CALGARY, ALBERTA--(Marketwired - Feb. 1, 2016) - Serinus Energy Inc. (TSX:SEN)(WARSAW:SEN) ("Serinus", "SEN" or the "Company"), is pleased to announce that it has commenced the process of closing 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. Gastek LLC, a wholly owned subsidiary of Cub Energy Inc., has waived its right of first refusal to purchase Serinus' Ukraine interests.
Serinus is selling all of the 70% of the outstanding shares of KUB-Gas Holdings Limited ("KHL") currently 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.
Serinus will receive total cash consideration of $30 million plus working capital and inter-company adjustments. The first $13.5 million has been released from escrow, and the final closing is expected to occur on or before February 8, 2016, after which the remaining funds will be released. The Company intends to use the proceeds from the sale for repayment of corporate debt, and to help fund development of the Moftinu gas discovery in Romania.
Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Ukraine, Tunisia, and Romania.
For further information, please refer to the Serinus website (www.serinusenergy.com).
Translation: This news release has been translated into Polish from the English original.
Forward-looking Statements This release may contain forward-looking statements made as of the date of this announcement with respect to future activities that either are not or may not be historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof, any potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors that could impair or prevent the Company from completing the expected activities on its projects include that the Company's projects experience technical and mechanical problems, there are changes in product prices, failure to obtain regulatory approvals, the state of the national or international monetary, oil and gas, financial, political and economic markets in the jurisdictions where the Company operates and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties and actual results may vary materially from those expressed in the forward-looking statement. The Company undertakes no obligation to revise or update any forward-looking statements in this announcement to reflect events or circumstances after the date of this announcement, unless required by law.