Corporate Presentation
May 2015
Disclaimer
This document has been prepared by the Management of Serinus Energy Inc. (the "Company“ or “Serinus”) and its subsidiaries. It contains information
concerning the Company and its subsidiaries.
Prior to making a decision to invest in the Company or any securities relating to the Company, you should rely upon your own investigations regarding
the Company and, as applicable, your own professional experience and expertise in investing in entities such as the Company, or the impartial and
professional advice of someone having such experience and expertise.
This document was developed for the purposes of providing a presentation on the Company’s activities and operations to institutional investors and others
who have relevant professional experience in matters relating to making investments in entities such as the Company. It is provided on the basis that the
information contained in it is intended for indicative and information purposes only, is not to be relied upon by any person or class of persons in any way
whatsoever for any purpose and is not intended to act as a representation of any nature by the Company or any other person as to the value of the
Company, or regarding the merits of investing in the Company. Some of the information contained in this document may be still in draft form and/or may
not have been legally verified and therefore remain subject to material revision or change.
This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to substantial risks and uncertainties. All
information and statements within or inferred within, other than statements of historical fact, are to be considered forward-looking. Such forward-looking
information and statements may be based on current expectations, estimates, projections and assumptions about global and regional economic conditions,
geological and/or geophysical interpretations of specific prospects or areas, commodity prices, expected capital and operating costs and other factors and
may include internal estimates of potential or possible recoverable reserves from various prospects or properties.
While all of the forward-looking information and forward-looking statements reflect the Company’s current intentions, beliefs and expectations there can be
no certainty that all current intentions will be carried out or that all current beliefs and expectations will prove accurate or correct. Many factors can cause
actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company
cannot be relied on as a guide to future performance. No assurances is given that such statements, or that the expectations, estimates, projections or
assumptions which contribute to such statements, will prove accurate and, therefore, readers are advised to rely on their own evaluation of such
uncertainties.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitations of any offer to purchase or subscribe for, any
securities of the Company nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or
investment decision in relation thereto.
This document is copyrighted. No part of it may be copied or reproduced in any way without the prior written consent of the Company.
The Company’s securities have not been and are not presently anticipated to be registered under the US Securities Act of 1933, as amended (the "Securities
Act"). They are not offered or sold in the United States, or to for the account or benefit of, US persons (as defined in Regulation S under the Securities Act)
absent registration under the Securities Act or an exemption from the registration requirements thereof.
2
Corporate Overview
Corporate Capitalization as at March 31, 2015
Shares Outstanding
(millions)
78.63
In-the-Money Options
Fully Diluted Shares
Remaining Options
Long Term Debt
Working Capital Deficit
(millions)
(millions)
(millions)
($MM)
($MM)
nil
78.63
3.03
$44.5
$7.7
Major Shareholders - Kulczyk Investments - 50.8%, Pala Investments -7.5%,
Management & Directors - 2.3% (other than KI and Pala)
Exercise prices: C$1.56 - US$6.20, average $4.59
Includes $6.8 million of current debt
Serinus reports in US dollars. All dollar amounts referred to herein whether as dollars, dollars per share, bbl, Mcf or boe are in US dollars unless specifically otherwise noted
Market Capitalization
Toronto Stock Exchange (SEN)
C$1.23
$80.5 million (USD),
$96.7 million (CAD)
3,850
5 analysts
Share Price (May 12, 2015)
Market Capitalization
Liquidity (shares/day, latest month average)
Research Coverage
Warsaw Stock Exchange (SEN)
PLN 3.79
PLN 298 million
238,150
TSX Closing Price (CAD)
$3,75
$3,25
November 2014
Gov't resolutions giving Naftogaz
preferred market share
January 13th
Brent Crude hits
$46.59/bbl
$2,75
$2,25
$1,75
$1,25
$0,75
July 31st
Ukraine passes new
royalty bill
TSX
WSE
10,5
9,5
8,5
7,5
6,5
5,5
4,5
3,5
2,5
WSE Closing Price (PLN)
Stock Performance
3
Our Core Operations
Germany
Russia
Poland
UKRAINE
France
ROMANIA
Italy
Spain
Turkey
TUNISIA
Algeria
Libya
Tunisia (oil)
2P Reserves1: 11.7 MMboe
Production2: 1,565 boe/d (75% oil)
Romania (gas)
Near-term appraisal / development
opportunity with exploration upside
Development opportunities and
exploration upside
1.
