Serinus Energy issues update on its operations in Ukraine
Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN, WSE:SEN), announces an update on its operations in Ukraine.
Due to a deteriorating security situation, the Company has decided to put developmental field operations on hold. Production will continue, but current drilling, workover and development activities will be wound down as they are either completed, or reach thresholds at which operations can be suspended safely with no risk to the assets and people involved, including:
M-17 has been tied in to the new Makeevskoye Gas Plant, and is currently producing at a rate of 4.27 MMcf/d. That rate is expected to stabilize during the course of the next week. Production in Ukraine is currently approximately 34.2 MMcf/d. All further tie-ins’ will be deferred until such time as it is deemed safe to resume active field operations.
The S6 zone in the O-11 well has been perforated and testing commenced. Upon perforation the well had a strong air blow then flowed gas to surface. The well was shut in for a pressure build up and the pressure had not stabilized at the time of this release. No additional tests will be undertaken at this time;
Surface casing has been set in the NM-4 well at a depth of 100.2 meters, and the rig has moved off.
While the Company continues to produce, sell and be paid for the gas sold, it is no longer prudent to continue these active operations in a situation where the security changes daily. In particular, the area immediately in and around Lugansk where the Vergunskoye and Krutogorovskoye fields (producing 0.4 MMcf/d and 0.6 MMcf/d respectively) are located is no longer controlled by the government and as a result production at the Vergunskoye field has been shut in.
Tim Elliott said: “The situation in Ukraine changes daily. Notwithstanding the ceasefire declarations, the security situation on the ground remains uncertain. Consequently, a decision has been made to stop active field operations. We have been operating in the field up until this point with the support and at the behest of the KUB-Gas employees who have shown tremendous bravery and determination to continue working in the face such difficult conditions. However, the Company has decided that it is prudent to be cautious and elected to cease operations until such time as conditions in the immediate area stabilize.”