Serinus Announces Spud of NM-4 in Eastern Ukraine

Despite the political tensions in the area around Lugansk, the North Makeevskoye-4 (“NM-4”) exploration well commenced drilling on Monday, according to Canada-headquartered Serinus Energy.

“The spud of NM-4 is yet another indication that KUB-Gas continues to produce, operate, and receive payment for its natural gas with no substantial interruption. We thank all of the employees at KUB-Gas for their continued dedication, efforts and courage,” Tim Elliott, Chief Executive Officer of Serinus, commented in a note released on Wednesday. 

Serinus has a 70% effective interest in KUB-Gas, which operates the licence.

‘The NM-4 prospect was estimated to have 1 Bcf of prospective resources (best estimate) by the company's independent third party evaluator as at December 31, 2013. The planned total depth is 2,000 metres and the well is expected to take 41 days to drill,’ explains the company.

North Makeevskoye is the largest of the five licences in which Serinus participates through its indirect holding in KUB-Gas. KUB-Gas plans to carry out stimulation later this year with the intention of achieving commercial flow rate.

‘If NM-4 is successful, it will strengthen the chances of success on two more fault blocks within the same channel system, and could open up a new exploration fairway within the Olgovskoye, Makeevskoye and North Makeevskoye licences.’

The main shareholder of the company is Kulczyk Investments S.A., founded by Jan Kulczyk, the richest man in Poland according to Forbes magazine.