Serinus Energy finds potential oil when drilling for gas in Ukraine

Serinus Energy (SEN PW) (formerly Kulczyk Oil Ventures) via its 70%-owned Ukrainian subsidiary KUB-Gas, completed drilling on its NM-3 well in its North Makeyevskoye licence area, the company said on July 31. The NM-3 well reached a total depth of 2,426 meters, identifying 30 meters of Visean-aged potential oil play. The test recovered 0.5 cm of 37° API oil and minor amounts of natural gas. The well has been cased to allow for further testing.

KUB-Gas has yet to produce hydrocarbons from Visean-aged sandstone in Ukraine.

Roman Dmytrenko: NM-3 was the company’s third attempt in its North Makeyevskoye exploration license after the NM-1 and NM-2 exploration wells demonstrated no commercial gas flow. The fact that KUB-Gas recovered only “minor” amounts of gas from the new well casts a shadow of doubt over the area’s reserves potential. In case the new well is able to produce oil at a commercial rate after stimulation, KUB-Gas will need to adjust its gas-oriented infrastructure to deliver the oil to the market. Overall, we believe the company’s stock price surge yesterday was premature.