Serinus Energy has received approval in Romania from the National Agency for Mineral Resources ('NAMR') to amend the last outstanding work commitment for the third exploration phase of the Satu Mare Concession.  In addition, NAMR has granted a 12-month extension to the work commitment due to the COVID-19 related disruptions, with the new exploration phase now expiring on 27 October 2021. A further extension, corresponding to the duration of the Romanian 'State of Emergency/State of Alert', will be added to the extension once the COVID-19 related 'State of Emergency/State of Alert' has been lifted.

The Company had previously chosen the option of conducting a 120 km2 3D acquisition programme as the third and last work commitment for this exploration phase.  As of the beginning of March, the Company had permitted a 148 km2 3D programme area in the Berveni area just north of the Moftinu gas plant.  The Company had reached land access agreements with all landowners within the seismic acquisition area and was in the process of mobilising the seismic equipment and staff.  This mobilisation was postponed due to the uncertainty regarding the COVID-19 pandemic, and the State of Emergency issued by the Romania Government on 20, March 2020 that restricted the ability to travel and procure services in Romania and Satu Mare County.  

Given the delay in the programme caused by the continuing COVID restrictions in Romania the Company approached NAMR and requested modifications of the work commitment. NAMR has accepted the Company's proposal to modify the final work commitment to drill two exploration wells, one to a total depth of 1,000m and a second well to a depth of 1,600m.

The first well, Moftinu-1008, has been permitted, surface preparation work has commenced and is expected to be spudded in early January 2021.  It will be drilled to a depth of 1,000m into the producing Moftinu structure and is expected to intersect three proven gas-bearing sand formations and two additional untested sand formations.  Upon success, the Moftinu-1008 will be tied into the Moftinu gas plant through a 1.5 km flowline for processing and sale.

The Company expects the second planned well to be drilled into the Sancrai structure directly to the south of the Moftinu field.  The previously completed Santau 3D seismic programme, conducted in 2013, highlighted the prospectivity of this structure.  Reprocessing of legacy 2D lines over the remaining area of the structure has demonstrated structural closure with AVO processing showing bright amplitudes consistent with a gas-bearing reservoir.  This well is expected to be drilled to 1,600m.  The spud date has not yet been established but it is expected to be in mid-2021.

Satu Mare Concession

The Satu Mare Concession (729,000 gross acres, Serinus deemed 100% WI) is one of the largest exploration blocks in Romania, lying on a prolific oil and gas trend in the Eastern Pannonian Basin. Satu Mare possesses a wealth of different plays that are actively producing along the same trend, including: shallow amplitude-supported gas reservoirs; conventional siliciclastic oil reservoirs; and fractured-basement oil and gas reservoirs. The Moftinu gas field (discovered by Serinus in 2014 ) was brought onto production in April 2019.

The Satu Mare concession is on trend with numerous commercial oil and gas fields. There are four areas of interest for future exploration and development, prioritized as follows: (1) the Berveni AOI, which possesses near-term exploration and development potential from shallow amplitude-supported gas plays; (2) the Santau-Madaras AOI, which represents near- to medium-term exploration potential in stratigraphic and structural traps with previously uncommercialized oil discoveries; (3) the Nusfalau AOI, which is a long-term exploration opportunity for large accumulations of stratigraphically trapped oil, similar to Suplacu de Barcau (162 MM BOE recoverable); and (4) the Babesti AOI, which is a long-term exploration opportunity for large gas accumulations in deep stratigraphic and structural traps.

KeyFacts Energy: Serinus Energy Romania country profile