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Serinus Energy PLC Q3 2022 Results

28/11/2022 7:00am

UK Regulatory (RNS & others)


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Serinus Energy PLC

28 November 2022

28 November 2022

Press Release

Interim Results for the nine months ended 30 September 2022

Jersey, Channel Islands, 28 November 2022 - Serinus Energy plc ("Serinus" or the "Company") (AIM:SENX, WSE:SEN), is pleased to announce its interim results for the nine months ended 30 September 2022.

Financial

-- Revenue for the nine months ended 30 September 2022 was $41.8 million (30 September 2021 - $25.7 million)

-- During the period Moftinu Gas Plant surpassed produced revenues of $87.0 million since first gas in 2019

-- Net income for the nine months ended 30 September 2022 was $3.4 million (30 September 2021 - $0.8 million)

-- Funds from operations for the nine months ended 30 September 2022 were $ 11.1 million (30 September 2021 - $ 7.8 million)

-- EBITDA for the nine months ended 30 September 2022 was $11.4 million ( 30 September 2021 - $8.9 million)

-- Gross profit for the nine months ended 30 September 2022 was $11.8 million (30 September 2021 - $4.4 million)

-- The Company realised a net price of $162.18/boe for the nine months ended 30 September 2022 comprising:

o Realised oil price - $101.04/bbl

o Realised natural gas price - $36.66/Mcf

-- The Group's operating netback remained strong for the nine months ended 30 September 2022 and was $120.13/boe ( 30 September 2021 - $34.13/boe), comprising:

o Romania operating netback - $195.73/boe ( 30 September 2021 - $37.79/boe)

o Tunisia operating netback - $59.11/boe ( 30 September 2021 - $26.05/boe)

-- Capital expenditures of $8.6 million for the nine months ended 30 September 2022 ( 30 September 2021 - $9.3 million), comprising:

o Romania - $6.9 million

o Tunisia - $1.7 million

   --      Working capital surplus increased to $0.8 million (31 December 2021 - $0.6 million) 
   --      Cash balance as at 30 September 2022 was $8.8 million (31 December 2021 - $8.4 million) 

Operational

-- The Canar-1 well was drilled to a total depth of 1,570 metres, targeting three prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well. The Canar-1 well has been completed as a water disposal well and test injection is ongoing

-- The Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient estimated gas resources to justify proceeding with the testing and completion program for the well. The well is now suspended

-- Drilling operations on both the wells (Canar-1 and Moftinu Nord-1) were performed within budget and without incident

-- The Company has initiated a geological and geophysical review of the Satu Mare concession to high rank the management-estimated 181 million barrels of oil equivalent prospects

-- In Tunisia, production has remained stable in the first three quarters of 2022. All material and consumables for the artificial lift programme at the Sabria W-1 well have been received in-field and the Company is awaiting mobilisation of the rig. Having previously defaulted on the rig contract, La Compagnie Tunisienne de Forage ("CTF"), the Tunisia state-owned drilling company, has confirmed the availability of its CTF 004 rig to perform the workover and installation of artificial lift for the W-1 well in Sabria. The rig is currently being demobilised from another operator and is expected to be operational at the well site in December 2022. Workover and installation operations are expected to take 60 days to complete

   --      Workover at the CS-9 well at Chouech Es Saida was completed in August 2022 

-- Immediately following the completion of the W-1 workover and artificial lift installation, the CTF 004 rig will move to the Sabria N-2 well to perform a workover to recomplete the well

-- The Company anticipates, subject to partner approval, proceeding with the workover and installation of artificial lift on the WIN-12bis well in Sabria in 2023

   --      Production for the period averaged 938 boe/d, comprising: 

o Romania - 421 boe/d

o Tunisia - 517 boe/d

-- In August 2022, the Company performed a lifting of 50,344 bbls of Tunisian crude oil at a price of $99.51/bbl

About Serinus

Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

For further information, please refer to the Serinus website (www.serinusenergy.com) or contact the following:

 
 Serinus Energy plc 
  Jeffrey Auld, Chief Executive Officer 
  Andrew Fairclough, Chief Financial Officer 
  Calvin Brackman, Vice President, External 
  Relations & Strategy                            +4 4 204 541 7859 
 
 
   Shore Capital (Nominated Adviser & Joint 
   Broker) 
   Toby Gibbs 
   John More                                       +44 207 408 4090 
 A rden Partners plc (Joint Broker) 
  Ruari McGirr 
  Alexandra Campbell-Harris                        +44 207 614 5900 
 
 Camarco (Financial PR - London) 
  Owen Roberts 
  Phoebe Pugh                                      +44 203 781 8334 
 
 TBT i Wspólnicy (Financial PR - Warsaw) 
  Katarzyna Terej                                   +48 602 214 353 
 

Forward Looking Statement Disclaimer

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.

