/EINPresswire.com/ -- CALGARY, ALBERTA -- (Marketwired) -- 03/16/16 -- Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX: SEN)(WARSAW: SEN), is pleased to report its financial and operating results for the year ended December 31, 2015.

2015 Highlights

--  On December 23, 2015, the Company announced that it had reached an
    agreement to sell all of its interests in Ukraine to Resano Trading
    Ltd., an affiliate of the Burisma Group. That transaction closed in
    early February, 2016 and Serinus received total cash consideration of
    $32.9 million (including the originally disclosed $32.8 million plus a
    gain on the subsequent foreign exchange translation) including all
    working capital and inter-company adjustments, subject to a final
    statement of adjustment. The Company repaid a total of $19.2 million of
    debt and accrued interest to the European Bank for Reconstruction and
    Development ("EBRD") out of the proceeds from the sale, reducing its
    bank debt to $33.8 million. The balance of the proceeds will be used for
    general corporate purposes and to further the development of the Moftinu
    gas discovery in Romania.
--  In Romania, Serinus confirmed a significant gas discovery in the
    Moftinu-1001 well in April when the well tested at a maximum rate of 7.4
    MMcf/d and 19 bbl/d of condensate. That discovery has been assigned
    unrisked contingent resources of 12.6 Bcf (10.7 Bcf risked, based on an
    85% chance of development) by the Company's independent reserve
    evaluator. Pending regulatory approvals by the Romanian government and
    ability to finance, first production is anticipated in early 2017 and
    will require $14 million of capital expenditures.
--  In 2015, Serinus achieved average production (SEN WI) of 4,105 boe/d,
    compared to 5,219 boe/d in 2014. The main drivers behind the reduction
    vs. 2014 include a two month shut-in of the Sabria Field in Tunisia due
    to political protests, government interference in the gas market in
    Ukraine during the first half of 2015, and natural declines manifesting
    themselves due to curtailed drilling. The 2015 capital program was
    severely restricted due to lower world commodity prices and
    uneconomically high royalty rates in Ukraine. Total working interest
    production exited the year at 4,085 boe/d, a 25% decline vs YE 2014.
--  Netbacks in 2015 were also significantly impacted by the drop in
    commodity prices. In Tunisia, the average netback was $20.86/boe vs.
    $53.18/boe in 2014. Ukrainian netbacks, which were also negatively
    affected by the fall in the Ukraine hryvnia vs. the U.S. dollar and the
    full year effects of royalty increases first imposed in August 2014,
    fell from $31.05/boe in 2014 to $13.03/boe in 2015.


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Notes: Serinus prepares its financial results on a consolidated basis, which
includes 100% of its indirectly 70% owned subsidiary, KUB-Gas LLC ("KUB-
Gas"). Unless otherwise noted by the phrases "allocable to Serinus", "net to
Serinus", "attributable to SEN shareholders" or "SEN WI", all values and
volumes refer to the consolidated figures. Serinus reports in US dollars;
all dollar values referred to herein, whether in dollars or per share values
are in US dollars unless otherwise noted.

--  Funds from Operations for 2015 fell to $16.8 million ($0.21/share)
    compared to $65.3 million ($0.83/share) in 2014. The portion allocable
    to SEN shareholders was $12.1 million ($0.15/share) compared to $49.4
    million ($0.63/share) in 2014. The principle drivers were the lower
    production and netbacks described above.
--  Serinus recorded net losses of $14.7 million ($0.19/share) and $47.8
    million ($0.61/share) in Q4 and FY2015 respectively. The comparable
    values for 2014 were losses of $42.0 million ($0.53sh) and $24.0 million
    ($0.30/sh). Income was impacted by $51.4 million of impairment charges
    taken against its Tunisian assets with smaller charges taken against the
    Ukraine assets.

Summary Financial Results (US$ 000's unless otherwise noted)

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                                          Three Months Ending December 31
                                        ------------------------------------

                                              2015     2014(i)      Change
                                        ----------- ----------- ------------
Oil and Gas Revenue                          4,794      10,034         (52%)

Net Income from Discontinued
 Operations                                   (385)     (2,277)        (83%)

Net Income (as reported)                   (14,720)    (41,979)        (65%)
  per share, basic and
   diluted                                  ($0.19)     ($0.53)

Net Income (allocable to
 Serinus)                                  (14,604)    (41,295)        (65%)
  per share, basic and
   diluted                                  ($0.19)     ($0.53)

Comprehensive Net Income                   (18,657)    (48,714)        (62%)
  per share, basic and
   diluted                                  ($0.24)     ($0.62)