2.
As per independent 3rd party reserve evaluator as at December 31, 2014
Average production for April 2015
Ukraine (gas)
2P Reserves1: 7.8 MMboe
Production2: 2,916 boe/d (98% gas)
Development, appraisal and
exploration growth potential
4
Solid Operating Record
Serinus has achieved double digit growth in production, cash flow and
reserves since assuming an operating role in 2010
Production History 2010 - 2015
50
5 000
40
4 000
62% CAGR
MMboe
boe/d
Serinus Reserves 2010 - 2014
6 000
3 000
30
1P 12% CAGR
2P 47% CAGR
3P 59% CAGR
20
2 000
10
1 000
-
-
1P
Quarterly Production/sh & CFPS 2010 - 2014
60
CAGR*
To Q4 2014: 78%
To Q1 2015: 41%
50
$0,25
0,5
$0,20
$0,15
40
30
0,6
$0,10
53% CAGR
$0,05
MMboe/sh
70
0,4
1P 23% CAGR
2P 63% CAGR
3P 76% CAGR
0,3
0,2
20
$0,00
10
($0,05)
0,1
-
($0,10)
-
* Calculated from Q1 2011
3P
Serinus Reserves/sh 2010 - 2014
$0,30
CFPS
boe/d per million shres
80
2P
1P
2P
3P
5
Tunisia
Overview
•
5 blocks, all operated, 100% WI except Sabria (45%)1
•
Acquired as part of Winstar Resources in June 2013
•
WIN-12bis well started production in December 2014, now
producing 1,000 boe/d (450 boe/d SEN WI)
•
WIN-13 recently started up at 183 boe/d (83 boe/d SEN WI)
WI Production
Chouech Es Saida
Ech Chouech
Sabria
Sanrhar
Total
(boe/d)
(boe/d)
(boe/d)
(boe/d)
(boe/d)
Q1/15
831
27
653
68
1,585
Q2/152
802
4
691
68
1,565
Approximately
75% oil
WI Reserves3 (YE 2014)
Reserves
Reserve Life Index
Future Dev. Capital
1.
2.
3.
(MMboe)
(years)
($MM)
1P
4.28
7.5
21.3
2P
11.67
20.4
49.1
Terms of each concession are summarized on page 25
Average production for April 2015
As per independent 3rd party reserve evaluator as at December 31, 2014
3P
24.99
43.7
70.3
6
Tunisia: Netbacks
Tunisia After Tax Netbacks 2011 - 2015
2 000
$120
$100
$/boe
$60
$71,96
$0
$70,84
$55,57
$54,83
$53,85
1 000
$33,12
$19,93
$40
$20
$48,76
$6,44
$29,24
$29,21
$26,54
$13,55
$12,57
$9,96
$1,29
$20,16
$6,51
Q2 2014
Q3 2014
Q4 2014
Q1 2015
$10,29
$1,95
$13,46
$6,18
$14,95
$20,67
$23,04
$14,81
$15,12
$14,86
2011*
2012*
$34,41
$13,67
H2 2013
Q1 2014
Royalties
Operating Costs
Cash Taxes
boe/d
1 500
$80
500
0
AT Netback
Indicative 2015 Tunisia Netbacks
$70
$60
$/boe
$50
$40
$30
$20
$7,54
$3,08
$10,44
$4,26
$22,00
$13,33
$19,13
$16,23
$22,02
$5,45
$6,63
$7,81
$8,99
$22,00
$22,00
$22,00
$22,00
$22,00
$4,88
$5,48
$6,09
$6,70
$7,31
$7,92
$40,00
$45,00
$50,00
$55,00
$60,00
$65,00
$10
$0
Brent Crude ($/bbl)
Royalties
Operating Costs
Cash Taxes
AT Netback
Although significantly reduced, Tunisia after-tax netbacks remain positive
even at $40/bbl oil prices
* As published by Winstar Resources in 2011 and 2012, prior to acquisition by Serinus
7
Tunisia Production History
Winstar Tunisia Production 2013 - 2015
1 800
1 600
Workover
program start
WIN-12bis
spud
1 400
boe/d
1 200
1 000
800
Increases from workovers,
WIN-12bis start-up Dec. 10
600
400
Full effect of WIN-12bis
200
WIN-13 start up on April 28
(too late for material effect)
-
•
Serinus acquired Winstar Resources in June 2013
•
Balance of 2013 spent upgrading operating procedures and standards, improving community and
labour relations, acquiring new 3D seismic and finalizing development plan
•
Drilling program unable to commence until late Q2 2014 due to rig availability
•
Q4 2014 reflects workover program returning wells to production, and the addition of WIN-12bis
production in December
* Average production for April 2015
8
Sabria: A Large, and Largely Undeveloped Resource
YE 2014 Sabria Reserves (SEN 45% WI)
Oil
Gas
Boe
(MMbbl)
(Bcf)
(MMboe)
1P
1.92
4.47
2.67
2P
5.53
12.87
7.68
3P
12.79
29.74
17.75
1.
