Serinus Puts Expansion on Hold

Serinus Energy saw Romanian gas output rise sharply in the first half of the year but generally its operational progress has been hampered by the restrictions on movement of equipment and personnel in the wake of Covid-19. It said August 14 that "all future capital investment plans have been postponed. Capital will only be allocated to ensure the safe and continued operation of our production facilities."

For the six months ended June 30, average production (boe/d) rose by 1,815 barrels of oil equivalent (boe)/day, from 680 to 2,495 boe/d. Most of that total – 1,903 boe/d – came from Romania, which last year saw 371 boe; the remaining 592 boe/d came from Tunisia up from last year's 308 boe/d.

Serinus' Romanian 3D acquisition programme was due to be completed in the first half of 2020 but has been postponed. Production increases in Tunisia have been lower than planned owing to a travel restrictions. However, it did almost halve the production expense per barrel, cutting it from $16.54 to just $8.68.

For the six months Serinus generated $13.3mn, more than twice last year's $6.4mn in gross revenue; or $12.4mn net of royalties. This compares with last year's $6.4mn net of royalties. This was comprised of $9.9mn in Romania and $3.4mn in Tunisia. While Tunisian earnings were flat, in Romania they were treble the same period last year.

Funds from operations were also tripled, from $1.4mn to $4.3mn, despite the fall in oil price to an average $31.96/b from $63.07/b and an average gas price falling from $7.82/'000 ft³ to $4.74/'000 ft³.