Serinus' Romania well finds onshore gas
AIM-listed producer Serinus struck gas, as it hoped, with its first exploration well at Sancrai in northern Romania, it said August 12. Results showed gas over 20 metres of gross pay over four sand intervals from the measured depths of 855-875 m.
But despite the "high total gas readings during drilling," the company was unable to record the flow of gas and so the well will be suspended while Serinus carries out further technical studies into the Sancrai structure.
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It said the well was "a step towards unlocking an estimated 181mn barrels of oil equvalent (boe) mean unrisked or 73mn boe mean risked recoverable resources on the Satu Mare Concession Area. It is the final commitment of the third exploration phase on the Satu Mare Concession and has been drilled to 1,600 m.
It announced the discovery the same day as its six-month financial results. Pre-tax earnings were up 10% at $5.5mn while revenues were up more, from $13.3mn to $15.9mn. Funds from operations were $5.3mn, up from $4.3mn.
European gas prices, to which its gas sales are linked, are at record highs while oil is also stronger this year. Serinus benefited from Tunisian oil but invested less than in Romania ($700,000 compared with %5.2mn).
Its net realised price was $43.83/boe, comprising $58.06/barrel and $6.59/'000 ft³. Its netback was $26.72/boe, sharply up from $18.44/boe. In Romania it was up about a third at $28.73/boe while in Tunisia it was more than double, at $21.85/boe. Its Romanian production amounted to 1,442 boe/d while Tunisian production was 570 boe/d.
For a March 2021 interview with CEO Jeffrey Auld on the company's activities in Romania, please click here.