P50, per independent 3rd party evaluator as at December 31, 2014
2.
Average of the five producing wells and three development wells (including
WIN-13 ) contemplated in YE 2014 reserves evaluation
•
•
•
•
Field extends over 22,000 acres
356 MMBbl of OOIP1
Only 8 wells have been drilled
2014 Reserves Evaluation
•
Too few wells have been drilled to justify assigning reserves
over the entire mapped accumulation
•
Average 2P EUR of 1.5 MMBbl per well plus solution gas
(approx. 2.0 MMboe per well)2
•
A comparable field in North America could have up to 20 wells
9
Chouech Es Saida/Ech Chouech
Triassic Oil Development
CHOUECH ES SAIDA
172 km² *
(2,200 – 2,350 m)
•
Cumulative production to date from the Triassic TAGI
sand is approximately 4.8 MMbbl of oil
•
•
Individual wells up to 3 MMbbl
TAGI also encountered in CS-Sil-10, may set up
additional exploration drilling
CS Sil-1
ALGERIA
Silurian/Ordovician Exploration
CS Sil-10
•
•
Success in CS Sil-1 and CS Sil-10
•
•
Very high historical CoS (>90%) using 3D seismic
EC-3
CS-1
14 km
CS-4
EC-2
TUNISIA
EC-1 EC-4
ECH CHOUECH
136 km²
ECS-1
(3,670 - 3,890 m)
More gas prone to the south (deeper) – Nawara Gas
Pipeline will be a development catalyst
Wells have tested up to 120 MMcf/d in South Tunisia
Silurian Fan Exploration
•
•
New play type – base of slope fans
CS Sil-1 and Sil-10 prove hydrocarbons in the system
Devonian (AO) Exploration
•
•
(4,270 – 4,490 m)
(3,000 – 3,150 m)
Amplitude anomaly
Offset analogs in Libya and Algeria
Devonian (Ouan Kasa) Exploration
3
6
12 km
* ETAP lists Chouech Es Saida as 212 km²
•
•
•
•
(3,000 – 3,150 m)
Oil shows/production/tests in 7 of 8 penetrations
Logs from all wells correlate
Ouan Kasa correlation
Potentially large stratigraphic trap
Post frac’ evaluation EC-4 and ECS-1 underway
10
Romania
Overview
Ukraine
Pipelines
Gas Field
Oil Field
•
Satu Mare Concession in northwest Romania
•
•
•
Recent
Discovery
Oil & Gas Field
3D Seismic
765,000 gross acres onshore Romania
Acquired as part of Winstar Resources in June 2013
Located within the Pannonian basin on trend with
existing oil and gas fields and close to infrastructure
Hungary
Satu Mare
Moftinu 1001 Moftinu 3D
Seismic
Moftinu 1002Bis
•
•
Serinus operates with 60% working interest
•
Owned and operated through wholly owned subsidiary
Winstar Resources S.A.
