Serinus Energy quits Ukraine to focus on Romania gas Moftinu property

Resano Trading, affiliate of Burisma Group Ukraine takes over the Serinus Energy gas assets in Ukraine. Serinus will focus on its Romania gas discovery property in Moftinu.

Serinus Energy Inc. (“Serinus”, “SEN” or the “Company”) (TSX:SEN)(WARSAW:SEN), announced the final closing of the sale of its interests in Ukraine to Resano Trading Ltd., an affiliate of the Burisma Group, a Ukraine entity actively involved in the upstream oil and gas industry in Ukraine.

Serinus sold all of the 70% of the outstanding shares of KUB-Gas Holdings Limited (“KHL”) owned by the Company. KHL in turn, owns 100% of the shares of KUB-Gas LLC (“KUB-Gas”). KUB-Gas (directly and indirectly through its subsidiary, KUB-Gas Borova LLC) owns 100% of and operates the six licences/permits in Ukraine which contain the Olgovskoye, Makeevskoye, Vergunskoye and Krutogorovskoye gas fields. KUB-Gas was assigned gross 2P reserves of 64.5 Bcf and 459 Mbbl of NGL’s (45.1 Bcf and 321 Mbbl SEN WI)(1) at December 31, 2014. Estimated gross production in Q4 2015 was 22.9 MMcfe/d (16.0 MMcfe/d SEN WI), of which 98% was natural gas.

The effective date of the sale was December 31, 2015. Serinus received total cash consideration of $32.8 million including all working capital and inter-company adjustments. Subsequent to closing, the Company will repay a total of $19.2 million of debt and accrued interest to the European Bank for Reconstruction and Development against its Tunisia and Romania credit facilities. The balance of the proceeds will be used to help fund development of the Moftinu gas discovery in Romania.