Funds from Operations (as
 reported)                                   2,127      10,424         (80%)
  per share, basic and
   diluted                                   $0.03       $0.13

Funds from Operations
 (allocable to SEN)                           $831      $8,040         (90%)
  per share, basic and
   diluted                                   $0.01        0.10

Capital Expenditures                         1,910      26,587         (93%)

Average Production (net to Serinus, including discontinued
 operations)
  Oil                        (Bbl/d)         1,001       1,115         (10%)
  Gas                        (Mcf/d)        17,414      25,289         (31%)
  Liquids                    (Bbl/d)            56          83         (33%)
                                        ----------- ----------- ------------
  BOE                        (boe/d)         3,959       5,413         (27%)

Average Sales Price
  Oil                        ($/Bbl)        $41.85      $73.61
  Gas                        ($Mcf)          $7.12       $9.88
  Liquids                    ($Bbl)         $44.84      $72.34
  BOE                        ($/boe)        $42.58      $61.72

                                              December 31
                                        -----------------------
                                              2015     2014(i)
                                        ----------- -----------
Cash & Equivalents                           6,594      11,096
Working Capital                            (11,243)    (12,973)
Long Term Debt                                   -      32,204

Shares Outstanding                      78,629,941  78,629,941
  Average for period                    78,629,941  78,629,941
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(i) With the agreement to sell the Ukraine assets, the Ukraine segment is
 presented as discontinued operations and a disposal group held for sale as
 at and for the year ended December 31, 2015. The 2014 financial results
 have been restated to be shown on a comparable basis.


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                                              Year Ending December 31
                                        ------------------------------------

                                              2015     2014(i)      Change
                                        ----------- ----------- ------------
Oil and Gas Revenue                         25,975      45,002         (42%)

Net Income from Discontinued
 Operations                                  4,352      21,802         (80%)

Net Income (as reported)                   (47,798)    (23,961)         99%
  per share, basic and
   diluted                                  ($0.61)     ($0.30)

Net Income (allocable to
 Serinus)                                  (49,104)    (30,501)         61%
  per share, basic and
   diluted                                  ($0.62)     ($0.39)

Comprehensive Net Income                   (59,855)    (58,069)          3%
  per share, basic and
   diluted                                  ($0.76)     ($0.74)

Funds from Operations (as
 reported)                                  16,829      65,311         (74%)
  per share, basic and
   diluted                                   $0.21       $0.83

Funds from Operations
 (allocable to SEN)                        $12,061     $49,444         (76%)
  per share, basic and
   diluted                                   $0.15       $0.63

Capital Expenditures                        18,785      68,450         (73%)

Average Production (net to Serinus,
 including discontinued operations)
  Oil                        (Bbl/d)         1,055         999           6%
  Gas                        (Mcf/d)        17,937      24,768         (28%)
  Liquids                    (Bbl/d)            60          92         (35%)
                                        ----------- ----------- ------------
  BOE                        (boe/d)         4,105       5,219         (21%)

Average Sales Price
  Oil                        ($/Bbl)        $52.75      $96.18
  Gas                        ($Mcf)          $7.30       $9.95
  Liquids                    ($Bbl)         $42.78      $78.19
  BOE                        ($/boe)        $45.59      $65.32

                                              December 31
                                        -----------------------
                                              2015     2014(i)
                                        ----------- -----------
Cash & Equivalents                           6,594      11,096
Working Capital                            (11,243)    (12,973)
Long Term Debt                                   -      32,204

Shares Outstanding                      78,629,941  78,629,941
  Average for period                    78,629,941  78,627,711
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(i) With the agreement to sell the Ukraine assets, the Ukraine segment is
 presented as discontinued operations and a disposal group held for sale
 as at and for the year ended December 31, 2015. The 2014 financial
 results have been restated to be shown on a comparable basis.