•
•
Phase 1 & 2 exploration obligations now complete
Phase 3 Exploration period being negotiated for a three
year term plus a 2 year extension
Santau 3D
Seismic
Romania
First two wells drilled by Serinus result in two
discoveries
•
Moftinu-1001 well encountered highly prolific gas sands
with estimated 17 - 30 Bcf of recoverable gas
•
Moftinu-1002bis found movable gas in a deeper, tight
formation with resource potential
•
Inventory of leads and prospects with over 100 MMboe of
unrisked prospective resources, and growing.
11
Romania: Fiscal Terms
Attractive Fiscal Regime and Ongoing Gas Price De-Regulation
•
•
Industrial segment (75% of Romanian market) is now substantially at European market price
Blended average gas price is now ~ 88% of European market price
Proposed Price De-Regulation Schedule
Sector
Industrial
Residential
% of Market
Current
Price/Market
Expected
Parity
75%
25%
100%
52%
Q4 2018
Romania Fiscal Regime
Oil Royalties
3.5% - 13.5%
Gas Royalties
3.5% - 13.5%
Income Tax
16%
VAT
24% (refundable)
Indicative Gas Netbacks at Current Residential/Industrial Split
Market Gas Price
Industrial
Residential
Realizable Price
Royalties (avg. 5%)
Operating Costs
Field Netback
Taxes (16%*)
AT Netback
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
($/Mcf)
$5.00
$5.00
$2.60
$4.40
($0.22)
($1.00)
$3.18
($0.51)
$2.67
$5.50
$5.50
$2.86
$4.84
($0.24)
($1.00)
$3.60
($0.58)
$3.02
$6.00
$6.00
$3.12
$5.28
($0.26)
($1.00)
$4.02
($0.64)
$3.38
$6.50
$6.50
$3.38
$5.72
($0.29)
($1.00)
$4.43
($0.71)
$3.72
$7.00
$7.00
$3.64
$6.16
($0.31)
($1.00)
$4.85
($0.78)
$4.07
$7.50
$7.50
$3.90
$6.60
($0.33)
($1.00)
$5.27
($0.84)
$4.43
* Calculated on field netback with no deductions for depreciation
Estimated Romanian netbacks remain robust over a wide range of gas prices
12
Moftinu Gas Discoveries
A2 Sand Structure Map
Moftinu-1001
•
•
Drilled in November 2014
Tested in late March 2015
•
•
•
Estimated 17 - 30 Bcf1 of potentially
recoverable gas
•
•
7.4 MMcf/d and 18 bbl/d condensate
Skin factor +8.5
Wide range reflects various calculation methods
and single well with limited production history
Several untested shallower zones
Moftinu-1002bis
•
•
Drilled in December 2014
Tested in April 2015
•
•
Initial rate of 2.8 MMcf/d decreasing to 0.25 MMcf/d
within 2.5 hours, no water
Reservoir is tight and damaged
Moftinu-1000
•
Mapping indicates 27 Bcf of original gas in
place1
•
Drilled in 2012 - tested 1.6 MMcf/d from two
zones
•
Gas analysis suggests possible liquid
recoveries of 25 bbl/MMcf
•
3D seismic acquired subsequently showed well
to be off structure
1.
P50 best estimate by Company
13
Moftinu Cross Section: Stacked Sands & Multiple Targets
Gas shows
on test
Stabilized aggregate test
rate of 7.4 MMcf/d
}
Good gas shows, oil staining
and fluorescence
Gas shows
on test
}
Gas shows
on test
No stabilized rate
Formation tight and damaged
{
Prospective
Miocene sands
14
Conceptual Moftinu Development
Legal and Regulatory
•
•
Obtain Phase 3 extension of the Exploration Period
Conceptual Initial Moftinu Development
Establish a Production Concession at Moftinu
Initial Production Configuration
•
•
•
Moftinu-1001, 1000, and 1002bis
3 development locations
Additional locations to be added later pending
success in other zones identified as having
hydrocarbon potential
Gas Plant & Gathering System
•
Dehydration, NGL/condensate recovery,
compression (if required)
•
Facilities at nearby depleted field may be available
for purchase or tie-in
Offtake Capacity
•
Note: This schematic is indicative only. Locations of facilities, development
wells and tie in points subject to modification.
