SERINUS ENERGY INC. - Serinus Energy Third Quarter Operations Update

Current Report No. 43/2014Date: 2014-10-10Issuer's

trading name: SERINUS ENERGY INC.

Title: Serinus Energy Third Quarter Operations Update

Legal basis: other regulations

Content:Pursuant to Article 62.8 of the Act of 29 July 2005

on Public Offering [...] the Management of SERINUS ENERGY INC. ("Serinus"

or the "Company") informs that in Canada via the SEDAR

system it has published update for Company's third quarter operations.

Third Quarter Production and Realized Prices

Average corporate production for the third quarter was 5,696 boe/d (SEN

WI), representing a 15% increase from 4,964 boe/d in the second quarter.

Production for the first 8 days of October to date has averaged 5,821

boe/d.

Gas and condensate production in Ukraine during the third quarter were

26.3 MMcf/d and 86 bbl/d respectively (both volumes are SEN's 70% WI).

These volumes are 23% higher and 15% lower than the second quarter. The

increase is due substantially to the M-17 well which averaged 11.9

MMcf/d (8.3 MMcf/d SEN WI) during the quarter.

Production in Ukraine for October to date has averaged 37.4 MMcf/d and

121 bbl/d (26.2 MMcf/d and 85 bbl/d SEN WI). This is 24% above 2013 exit

production. KUB-Gas LLC ("KUB-Gas"), Serinus' indirectly

owned 70% subsidiary, is the owner and operator of the Ukrainian

licences.

The estimated prices received in Ukraine during the quarter were

$10.16/Mcf and $81.47/bbl for natural gas and liquids respectively. The

gas price was marginally lower than the $10.23/Mcf realized in Q2 2014.

Gas sold in Ukraine by KUB-Gas is based on the import price of Russian

gas, which in turn is linked to the price of oil. KUB-Gas is paid in

UAH, making its realized price in USD also subject to exchange rate risk.

Overall production in Tunisia for Q3 was 1,183 boe/d, 9% lower than the

1,301 boe/d in Q2. Oil averaged 889 bbl/d, and gas was 1.7 MMcf/d.

Estimated realized prices during the quarter were $99.54/bbl and

$14.56/Mcf. There was one tanker lift of oil during Q3.

Tunisia production for October to date has averaged 1,379 boe/d,

comprised of 1.9 MMcf/d of natural gas and 1,055 bbl/d.

Note: the volumes and prices referred to above are subject to minor

revisions once final allocations and invoices are received.

Drilling & Workover Update

As disclosed in our press release of October 2, 2014, KUB-Gas has

resumed drilling activities in its Makeevskoye licence with the spud of

the M-22 well. The primary target in M-22 is the S6 zone in the

Serpukhovian section which has proven very prolific in the M-16, M-17

and O-15 wells. Total time to drill, test and complete is expected to be

approximately 80 days. This is the first well of five currently

contemplated, with additional drilling to be determined after management

and the Board of Directors approve the 2015 capital budget, expected in

December.

In Tunisia, the Winstar-12bis well ("Win-12bis") in the

Sabria was spud on July, and has reached 3,681 metres. Progress has been

slower than anticipated due substantially to rig breakdowns in late

August/early September, and early October. The intermediate casing is

being run, after which drilling will resume to the planned total depth

of 3,840 metres, which is anticipated to take until the end of October.

Once drilling is complete, the rig will move to the Winstar-13 ("Win-13")

location. Both wells are targeting the Hamra and El Atchane formations

currently producing in other wells in the Sabria field.

In Ech Chouech, both the EC 4 and ECS-1 wells were worked over to remove

debris left in the wellbores by previous operators, and perforated in

the Devonian Ouan Kasa formation. Operations to fracture stimulate ECS-1

have commenced, and the frac' spread will move to EC-4 immediately

thereafter. Both wells will subsequently be flow tested to tanks on site.

The CS-8bis well in Chouech Es Saida was worked over to replace the

downhole pump, and it will be restarted once the workover rig is moved

off. Another workover is underway on CS 11 to replace the existing rod

pump with an electric submersible pump.

