EBRD Supports Serinus’ Efforts in Romania

Calgary-based Serinus Energy reached a €10 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to move on with its plans in the Satu Mare licence in Romania. The block in the northwest of the country, is owned and operated by Serinus Energy’s subsidiary Winstar Satu Mare, but it experienced problems repatriating its cash in Ukraine. 

‘The capital program includes the drilling, completion and testing of the Moftinu-1001 and 1002bis wells, and the Santau 3D seismic survey conducted in the last quarter of 2014, and will fulfil the Phase 2 work requirements associated with the Satu Mare licence’ reads the note released on Monday. 

Serinus will fund all these expenditure. It will repay in 10 semi-annual instalments beginning in 12 months.

“Prior to the changes in the Ukraine fiscal regime since the last half of 2014, and in particular the restrictions on foreign currency remittances from Ukraine, Serinus had been fully capable of funding the Romanian program through cash flow. Those changes, along with the recent drop in commodity prices significantly impaired that ability and the Romanian Facility helps the Company to meet its cash requirements” Tim Elliott, President and Chief Executive Officer of Serinus commented.

The news came a few days after Chevron’s decision to pull out of its Romanian shale concessions. 

Meanwhile, things are not getting any better for Polish gas industry. 

On Friday, San Leon Energy announced that its second well in the 3-well programme, Gierałtowice on the Bielsko-Biała concession in Karpaty (Poland), is not commercially viable. It also decided that, in the near-term, it will not to drill the Niwiska well, on Block 243 in the Permian Basin.