16” Sales line running through north Moftinu
15
Satu Mare Exploration and Appraisal Potential
•
•
Satu Mare is on trend with an established
hydrocarbon fairway to the southwest
•
Historical fields have contained both gas and
oil, at sizes well above commerciality
thresholds
•
Discoveries at Moftinu, Madaras and Santau
confirm that fairway continues into Satu Mare
Berveni
Significant Exploration Potential and Still
Growing
•
•
•
Field Size: 0.2 – 6.0 MMboe
3.9 MMboe (avg)
Moftinu
Lead and prospects with 100 MMboe of
unrisked prospective resources1 identified to
date
Madaras
Santau
Scoping study of concession is not yet
complete – inventory could grow further
Exploration efforts will commence in areas
offsetting Moftinu and Santau
•
•
1.
Suplacu de Barcau
144 MMbbl
Proposed 3D surveys in Berveni and Madaras
Initial focus on gas prospects using 3D
seismic and Direct Hydrocarbon Indicators
Company estimate
Field Size: 0.2 – 21.4 MMboe
10.4 MMboe (avg)
16
Ukraine
Overview
•
5 blocks, all operated, 70% WI(1)
•
Total of 370 km2 (gross) under licence
•
Own and operate drilling, snubbing and workover rigs,
and gas facilities with 68 MMcf/d capacity
•
Inventory of drilling locations
WI Production
Licence
Olgovskoye
Makeevskoye
Vergunskoye
Krutogorovskoye
Total
(MMcfe/d)
(MMcfe/d)
(MMcfe/d)
(MMcfe/d)
(MMcfe/d)
Q1/15
Q2/15(2)
7.3
9.7
nil (3)
nil (3)
17.0
7.6
9.9
nil (3)
nil (3)
17.5
Approximately
98% gas
WI Reserves(4) (YE 2014)
1P
2P
3P
(Bcfe)
(MMboe)
20.2
3.4
47.1
7.8
77.9
13.0
Reserve Life Index
(years)
3.2
7.4
12.2
Future Dev. Capital
($MM)
$13.1
$13.2
$13.1
Reserves
1.
2.
Serinus holds a 70% interest in KUB-Gas LLC which owns and operates the Ukraine Licences
Average for April 2015
3. Shut in since June 2014 due to security issues
4. As per independent 3rd party evaluator as at December 31, 2014
17
Ukraine Development: Living Within Cash Flow
Capital Controls Restrict Development Funding to Internal Cash Flow
$14,00
30
$12,00
25
$/Mcfe
$10,00
$5,80
$8,00
$6,29
20
$6,02
$4,25
$6,00
$4,00
$0,09
$2,19
$2,34
$1,46
$2,00
$0,93
$1,46
$2,09
$2,34
$2,92
2011
2012
2013
$6,06
$4,38
$1,11
$1,31
$1,43
$0,49
$0,90
15
$4,25
$4,77
$4,99
5
Q3 2014
Q4 2014
Q1 2015
$0,77
$0,85
$0,89
$1,20
$0,90
$1,09
$2,33
$2,26
Q1 2014
Q2 2014
$2,50
$0,00
10
MMcfe/d, (70% SEN WI)
Ukraine After Tax Netbacks 2011 - 2015
0
Royalties
Operating Costs
Taxes
AT Netback
Government Policies in 2014-15 Have Significantly Reduced Cash Flow
•
•
•
Effective royalty rate has almost tripled since Q2 2014
Government intervention has weakened the natural gas market and realizable prices
Cash flow will cover only minor development projects, no new drilling planned for 2015
Signs of Improvement
•
•
Re-instatement of two year relief period for gas royalties on new wells (effective April 1, 2015)
Court decision to overturn legislation restricting the natural gas market (March 2015)
18
Ukraine: Capable of Impressive Growth
Ukraine Production History 2010 - 2015
30
MMcfe/d (SEN 70% WI)
25
20
Annual Growth Rates Since Q3 2010:
to Q3 2014: 73%
to Q1 2015: 38%
Rates restricted due to sales gas
dew point issues
15
10
5
Rates further restricted due to
government market restrictions
-
* Average production for April 2015
Reasonable Fiscal Conditions Have Yielded Impressive Growth
•
Serinus entered Ukraine in mid 2010 with the acquisition of 70% of KUB-Gas LLC
