Serinus Energy Inc., 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.
