/EINPresswire.com/ -- CALGARY, ALBERTA--(Marketwired - Nov 9, 2016) - Serinus Energy Inc. ("Serinus", "SEN" or the "Company") (TSX:SEN)(WARSAW:SEN), is pleased to report its financial and operating results for the quarter ended September 30, 2016.

Note: with the sale of its 70% ownership interest in Ukraine in early February 2016, the financial results from those assets have been reclassified as discontinued operations starting with the three month period ending March 31, 2016. The comparative financial statements have been restated to show the discontinued operations separate from continuing operations. Unless otherwise noted, all figures contained in this press release are with respect to the continuing operations only. More information concerning the discontinued operations is contained in the Financial Statements and Management's Discussion and Analysis.

Third Quarter Highlights

• Production from the Company's continuing operations in the third quarter was 1,007 boe/d, 17% lower than the 1,206 boe/d in Q2 2016 and 25% lower than the 1,336 boe/d in Q3 2015. The decreases were due to pump failures on CS-1 and CS-3 wells in the Chouech Es Saida field, which resulted in a total of 78 days of downtime during the quarter. CS-3 and CS-1 resumed production in early September and early October respectively.
• Realized commodity prices for the third quarter were $43.01/bbl and $4.26/Mcf for oil and gas respectively, vs. $52.24/bbl and $7.61/Mcf in the same period last year, and $41.25/bbl and $4.35/Mcf in Q2 2016.
• Gross revenues (including changes in oil inventory) for the quarter were $3.6 million, down 42% vs. Q3 2015 and 11% from Q2 2016. These decreases were commensurate with changes in production levels and commodity prices between the respective periods.
• Netbacks were $12.54/boe in Q3, significantly lower than the $22.19/boe achieved in Q3 2015, due substantially to the effects of lower commodity prices. Measured against Q2 2016, the netback increased slightly from $11.71/boe, reflecting higher average oil prices quarter over quarter.
• Funds from Operations in the third quarter were a loss of $3.2 million, compared to a loss of $0.7 million in Q2 2016 and a gain of $0.01 million in Q3 2015. The major contributing factors were lower production as described above, commodity prices, and one-time payments aggregating to $2.2 million associated with the departure of senior executives during the quarter.
• The net loss for the quarter was $5.0 million as compared to losses of $32.1 million and $4.0 million in Q3 2015 and Q2 2016 respectively. The same factors described above contributed to these changes, and the loss in Q3 2015 was also influenced by an impairment charge of $44.3 million taken against the Tunisian assets
• Capital expenditures for the quarter were $1.1 million vs. $0.4 million for the same period in 2015.

Summary Financial Results (US$ 000's unless otherwise noted)
					Three Months Ending September 30
					2016				2015				Change
Oil and Gas Revenue 1,2						3,632				6,237			(42	%)
		Net Loss 1				(4,971	)			(32,089	)		(85	%)
per share, basic and diluted					$	(0.06	)		$	(0.41	)
	Comprehensive Net Income (Loss) 3					(4,971	)			(29,691	)		(83	%)
		per share, basic and diluted			$	(0.06	)		$	(0.38	)
Funds from Operations 1,4						(3,186	)			79			(4133	%)
		per share, basic and diluted			$	(0.04	)		$	0.00
Capital Expenditures 1						1,066				416			156	%
Average Production 1
		Oil	(Bbl/d)			787				1,035			(24	%)
		Gas	(Mcf/d)			1,324				1,806			(27	%)
		BOE	(boe/d)			1,007				1,336			(25	%)
Average Sales Price
		Oil	($/Bbl)			43.01			$	52.24			(18	%)
		Gas	($Mcf)		$	4.26			$	7.61			(44	%)
		BOE	($/boe)		$	39.19			$	50.75
						September 30
						2016				2015
Cash & Equivalents						2,639				10,467
Working Capital						(36,280	)			(50,047	)
Long Term Debt						-				-
Shares
		Outstanding, period end				78,629,941				78,629,941
		Average for period (basic)				78,629,941				78,629,941
		Average for period (FD)				78,629,941				78,629,941

1. From or for continuing operations only
2. Includes changes in oil inventory
3. Includes earnings and foreign currency translation from discontinued operations for Q3 2015 of $2.4 million (2016: nil)
4. Funds from Operations is not a recognized measure under IFRS. See Management's Discussion and Analysis for further information on non-IFRS measures.
   
   

Outlook

Average daily production (SEN WI) for the fourth quarter to date has been approximately 1,226 boe/d (919 bbl/d of oil, 1.84 MMcf/d of gas) with the restoration of production from CS-1 and CS-3.

The Company's focus remains on reducing costs wherever possible while maintaining existing production in Tunisia. Budgets will be re-examined on an ongoing basis in the event of that management becomes confident that such prices can be sustained, and that funding is available to recommence drilling.

As previously announced, on October 31, 2016 the National Agency for Mineral Resources ("NAMR") in Romania granted approval of the Phase 3 Extension Addendum (the "Addendum") for the Satu Mare Licence. The Company will now concentrate on moving the Moftinu gas discovery into experimental production. Serinus has been conducting certain engineering studies and preliminary design work with respect to the requisite surface facilities and development wells, but was limited from substantial further progress until the approval of the Addendum.

Serinus, through its wholly owned subsidiary Winstar Satu Mare S.A., owns a 60% interest in Satu Mare. The owner of the remaining 40% (the "Partner") has indicated that it does not wish to participate in future development. However, the Partner is currently in a legal dispute with the Romanian government, and its ability to transfer that interest to Serinus is uncertain. The Company is in discussions with the Partner and various government agencies including NAMR and the financial authorities to ensure that it acquires 40% interest.

The Company is examining several alternatives for funding the development activities in both Romania and Tunisia.

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

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 Equivalent		Mcfe/d		Thousand Cubic Feet Equivalent per day
MMcfe		Million Cubic Feet Equivalent		MMcfe/d		Million Cubic Feet Equivalent per day
Mboe		Thousand boe		Bcf		Billion Cubic Feet
MMboe		Million boe		Mcm		Thousand Cubic Metres
CAD		Canadian Dollar		USD		U.S. Dollar
$MM		Millions of Dollars		$M		Thousands of Dollars

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. 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.