Serinus Freezes Plans Despite Success in Romania

UK registered Serinus Energy produced 2,000 boe/d more in Q1 2020 than in the year-prior period, reaching an average 2,317 boe/d. About two thirds of the total was low-cost gas from its Moftinu field onshore Romania, where it produced none last year; and 571 boe/d were from Tunisia, it said May 15. Moftinu came on stream last April.

By the end of March, Serinus' production was 2,701 boe/d comprised of 2,064 boe/d in Romania and 637 boe/d in Tunisia. Over the quarter it generated $7.9mn, compared with $1.7mn in gross revenue last year; or $7.4mn net of royalties. This was comprised of $5.8mn in Romania and $2.1mn in Tunisia.

It said though that all capital investment plans have been postponed and it would spend as little as possible to maintain operations at a safe level.

Until the lockdown and the associated remote working, the company had seen some gains. The start-up of the Moftinu field in Romania was largely responsible for slashing the average production cost to $9.30/boe, from $22.47/boe in Q1 2019.

But restrictions caused by Covid-19 forced it to delay mobilisation of the contractor to execute the planned 3D seismic acquisition programme in the Berveni area of Romania.

Serica has entered co-operative discussions with the Romanian regulatory authorities regarding the disruptions caused by the restrictions imposed to address the Covid-19 crisis. Critical to these discussions are the remedies that the authorities can provide to allow operating companies in Romania the ability to fulfil their commitments, it said.

It has also begun talks with its lender, the European Bank for Reconstruction and Development over rescheduling, and it says that it was confident that a solution will be implemented ahead of the repayment in June.