Serinus Energy plc recently released an operational update, reporting on the progress of the company’s various work programmes on its assets in Romania and Tunisia.
Daniel Slater, Analyst at Arden Partners noted that all of the work programs have made progress. These include ongoing well workovers in Tunisia, production drilling on Moftinu in Romania to begin in January, and planning for exploration drilling at Sancrai in Romania and installation of ESPs on Sabria in Tunisia as we move through 2021. These are all aimed at supporting and growing company production and cash flows.
The analyst expects Serinus’ work programs to support production and create overall growth going forward, driving higher cash flows which can then be redeployed into further asset work programs.
Asked about his view on the company as an investment, he said “Serinus Energy is well set to generate regular news flow from its work program, and that that work program should drive production and cash flow growth going forward.
The low onshore cost profile helps protect margins and boost returns, and the balance sheet is now transformed as a result of the recent equity raise and full debt retirement. The company should be in for a very busy 2021, the analyst pointed out.