Translation : This news release has been translated into Polish from the English original.

Serinus Energy plc

Third Quarter Report and Accounts 2022

(US dollars)

Third quarter 2022 Highlights

Financial

-- Revenue for the nine months ended 30 September 2022 was $41.8 million (30 September 2021 - $25.7 million)

-- During the period Moftinu Gas Plant surpassed produced revenues of $87.0 million since first gas in 2019

-- Net income for the nine months ended 30 September 2022 was $3.4 million (30 September 2021 - $0.8 million)

-- Funds from operations for the nine months ended 30 September 2022 were $ 11.1 million (30 September 2021 - $ 7.8 million)

-- EBITDA for the nine months ended 30 September 2022 was $11.4 million ( 30 September 2021 - $8.9 million)

-- Gross profit for the nine months ended 30 September 2022 was $11.8 million (30 September 2021 - $4.4 million)

-- The Company realised a net price of $ 162.18 /boe for the nine months ended 30 September 2022 comprising:

   o   Realised oil price - $101.04/bbl 
   o   Realised natural gas price - $36.66/Mcf 

-- The Group's operating netback remained strong for the nine months ended 30 September 2022 and was $120.13/boe ( 30 September 2021 - $34.13/boe), comprising:

   o   Romania operating netback - $195.73/boe ( 30 September 2021 - $37.79/boe) 
   o   Tunisia operating netback - $59.11/boe ( 30 September 2021 - $26.05/boe) 

-- Capital expenditures of $8.6 million for the nine months ended 30 September 2022 ( 30 September 2021 - $9.3 million), comprising:

   o   Romania - $6.9 million 
   o   Tunisia - $1.7 million 
   --       Working capital surplus increased to $0.8 million (31 December 2021 - $0.6 million) 
   --       Cash balance as at 30 September 2022 was $8.8 million (31 December 2021 - $8.4 million) 

Operational

-- The Canar-1 well was drilled to a total depth of 1,570 metres, targeting three prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well. The Canar-1 well has been completed as a water disposal well and test injection is ongoing

-- The Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient estimated gas resources to justify proceeding with the testing and completion program for the well. The well is now suspended

-- Drilling operations on both the wells (Canar-1 and Moftinu Nord-1) were performed within budget and without incident

-- The Company has initiated a geological and geophysical review of the Satu Mare concession to high rank the management-estimated 181 million barrels of oil equivalent prospects

-- In Tunisia, production has remained stable in the first three quarters of 2022. All material and consumables for the artificial lift programme at the Sabria W-1 well have been received in-field and the Company is awaiting mobilisation of the rig. Having previously defaulted on the rig contract, La Compagnie Tunisienne de Forage ("CTF"), the Tunisia state-owned drilling company, has confirmed the availability of its CTF 004 rig to perform the workover and installation of artificial lift for the W-1 well in Sabria. The rig is currently being demobilised from another operator and is expected to be operational at the well site in December 2022. W orkover and installation operations are expected to take 60 days to complete

   --        Workover at the CS-9 well at Chouech Es Saida was completed in August 2022 

-- Immediately following the completion of the W-1 workover and artificial lift installation, the CTF 004 rig will move to the Sabria N-2 well to perform a workover to recomplete the well

-- The Company anticipates, subject to partner approval, proceeding with the workover and installation of artificial lift on the WIN-12bis well in Sabria in 2023

   --        Production for the period averaged 938 boe/d, comprising: 
   o   Romania - 421 boe/d 
   o   Tunisia - 517 boe/d 

-- In August 2022, the Company performed a lifting of 50,344 bbls of Tunisian crude oil at a price of $99.51/bbl

Operational UPDATE and Outlook

Serinus Energy plc and its subsidiaries ("Serinus", the "Company" or the "Group") is an oil and gas exploration, appraisal and development company. The Group is the operator of all its assets and has operations in two business units: Romania and Tunisia.