•
With modern technical and management techniques, production increased by 73% per
annum to Q3 2014 (prior to effects of royalty and market access changes)
•
Ukraine licences still have more exploration and development potential
19
Ukraine: Exploration and Development
NM-3 Visean Oil
O-15 Serpukhovian Gas
Discovery – July 2013
Discovery - July 2013
Ukraine licences still have
significant potential
Ukraine Resource Assessment1
NM-3
NM-4
O-24
O-15
O-11
Olgovskoye
Plant
North
Makeevskoye
Olgovskoye
M-16 Serpukhovian Gas
Licence
Contingent Prospective
(Bcfe)
Olgovskoye
16.7
55.3
(Bcfe)
Makeevskoye
16.8
6.9
(Bcfe)
N. Makeevskoye
1.6
(Bcfe)
Vergunskoye
Krutogorovskoye (Bcfe)
10.6
Total (Bcfe)
44.1
63.8
1
Prospective oil resources of 2.1 MMbbl in Visean
formation in North Makeevskoye
Discovery - December 2012
M-17
M-17 Successful Appraisal
Well - March 2014
M-22
Legend
Gas wells
M-16
M-15
Gas Plant
Expanding the Inventory
Old Makeevskoye
Plant
Makeevskoye
M-22 Successful
Exploration Well – Jan 2015
Drilling location
Bashkirian/Moscovian
Producing
Nonproducing
Sales Line
Serpukhovian
Producing
Visean
Nonproducing
1.
Nonproducing
New Makeevskoye
Plant
• M-22 validated presence of gas on
the southwest side of the regional
fault.
• Stratigraphic traps in North
Makeevskoye, NM-4 to be the first
test
• Possible oil resources in North
Makeevskoye –pending further
testing of NM-3
Unrisked P50 (contingent) or Best Estimate (prospective) as per independent 3rd party evaluator as at December 31, 2014
20
Valuation
Market Capitalization
(USD)
$1.02
(millions)
78.63
Market Capitalization
($MM)
$80.5
Net Debt1
($MM)
$52.2
Enterprise Value
($MM)
$132.7
Current Share Price (May 12, 2015)
Shares Outstanding
(C$1.23)
(2)
SEN Trading Parameters (at May 12, 2015)
EV/2P boe
EV per boe/d
($/boe)
$6.80
($ per boe/d)
$29,600
International Peer Group
EV/2P boe
EV per boe/d
Low
High
Median
$2.11
$16.93
$7.00
$12,800
$108,700
$38,000
Serinus is trading below median levels in a depressed sector
•
•
Geopolitics in Ukraine have overshadowed share price since early 2014
•
Ukraine remains a promising asset in the longer term
Continued success in Romania and Tunisia should contribute to more normal
valuations
1. Long term debt plus working capital deficit
2. Long term debt and working capital deficit were $44.5 million and $7.7 million as at March 31, 2015.
21
2015 Capital Program
$17 million Capital Program
•
2015 capex is constrained by two critical factors
•
•
•
Tighter fiscal terms in Ukraine further restrict available cash flow, and make some projects economically
unviable
Flexibility due to modest work commitment and lease retention obligations
•
•
•
Commodity prices
Only Moftinu completions and testing and some testing work in North Makeevskoye are required in 2015
Any other capital spending is placed into contingent category
Plan for 2015
•
Completion of 2014 work that carried over year-end, and work commitments
($million,
SEN WI)
Tunisia
$10.5
Ukraine
$4.21
Romania
$2.3
Major Items
•
•
•
•
•
•
•
WIN-13 drilling and completion
Complete ECS-1 with coiled tubing and tie-in
Other: Sanrhar 3D seismic processing and Sabria de-bottlenecking
M-22 completion, testing and tie-in
Field compression
Moftinu-1001 and 1002bis completion & testing
Santau 3D seismic processing
1.
