Serinus Granted New Licence in Kharkiv Oblast, Doubles Land Base in Ukraine

Serinus Energy announced on Monday that KUB-Gas, Serinus’ indirectly 70% owned subsidiary, has been granted a new concession in eastern Ukraine. The West Olgovskoye block was awarded to KUB-Gas Borova LLC (a newly incorporated subsidiary of KUB-Gas) by way of a Special Permit by the State Service of Geology and Minerals of Ukraine. 

“West Olgovskoye more than doubles our land base in Ukraine and should provide us with a multi-year inventory of exploration and development opportunities. The unique aspect of this new permit is the presence of the very large Druzhelyubovskoe field, which provides very strong evidence that the hydrocarbon fairway present in our Olgovskoye and Makeevskoye fields continues into West Olgovskoye” Tim Elliott, President and Chief Executive Officer of Serinus, commented in a note. 

West Olgovskoye is located in the Kharkiv oblast, immediately offsetting the Olgovskoye and North Makeevskoye licences currently owned and operated by KUB‑Gas. The term of this new Special Permit is for 20 years with the right to a 20 year extension, during which KUB-Gas will be allowed to conduct both exploration and production activities.

“We believe the terms of the permit are fair and reasonable. The bulk of the work commitments are not required until 2018 to 2020. In the interim, we hope that the political issues in the eastern part of the country will gradually improve, allowing the Ukrainian government to return to more growth oriented fiscal policies with respect to the energy industry” Elliott concluded.  

Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Ukraine, Brunei, Tunisia, Romania and Syria and with a risk profile ranging from exploration in Brunei, Romania and Syria to production and development in Ukraine and Tunisia.