ROMANIA

The Group's Romanian operating subsidiary holds the licence to the Satu Mare concession area, covering approximately 3,000 km(2) in the north-west of Romania. The Moftinu Gas Development project began production in 2019. The development project includes the Moftinu gas plant, and currently operates four gas wells - Moftinu-1003, Moftinu-1004, Moftinu-1007 and Moftinu-1008 with a second compressor installed and commissioned on Moftinu-1007 in February 2022. During the nine months ended 30 September 2022, the Company's Romanian operations produced a total of 687 MMcf of gas and 527 barrels of condensate, equating to an average daily production of 421 boe/day. Production continues to reflect the natural decline profile of shallow gas fields. The installation of compression has stabilised production from those wells. The Company is reviewing the production performance versus the prognosed production as determined by the Company's technical staff and the Company's independent reserve engineers and is considering additional production wells on the Moftinu structure to maximise reservoir drainage.

The Company has completed drilling of two exploration wells in the period in Romania. The Canar-1 well was drilled to a total depth of 1,570 metres, targeting three prospective hydrocarbon zones. The Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones. Well logging and gas show readings for both wells determined that the prospective zones in each well had indications of residual gas but they did not contain sufficient gas resources to justify proceeding with the testing and completion programs for the wells. Each of the prospects exhibit several AVO anomalies of a type that strongly indicates the presence of gas. However, other formation characteristics may also contribute to such signals, including low gas saturations. Seal risk is a component of the ongoing bloc-wide review of exploration potential in the block.

The Canar-1 well underwent initial tests to assess its suitability for disposal of produced water from the Moftinu field and has subsequently been completed to enable longer term water injection which has the potential for substantial savings in operating cost.

Serinus has also initiated a block-wide geological and geophysical study to verify and enhance our understanding of the exploration portfolio beyond the Moftinu area. Management has estimated the exploration potential of the block to be 181 million barrels of oil equivalent, on a mean unrisked recoverable resource. These additional studies will look to high rank future exploration prospects.

Gas pricing in Romania remained at high levels through the first nine months of 2022, with an average realised price of $40.54/Mcf. Gas prices on the Romanian Commodity Exchange continued to remain strong over the third quarter of 2022.

Tunisia

The Company currently operates two concession areas within Tunisia, Sabria and Chouech Es Saida, which have discovered oil and gas reserves and are currently producing. The Ech Chouech licence, which can only be produced through the Chouech Es Saida facilities, expired in May 2022. The Company has followed the regulatory process to seek an extension of this licence with the Tunisian authorities, but no progress has been forthcoming to date. The largest asset is the Sabria field ; a large, conventional oilfield which the Company's independent reservoir engineers have estimated to have approximately 445 million barrels of oil-originally-in-place. Of this oil-in-place only 1.0% has been produced to date due to a low rate of development on the field.

The Sabria W-1 wellsite has been prepared for the intervention which will install the first submersible pump for the Artificial Lift programme in the Sabria field. All materials required for this intervention are in our in-country warehouse. The Company signed a rig contract for the CTF 006 rig and was awaiting mobilization from another operator and the workover and pump installation at the Sabria W-1 well due to commence as soon as the rig was available. CTF notified the Company that it was unable to deliver the CTF 006 rig as contractually agreed. The Company worked with CTF, its partner, ETAP, and the Ministry of Energy to procure an alternative rig as per the terms of the previously agreed CTF rig contract. CTF has now agreed to provide the CTF 004 rig to perform the well workovers. This is currently being demobilised from another operator and will begin workover operations in December 2022. The completion of the planned operations is expected to take 60 days.

Upon completion of the workover and pump installation at Sabria W-1, the rig will move to the Sabria N-2 well to perform a workover to recomplete the well. This well was drilled in 1980 but was damaged during completion and, although in proximity to producing wells, was not able to flow oil to surface due to damage during completion. The workover program will re-complete the well and remove any wellbore restrictions.

All long-lead items for the Sabria field artificial lift programme have been delivered to the Sabria field.

Production remained stable in the third quarter of 2022 at the Chouech Es Saida field as a result of the Company's programme of pump installation and maintenance.