SEN 70% WI. Gross amount is $6 million
22
Recap
Significant Growth Potential in all Three Countries
•
Repeating history of operating success in Tunisia and Romania
•
Both Ukraine and Tunisia are cash flow positive at current and lower commodity prices
•
Tunisia – significant Sabria Field upside potential demonstrated by Winstar-12bis
production rate
•
Romania has potential to become a significant new operating theatre for the Company
•
All three countries have multi-year prospect inventories
•
In medium to longer term, Ukraine still has exploration and development potential once the
political and security situations and the fiscal regime improve
23
Appendix
24
Property Types and Fiscal Terms
Property
Ukraine
Working
Interest
VAT
Oil/Liquids Royalty
Income Tax
55%,
30.25% for 1st two
years on new wells(3)
18%
70%
20%
Chouech Es Saida
(Permit)
100%(1)
-
15%
15%
35%
Ech Chouech
(Permit)
100%
-
15%
15%
35%
Sabria
(Concession)
45%
-
2% - 15%
Based on R-factor
2% - 15%
Based on R-factor
50% - 75%
Based on R-factor
Zinnia
(Concession)
100%
-
2% - 15%
Based on R-factor
2% - 15%
Based on R-factor
50% - 75%
Based on R-factor
Sanrhar
(Concession)
100%
-
12.5%
12.5%
55%
60%(2)
24%
3.5 % - 13.5%
3.5 % - 13.5%
16%
Tunisia
(All blocks)
Romania
(Satu Mare Licence)
45%
(3)
Gas Royalty
1. ETAP has 50% back-in option at 6.5 MMbbl of cumulative net (after royalties) production, current cumulative net production was ~5.1 MMbbl
as at the end of Q4 2014
2. Serinus paid 100% of Phase 2 Exploration work commitments pursuant to farm-in agreement. Phase 2 obligations were fulfilled with the
recent drilling and testing of Moftinu-1001 and Moftinu-1002bis, and the acquisition of the Santau 3D seismic program in 2014.
3. Effective August 1, 2014, liquids and gas royalty rates increased to 45% and 55% respectively from their prior levels of 42% and 28%, with a
two year relief period of 30.25% for gas from new wells. That relief period was withdrawn effective January 1, 2015. Under new legislation in
early March 2015, that relief period was re-instated effective April 1, 2015
25
Senior Management
Tim Elliott - Director, President and CEO
Mr. Elliott, a lawyer by profession, started his international oil and gas career with the Lundin Group from 1987 to 1999 and has more
than 28 years of experience involving the management of public companies through exploration, appraisal, development and production
operations in different parts of the world.
Jock Graham – Executive Vice President and COO
Mr. Graham is a geologist with over 30 years of experience in a broad spectrum of technical and managerial roles in the international
oil and gas industry, including postings in South America, SE Asia, FSU and Middle East / North Africa, as well as the Western Canadian
Sedimentary Basin. Mr. Graham has been with the Company since its inception and has been instrumental in its growth and success.
Norm Holton - Director, Vice Chairman
Mr. Holton has over 40 years of experience in the oil and gas industry in technical and managerial positions. Prior to committing full time
attention to Serinus in 2006, Mr. Holton built the TUSK group of Companies, leading a management team that was responsible
for an 8-fold increase in value per share from 2000 to 2005.
Tracy Heck – CFO
Ms. Heck joined Serinus in June 2012 and was promoted to CFO in January 2014. Prior to joining Serinus, she was Controller
at NAL Energy Corporation from 2005, and also has 13 years of experience with KPMG where she was an associate partner.
Ed Beaman – Vice President Operations and Engineering
Mr. Beaman has more than 35 years of experience in oil and gas operations, engineering and exploration and development projects evaluating
projects in Canada, the United States, Colombia, Peru, Bolivia, Trinidad, Egypt, Romania, Poland, Slovenia, Russia and in the Ukraine. Prior
to joining Serinus in 2007 he provided advisory services on a part-time basis for a number of years.