General & Financial Highlights

--  Revenues in Tunisia fell from $45.0 million in 2014 to $26.0 million in
    2015, substantially all attributable to the fall in commodity prices.
--  Revenues in Ukraine in 2015 were $62.0 million vs. $119.3 million in the
    prior year. The key contributors to this decline were the 29% fall in
    production (See Operational Highlights below), average natural gas and
    condensate prices falling by 26% and 45% respectively year over year,
    and the Ukraine hryvnia declined by 32% vs. the U.S. dollar during 2015,
    reducing the revenues in USD terms.
--  Total royalties paid decreased from $48.6 million in 2014 to $37.7
    million.in 2015. Much of this drop was due to lower commodity prices,
    but was partially offset by the full year effects of the royalty rate
    increases in Ukraine first imposed in August 2014. Overall royalties in
    Ukraine were $34.7 million (vs. $42.7 million in 2014), but the average
    effective rate increased from 35.8% to 56.0%.
--  Serinus made capital expenditures of $18.8 million in 2015, of which
    $5.6 million, $8.4 million, and $4.8 million were spent in Ukraine,
    Tunisia and Romania respectively. This is slightly above the Company's
    previous guidance of $17 million for the year due to workovers on the
    WIN-12bis and CS-7bis wells during the fourth quarter for tubing clean
    out and pump replacement respectively, and other repair and maintenance
    items.
--  Due to the continued decline in oil prices, Serinus took a further
    impairment charge of $8.8 million at December 31, 2015 against its
    Tunisian assets for a total of $51.4 million for the year. This does not
    affect the present value of the properties, and the Company looks
    forward to investment and growth in Tunisia when commodity prices
    recover. The reclassification of the Ukraine assets to "held for sale"
    required an impairment charge of $3.3 million.
--  On February 20, 2015, the Company announced that it had executed an
    agreement for a new loan facility with the EBRD for $11.28 million
    (EUR10 million). This facility was used to fund the capital program then
    underway in Romania which included two exploration wells and a 3D
    seismic survey, and resulted in the gas discoveries in the Moftinu-1001
    and 1002bis wells previously announced on April 2 and 20, 2015
    respectively. With the sale of the Ukraine assets in February 2016, this
    facility and all accrued interest was repaid in full.
--  At December 31, 2015, the Company was not in compliance with the
    financial debt to EBITDA ratio financial covenant at the Tunisia level
    on its debt held with the EBRD. The EBRD subsequently waived compliance
    with this ratio for the year ended December 31, 2015. Debt repayments
    will follow their original scheduled repayment terms and the bank will
    not be acting on its security. However, given the covenant was breached
    as at December 31, 2015, Serinus has reclassified its long-term debt to
    current in the financial statements, as required under accounting
    standards.

Operational Highlights

--  Production in Tunisia averaged 1,348 boe/d (78% oil), up slightly from
    1,315 boe/d in 2014. Increases came from the Winstar-13 ("WIN-13") well
    and a full year of production from Winstar-12bis ("WIN-12bis"), both in
    the Sabria area of Tunisia. These gains were largely offset by the shut-
    in of the Sabria Field from late February to late July due to local
    protests. These protests were against the lack of development,
    investment and job creation in the area, and not directed at the
    Company, and affected several other nearby fields run by other
    companies. Gas sales were also restricted in Chouech Es Saida in June
    due to operational issues with STEG (the national gas utility and
    transmission system) related to high ambient temperatures.
--  WIN-12bis commenced production on December 10, 2014 at an initial rate
    of 635 boe/d (286 boe/d SEN WI). After the well cleaned up and
    stabilized, it reached daily rates of over 1,000 boe/d (450 boe/d SEN
    WI). Later in the year, the well experienced some downtime due to scale
    formation in the tubing, requiring a workover to clean out and restore
    production. The cause of the scale has been identified, and control
    measures are being designed and implemented. Even with this downtime and
    the shut-in due to the above mentioned protests at Sabria, WIN-12bis
    averaged 744 boe/d (335 boe/d SEN WI) for calendar 2015.
--  WIN-13 reached its target total depth of 3,781 metres on March 11, 2015.
    After completion it was put on production in April 2015. It averaged 240
    boe/d (108 boe/d SEN WI) during the last quarter of 2015.
--  Production in Ukraine averaged 2,757 boe/d or 16.5 MMcfe/d (both SEN WI)
    during 2015, 29% lower than 2014. Government policies first enacted in
    November 2014 which reserved a large portion of the industrial gas
    market for the state owned energy company restricted production and
    sales. Those laws were overturned at the end of March, but the market
    was slow to re-adjust and the effects were felt for several more months.
    Later in the year, production was affected by the onset of normal
    declines as drilling was curtailed due to lower commodity prices and the
    high royalties imposed in August 2014.
--  In Romania, the two exploration wells, Moftinu-1001 and Moftinu-1002bis,
    that were drilled in late 2014 were completed and tested during March
    and April 2015. Three zones with aggregate net pay of 17 metres were
    tested in Moftinu-1001 and that discovery has been assigned unrisked
    contingent resources of 12.6 Bcf (10.7 Bcf risked, based on an 85%
    chance of development) by the Company's independent reserve evaluator.
    In Moftinu-1002bis, four lower Miocene aged sands were tested, and
    movable gas was encountered. The sands were both tight and damaged
    during drilling, and commerciality will depend upon identifying suitable
    drilling and completion techniques in future wells.