Ukraine Outlook

Following M-22, the other four currently planned wells are M-15, NM-4, M

24, and M 25. M-15 is a development well targeting the S5, S6 and S7

zones discovered and appraised by the M-16 and M-17 wells. M-24 and M 25

are potential appraisal/development locations to M-22. The NM-4 well, an

exploration well that will test a Moscovian stratigraphic play, had

reached a depth of 102 metres in June prior to the cessation of the

Company's drilling and workover activities in the area. If successful,

NM-4 would validate a new play type and potentially expand KUB-Gas'

drilling inventory significantly.

A fracture stimulation campaign previously planned in October for O-11

and O-15 (both R30c and S6 zones), NM-3 (Visean oil potential) and M-17

(S7) has been deferred to 2015.

The official gas price for the month of October is 4,874 UAH per Mcm

(excluding 20%VAT), or $10.62/Mcf using an exchange rate of 13 UAH/USD.

The actual price received by KUB-Gas will be approximately 4% - 5% less

for the profit margin of the intermediaries through which the gas is

sold. It will also continue to be influenced by changes in the exchange

rate. During the month of September, that rate fluctuated between 12.35

and 14.40 UAH/USD.

Tunisia Outlook

Win-12bis is expected to reach its planned total depth by the end of

October, after which the rig will move to Win-13. Win 12bis will be tied

into the flowline following rig release, and put on an extended

production test during the drilling of Win-13. Depending on the results

achieved, the Company may elect to have the rig return to Win-12bis and

drill a horizontal leg.

After an anticipated rig move of 3 - 4 weeks, Win-13 is expected to take

approximately 90 days to reach its planned total depth of 3,860 metres.

The plan is currently to drill a vertical well, but does contain

provisions to drill a horizontal leg, depending partly on the interim

production data from Win 12bis. Drilling time for the horizontal leg

will be incremental to the 90 days mentioned above. Win-13 will also

have a flowline ready once the rig is released, so testing and

production will commence shortly thereafter.

As mentioned above, stimulations on EC-4 and ECS-1 are now underway. If

these result in commercial production rates, the Company believes that

there may be significant potential across the Ech Chouech and Chouech Es

Saida permits as electric logs show good correlation of the Ouan Kasa in

8 wells, 7 of which had either oil shows or production tests. The EC-4

well tested 490 bbl/d of oil from the unstimulated Ouan Kasa in 1981,

but was never completed for production.

A 203.5 km2 3D seismic program over the Sanrhar field was completed on

August. Legacy sparse 2D data indicates a number of four-way structural

closures which this program will investigate more thoroughly. Current

production from Sanrhar is 50 - 60 bbl/d of oil from a single well,

which has produced 421 Mbbl of oil to the end of 2013. Processing and

interpretation is expected to be finished in Q1 2015.

Romania Outlook

This year's program includes two exploration wells and 180 km2 of 3D

seismic. The two wells, Moftinu-1001 and 1002bis, will be drilled back

to back, with the spud of the first well expected at the beginning of

November this year. The two wells are expected to take approximately 45

days to drill and case, including time for the rig move between the two

locations. Both are targeting Pliocene/Miocene aged channel sands at a

depth of approximately 1,800 - 2,000 metres, which have been identified

on 3D seismic. Pending success, completion and testing of both wells is

anticipated during Q1 2015. A previous well, Moftinu-1000, drilled in

2012 without the benefit of the 3D data, encountered gas but was

subsequently found to be at the edge of the structural closure.

Shooting of the new 3D seismic program also commenced in mid-September,

and is expected to take 6 - 8 weeks. The survey area covers 180 km2

located approximately 35 km southwest of the Moftinu field against the

western boundary of the Satu Mare concession. This area is in a

well-established hydrocarbon fairway on the edge of the Carei graben,

and overlies the Santau oil pool.

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.

This text contains selected excerpts from the original news release in

English, which has been filed by Company in Canada (country of its

registered office ) by way of the SEDAR system and is available at the

website www.sedar.com by entering the Company name at

http://www.sedar.com/search/search_form_pc_en.htm. The Polish

translation of the entire text of the news release is available at the

website: www.serinusenergy.com

More information on page: biznes.pap.pl

kom espi pif/