Serinus Energy boosts hydrocarbon production 15% qoq in 3Q14



13 жовтня 2014 года
Конкорд Капитал

Serinus Energy (SEN)


International oil and gas E&P company Serinus Energy (SEN PW) reported a 15% yoy boost in its average daily output to 5,696 boepd in 3Q14, according to its Oct. 10 operating update. The growth was driven solely by an increase in its Ukraine output (+23% qoq to 4,513 boepd), while production at its Tunisian concessions decreased 9% qoq to 1,183 boepd. The company attributed its production growth in Ukraine to the successful commissioning of a new M-17 well (launched on June 26), which brought almost 31% of its Ukrainian hydrocarbon output in 3Q14. Meanwhile, total output at Serinus’s other Ukraine assets fell 14% qoq in 3Q14, we estimate.



The company also provided an update on its operations for the first eight days of 4Q14, reporting that its average output in Ukraine amounted to 4,442 boepd, or a 2% decrease compared to its average level in 3Q14. Output increased in Tunisia to 1,379 boepd, a 17% increase compared to 3Q14. The company provided little explanation for such growth in Tunisia. Most likely, it’s related to some byproducts from the testing of wells that it’s working over.



Serinus confirmed it has restarted its drilling program in Ukraine (after stopping it in late June, following increased risks for its operations in the Luhansk region) by initiating a new well at its Makeevskoye license, estimating its total time to drill at 80 days. On top of that, Serinus is planning to complete drilling of its Win-12bis well in Tunisia by the end of October.



Alexander Paraschiy: We can anticipate Serinus will report good operating results in Ukraine in 1Q14 given the encouraging production results of the M-17 well, as well as the resumed drilling of a new well in Ukraine that, according to the company, will target the same zone of its most successful wells. Yet despite all that, we remain conservative about the future growth of Serinus’s share price for exogenous reasons.



In particular, there’s the risk that the Ukrainian government may extend the gas production tax rate of 55% (up from 28%), which adopted in August for the remaining five months of the year. On top of that, declining oil prices will limit growth in revenue and profit from Serinus’s Tunisian assets, at least in the coming quarter.

Источник: Конкорд Капитал



Компании

все компании