Aaron LeBlanc – Vice President Exploration
Mr. LeBlanc is a geologist with 13 years of experience in exploration and development in both domestic and international venues. He has
worked in traditional carbonate and clastic reservoirs, conventional and thermal heavy oil and shale exploration. Prior to joining Serinus in
2011, he worked for Devon Energy for 9 years.
Jakub Korczak – Vice President Investor Relations and Managing Director CEE
Mr. Korczak has over 15 years of experience in investment banking, finance and investor relations. Before joining the Serinus team
as Proxy & Investor Relations Manager in 2009, he held the position of the CFO and management board member of Bank Pocztowy S.A.
(2009-2010). Before that, at BRE Bank, he was responsible for coordination of strategy and occupied the position of the investor relations
director (2005-2009).
Alec Silenzi- General Counsel, Vice President Legal and Corporate Secretary, Compliance Officer
Mr. Silenzi has 21 years of Canadian and international legal experience, the last 8 of which have been in general counsel roles.
Most recently he was a partner at the multi-national law firm Gowlings LLP, a large multi-national law firm.
26
Board of Directors
Helmut J. Langanger (Vienna) – Director, Chairman
Retired, formerly Group Executive Vice President EP, member of the Executive Board, and Managing Director Upstream for OMV
Group. Also served as Managing Director at OMV Exploration & Production Gmbh.
Timothy M. Elliott (Dubai) - Director, President and CEO of Serinus Energy
Norman W. Holton (Calgary) - Director, Vice Chairman of Serinus Energy
Stephen C. Akerfeldt (Toronto) – Director
President and director of Ritz Plastics Inc., former CEO and later chairman and director of Firstgold Corp,
and former CFO of Magna International Inc.
Evgenij Iorich (Zug) – Director
Manager, Pala Investments. Previously financial manager at Mechal OAO.
Gary R. King
(Dubai) – Director
CEO of Regalis Petroleum since May 2014. Prior thereto, CEO of Dutco Natural Resources Investments Ltd.,
President of US Subsidiary Tarka Resources Inc. and Vice Chairman of Manti LP. Managing Partner of Matrix Partnership since 2009.
Sebastian Kulczyk (Warsaw) – Director
President of the Management Board of Kulczyk Investments S.A. Prior thereto, he worked with Lazard Ltd.
and the digital media unit of SonyBMG.
Manoj Narender Madnani (Dubai) – Director
Managing Director (Dubai) and Board Member of Kulczyk Investments S.A. since 2007. Prior thereto, Managing Director
of The Marab Group.
Michael A. McVea (Victoria) – Director
Retired, former barrister and solicitor. Partner at McVea, Shook, Wickham and Bishop.
27
Analyst Coverage
Canaccord Genuity
Christopher Brown
FirstEnergy Capital
Stephane Foucaud
Macquarie Capital
Maison Placements
Concorde Capital
Brian Bagnell
Josef Schachter
undisclosed
28
Investor Contact
For further information, please refer to the Serinus Energy website
www.serinusenergy.com
or contact us directly:
Mr. Norman W. Holton
Mr. Gregory M. Chornoboy
Mr. Jakub Korczak
Vice Chairman Director – Capital Markets & Corporate
Development Vice President Investor Relations,
Managing Director CEE
Serinus Energy Inc.
Canada
Serinus Energy Inc.
Canada
Serinus Energy Inc.
Branch in Poland
T: +1 403 264 8877
E-mail: [email protected]
T: +1 403 264 8877
E-mail: [email protected]
T: +48 22 414 21 00
E-mail: [email protected]
Serinus Energy Inc.
Calgary Office
Dubai Office
Warsaw Office
Suite 1500, 700-4th Avenue SW
Calgary, Alberta, T2P 3J4,
CANADA
T: +1 403 264 8877
F: +1 403 264-8861
123, Al Shaffar Investment Building
3rd Interchange, Sheikh Zayed Road
P.O. Box 37174, Al Quoz
Dubai, UNITED ARAB EMIRATES
T: +971 (4) 339 5212
F: +971 (4) 339 5174
Nowogrodzka18/29
00-511 Warszawa,
POLAND
T: +48 22 414 21 00
F: +48 22 412 48 60
29