Financial Review

Liquidity, Debt and Capital Resources

During the nine months ended 30 September 2022, the Company invested a total of $8.6 million (2021 - $9.3 million) on capital expenditures before working capital adjustments. In Romania, the Group invested $6.9 million (2021 - $8.5 million) on the drilling campaign related to the exploration wells. In Tunisia, the Company invested $1.6 million (2021 - $0.8 million) for workovers on wells.

The Company's funds from operations for the nine months ended 30 September 2022 were $11.1 million (2021 - $7.8 million). Including changes in non-cash working capital, the cash flow generated from operating activities in 2022 was $8.7 million (2021 - $10.5 million). The Company continues to be in a strong position to expand and continue growing production within our existing resource base. The Company is debt-free and has adequate resources available to deploy capital into both operating segments to deliver growth and shareholder returns.

 
 ($000)                 30 September   31 December 
 Working Capital                2022          2021 
---------------------  -------------  ------------ 
 Current assets               20,043        17,625 
 Current liabilities        (19,279)      (16,994) 
---------------------  -------------  ------------ 
 Working Capital                 764           631 
---------------------  -------------  ------------ 
 

Working capital at 30 September 2022 is relatively stable at $0.8 million (31 December 2021 - $0.6 million).

Current assets as at 30 September 2022 were $20.0 million (31 December 2021 - $17.6 million), an increase of $2.4 million. Current assets consist of:

   --      Cash and cash equivalents of $8.8 million (31 December 2021 - $8.4 million) 
   --      Restricted cash of $1.1 million (31 December 2021 - $1.1 million) 
   --      Trade and other receivables of $9.6 million (31 December 2021 - $7.4 million) 
   --      Product inventory of $0.5 million (31 December 2021 - $0.6 million) 

Current liabilities as at 30 September 2022 were $19.3 million (31 December 2021 - $17.0 million), an increase of $2.3 million. Current liabilities consist of:

   --      Accounts payable of $11.2 million (31 December 2021 - $9.7 million) 
   --      Decommissioning provision of $6.6 million (31 December 2021 - $6.6 million) 

o Brunei - $1.6 million (31 December 2021 - $1.6 million)

o Canada - $1.0 million (31 December 2021 - $1.0 million) which is offset by restricted cash in the amount of $1.1 million (31 December 2021 - $1.1 million) in current assets

o Romania - $nil million (31 December 2021 - $0.3 million)

o Tunisia - $4.0 million (31 December 2021 - $3.7 million)

   --      Income taxes payable of $1.3 million (31 December 2021 - $0.5 million) 
   --      Current portion of lease obligations of $0.2 million (31 December 2021 - $0.2 million) 

Non-current assets

Property, plant and equipment ("PP&E") decreased to $64.3 million (31 December 2021 - $71.7 million), as a result of depletion expense in the period of $4.7 million, a change in decommissioning estimates of $4.6 million and a foreign currency impact of $3.0 million. The decrease from depletion, decommissioning estimates and foreign currency was partially offset by capital expenditures in PP&E of $4.8 million. Exploration and evaluation assets ("E&E") increased to $8.5 million (31 December 2021 - $5.0 million), primarily due to expenditures incurred on the 2D seismic acquisition programme and exploration drilling programme in Romania . Right-of-use assets increased to $0.5 million (31 December 2021 - $0.3 million) due to expenditures incurred on corporate assets.

Financial Review - NINE months ended 30 SEPTEMBER 2022

Funds from Operations

The Group uses funds from operations as a key performance indicator to measure the ability of the Group to generate cash from operations to fund future exploration and development activities. The following table is a reconciliation of funds from operations to cash flow from operating activities:

 
                                          Nine months ended 30 
                                                     September 
 ($000)                                                 2022        2021 
------------------------------------  ----------------------  ---------- 
 Cash flow from operations                             8,713      10,464 
 Changes in non-cash working capital                   2,342     (2,636) 
------------------------------------  ----------------------  ---------- 
 Funds from operations                                11,055       7,828 
------------------------------------  ----------------------  ---------- 
 Funds from operations per share                        0.10        0.01 
------------------------------------  ----------------------  ---------- 
 
 

Romania generated funds from operations of $8.4 million (2021 - $5.8 million) and Tunisia generated $7.1 million (2021 - $1.8 million). Funds used at the Corporate level were $4.4 million (2021 - $2.3 million) resulting in net funds from operations of $11.1 million (2021 - $5.3 million). Changes in non-cash working capital increased by $4.9 million to $2.3 million (2021 - $2.6 million).

