1 well was drilled to a total depth of 1,570 metres, targeting three prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well. The Canar-1 well has been completed as a water disposal well and test injection is ongoing

• The Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient estimated gas resources to justify proceeding with the testing and completion program for the well. The well is now suspended

• Drilling operations on both the wells (Canar-1 and Moftinu Nord-1) were performed within budget and without incident

• The Company has initiated a geological and geophysical review of the Satu Mare concession to high rank the management-estimated 181 million barrels of oil equivalent prospects

• In Tunisia, production has remained stable in the first three quarters of 2022.  All material and consumables for the artificial lift programme at the Sabria W-1 well have been received in-field and the Company is awaiting mobilisation of the rig. Having previously defaulted on the rig contract, La Compagnie Tunisienne de Forage (“CTF”), the Tunisia state-owned drilling company, has confirmed the availability of its CTF 004 rig to perform the workover and installation of artificial lift for the W-1 well in Sabria. The rig is currently being demobilised from another operator and is expected to be operational at the well site in December 2022. Workover and installation operations are expected to take 60 days to complete

• Workover at the CS-9 well at Chouech Es Saida was completed in August 2022

• Immediately following the completion of the W-1 workover and artificial lift installation, the CTF 004 rig will move to the Sabria N-2 well to perform a workover to recomplete the well

• The Company anticipates, subject to partner approval, proceeding with the workover and installation of artificial lift on the WIN-12bis well in Sabria in 2023

• Production for the period averaged 938 boe/d, comprising:

o  Romania – 421 boe/d

o  Tunisia – 517 boe/d

• In August 2022, Serinus Energy performed a lifting of 50,344 bbls of Tunisian crude oil at a price of $99.51/bbl

Serinus Energy plc (LON:SENX, WSE:SEN) has announced today that on the 26th October 2022 it purchased, in accordance with the authority granted by shareholders at the 2022 Annual General Meeting, a total of 95,000 of its ordinary shares of nil par value at an average price paid per share of 11.50 pence per share.

Following the purchase of these shares, the Company holds 2,964,986 of its ordinary shares in treasury and has 111,101,087 ordinary shares in issue (excluding treasury shares).

About Serinus

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Serinus Energy plc (LON:SENX, WSE:SEN) has announced that on 11 October 2022 it has purchased, in accordance with the authority granted by shareholders at the 2022 Annual General Meeting, a total of 50,000 of its ordinary shares of nil par value at an average price paid per share of 10.00 pence per share.

Following the purchase of these shares, the Company holds 2,864,986 of its ordinary shares in treasury and has 111,201,087 ordinary shares in issue (excluding treasury shares).

About Serinus

Serinus Energy is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.