Outlook

Average working interest production in 2016 in Tunisia to the end of February was approximately 1,140 boe/d (926 bbl/d of oil, 1.3 MMcf/d of gas). Average daily production in Ukraine until the closing of the sale to Resano was 15.6 MMcf/d and 67 bbl/d (both values SEN 70% WI).

In light of the current low commodity price environment, the Company's focus will be on reducing costs wherever possible while maintaining existing production in Tunisia. The 2016 budget will be re-examined on an ongoing basis in the event of a significant movement in Brent crude oil prices.

In Romania, Serinus will concentrate on developing the Moftinu-1001 discovery. Management is currently refining the development drilling program and has commenced preliminary design of the required surface facilities. Pending gazetting of the Phase 3 extension of the Satu Mare Licence and the various permits and approvals required, drilling and construction could commence in mid-2016. The Company is considering taking on a joint venture partner to assist in financing the Moftinu project.

Board Change

At its meeting on March 16, 2016, the Board of Directors of Serinus (the "Board") accepted the resignation of Mr. Vanja Baros with immediate effect, and also with immediate effect, nominated Mr. Lukasz Redziniak as a non-executive director. Mr. Redziniak is an attorney-at-law with more than 20 years of experience in private and public service. He is also General Counsel and a board member of Kulczyk Investments S.A., the Company's largest shareholder.

The Company and the Board thank Mr. Baros for his service over the past year.

Supporting Documents

The full Management Discussion and Analysis ("MD&A") and Financial Statements have been filed in English on www.sedar.com and in Polish and English via the ESPI system, and will also be available on www.serinusenergy.com.

Abbreviations

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bbl      Barrel(s)                    bbl/d     Barrels per day
----------------------------------------------------------------------------
boe      Barrels of Oil Equivalent    boe/d     Barrels of Oil Equivalent
                                                per day
----------------------------------------------------------------------------
Mcf      Thousand Cubic Feet          Mcf/d     Thousand Cubic Feet per day
----------------------------------------------------------------------------
MMcf     Million Cubic Feet           MMcf/d    Million Cubic Feet per day
----------------------------------------------------------------------------
Mcfe     Thousand Cubic Feet          Mcfe/d    Thousand Cubic Feet
         Equivalent                             Equivalent per day
----------------------------------------------------------------------------
MMcfe    Million Cubic Feet           MMcfe/d   Million Cubic Feet
         Equivalent                             Equivalent per day
----------------------------------------------------------------------------
Mboe     Thousand boe                 Bcf       Billion Cubic Feet
----------------------------------------------------------------------------
MMboe    Million boe                  Mcm       Thousand Cubic Metres
----------------------------------------------------------------------------
UAH      Ukrainian Hryvnia            USD       U.S. Dollar
----------------------------------------------------------------------------
CAD      Canadian Dollar
----------------------------------------------------------------------------

Cautionary Statement:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Test results are not necessarily indicative of long-term performance or of ultimate recovery. The test data contained herein is considered preliminary until full pressure transient analysis is complete.

About Serinus

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

For further information, please refer to the Serinus website (www.serinusenergy.com).

Translation: This news release has been translated into Polish from the English original.

Forward-looking Statements: This release may contain forward-looking statements made as of the date of this announcement with respect to future activities that either are not or may not be historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, any potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors that could impair or prevent the Company from completing the expected activities on its projects include that the Company's projects experience technical and mechanical problems, there are changes in product prices, failure to obtain regulatory approvals, the state of the national or international monetary, oil and gas, financial, political and economic markets in the jurisdictions where the Company operates and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties and actual results may vary materially from those expressed in the forward-looking statement. The Company undertakes no obligation to revise or update any forward-looking statements in this announcement to reflect events or circumstances after the date of this announcement, unless required by law.

Contacts:
Serinus Energy Inc. - Canada
Norman W. Holton
Vice Chairman
Tel.: +1-403-264-8877
nholton@serinusenergy.com

Serinus Energy Inc. - Canada
Gregory M. Chornoboy
Director - Capital Markets & Corporate Development
Tel: +1-403-264-8877
gchornoboy@serinusenergy.com

Serinus Energy Inc. - Poland
Jakub J. Korczak
Vice President Investor Relations & Managing Director CEE
Tel.: +48 22 414 21 00
jkorczak@serinusenergy.com