Production

 
 Nine months ended 30 
  September 2022           Tunisia   Romania   Group      % 
------------------------  --------  --------  ------  ----- 
 Crude oil (bbl/d)             451         -     451    48% 
 Natural gas (Mcf/d)           395     2,518   2,913    52% 
 Condensate (bbl/d)              -         2       2     0% 
------------------------  --------  --------  ------  ----- 
 Total (boe/d)                 517       422     938   100% 
------------------------  --------  --------  ------  ----- 
 
 
   Nine months ended 30 
   September 2021 
 Crude oil (bbl/d)             465         -     465    25% 
 Natural gas (Mcf/d)           618     7,392   8,010    74% 
 Condensate (bbl/d)              -        10      10     1% 
------------------------  --------  --------  ------  ----- 
 Total (boe/d)                 568     1,242   1,810   100% 
------------------------  --------  --------  ------  ----- 
 

During the nine months ended 30 September 2022 production volumes decreased by 872 boe/d (48%) to 938 boe/d against the comparative period (2021 - 1,810 boe/d).

Romania's production volumes decreased by 821 boe/d (66%) to 422 boe/d against the comparative period (2021 - 1,242 boe/d). Production continues to reflect the natural decline profile of shallow gas fields. In February 2022, a second compressor was installed and commissioned on Moftinu-1007. The installation of compression has stabilised production from those wells with compression.

Tunisia's production volumes decreased by 51 boe/d (9%) to 517 boe/d against the comparative period (2021 - 568 boe/d). Production remains stable during the nine months of 2022 as a result of the Company's programme of pump installation and maintenance. The CTF-004 rig is being demobilised from another operator and workover operations are due to start in December 2022. Ongoing workover programmes continue in the Chouech Es Saida field to enhance production.

Oil and Gas Revenue

 
 ($000) 
 Nine months ended 30 September 
  2022                              Tunisia     Romania      Group        % 
 Oil revenue                         12,569           -     12,569      30% 
 Natural gas revenue                  1,280      27,888     29,168      69% 
 Condensate revenue                       -          57         57       1% 
---------------------------------  --------  ----------  ---------  ------- 
 Total revenue                       13,849      27,945     41,794     100% 
---------------------------------  --------  ----------  ---------  ------- 
 
 
 
 
 Nine months ended 30 September 
  2021                                  Tunisia   Romania         Group        % 
-------------------------------------  --------  --------  ------------  ------- 
 Oil revenue                              7,473         -         7,473      29% 
 Natural gas revenue                      1,482    16,581        18,063      70% 
 Condensate revenue                           -       162           162       1% 
-------------------------------------  --------  --------  ------------  ------- 
 Total revenue                            8,955    16,743        25,698     100% 
-------------------------------------  --------  --------  ------------  ------- 
  Realised Price [1] 
 Nine months ended 30 September 2022              Tunisia       Romania    Group 
-----------------------------------------------  --------  ------------  ------- 
 Oil ($/bbl)                                       101.04             -   101.04 
 Natural gas ($/Mcf)                                11.88         40.54    36.66 
 Condensate ($/bbl)                                     -         81.33    81.33 
-----------------------------------------------  --------  ------------  ------- 
 Average realised price ($/boe)                     97.29        242.25   162.18 
-----------------------------------------------  --------  ------------  ------- 
 
 Nine months ended 30 September 2021 
-----------------------------------------------  --------  ------------  ------- 
 Oil ($/bbl)                                        61.69             -    61.69 
 Natural gas ($/Mcf)                                 8.79          8.22     8.26 
 Condensate ($/bbl)                                     -         57.72    57.72 
-----------------------------------------------  --------  ------------  ------- 
 Average realised price ($/boe)                     60.01         49.37    52.62 
-----------------------------------------------  --------  ------------  ------- 
 
 

During the nine months ended 30 September 2022 revenue increased by $16.1 million (63%) to $41.8 million (2021 - $25.7 million) as the Group saw the average realised price increase by $109.56/boe (208%) to $162.18/boe (2021 - $52.62/boe).

The Group's average realised oil price increased by $39.35/bbl (64%) to $101.04/bbl (2021 - $$61.69/bbl), and average realised natural gas prices increased by $28.40/Mcf (344%) to $36.66/Mcf (2021 - $$8.26/Mcf).

Under the terms of the Sabria Concession Agreement the Group is required to sell 20% of its annual crude oil production from the Sabria concession into the local market, which is sold at an approximate 10% discount to the price obtained on its other crude sales. The remaining crude oil production was sold to the international market.

Royalties

 
                            Nine months ended 
                                 30 September 
 ($000)                        2022      2021 
-----------------------  ----------  -------- 
 Tunisia                      1,714     1,198 
 Romania                        943     1,282 
-----------------------  ----------  -------- 
 Total                        2,657     2,480 
 Total ($/boe)                10.31      5.08 
 Tunisia (% of revenue)      12.4 %     13.4% 
 Romania (% of revenue)       3.5 %      7.7% 
-----------------------  ----------  -------- 
 Total (% of revenue)         6.4 %      9.7% 
-----------------------  ----------  -------- 
 

During the nine months ended 30 September 2022 royalties increased by $ 0.2 million (7%) to $2.7 million (2021- $ 2.5 million) while the Group's average royalty rate decreased to 6.4 % (2021 - 9.7 %).

In Romania, the royalty rate dropped to 3.5% in the nine months ended 2022 (2021 - 7.7%) as a result of a decrease in the level of production. In addition to the decrease in production, the Company saw an increase in the realised price, which exceeded the royalty reference price in 2022, compared to 2021 where the royalty reference price exceeded the realised price. The Company incurred a 3.5% royalty for gas (2021 - 7.5%) and 3.5% royalty for condensate (2021 - 3.5%). The royalty is calculated using a reference price that is set by the Romanian authorities and not the realised price to the Company. Romanian royalty rates vary based on the level of production during the quarter. Natural gas royalty rates range from 3.5% to 13.0% and condensate royalty rates range from 3.5% to 13.5%.

In Tunisia, royalties vary based on individual concession agreements. Sabria royalty rates vary depending on a calculation of cumulative revenues, net of taxes, as compared to cumulative investment in the concession, known as the "R-factor". As the R-factor increases, so does the royalty percentage to a maximum rate of 15%.

During the nine months of 2022, the royalty rate remained unchanged in Sabria at 10% for oil and 8% for gas. Chouech Es Saida and Ech Chouech royalty rates are flat at 15% for both oil and gas.

Production Expenses

 
                                        Nine months ended 
                                             30 September 
 ($000)                                   2022       2021 
-----------------------------------  ---------  --------- 
 Tunisia                                 3,720      3,870 
 Romania                                 4,424      2,647 
 Canada                                     40         34 
-----------------------------------  ---------  --------- 
 Group                                   8,184      6,551 
 
 Tunisia production expense ($/boe)      26.14      25.93 
 Romania production expense ($/boe)      38.35       7.80 
-----------------------------------  ---------  --------- 
 Total production expense ($/boe)        31.74      13.41 
-----------------------------------  ---------  --------- 
 

During the nine months ended 30 September 2022 production expenses increased by $ 1.6 million ( 25 %) to $8.2 million (2021 - $6.6 million). Per unit production expenses increased by $ 18.33 /boe ( 137 %) to $ 31.74 (2021 - $ 13.41/boe ).

Tunisia's production expenses decreased by $ 0.2 million ( 4 %) to $ 3.7 million (2021 - $3.9 million), however per unit production expenses increased to $26.14/boe (2021 - $25.93/boe) due to lower production. The decrease in production expenses is due to a lower number of workover programs initiated in the period and the inclusion of historic mining taxes of $0.3 million related to Sanrhar and Zinnia in the comparative period in 2021.

Romania's overall operating costs increased by $ 1.9 million ( 67 %) to $ 4.5 million (2021 - $ 2.6 million), with per unit production expenses increasing by $ 30.55 /boe ( 392 %) to $ 38.35 /boe (2021 - $ 7.80 /boe) due to lower production. The increase in production costs is primarily a result of higher water disposal costs and the impact of inflation in Romania.

Canada production expenses relate to the Sturgeon Lake assets, which are not producing and are incurring minimal operating costs to maintain the property.

Operating Netback

Serinus uses operating netback as a key performance indicator to assist management in understanding Serinus' profitability relative to current market conditions and as an analytical tool to benchmark changes in operational performance against prior periods. Operating netback consists of petroleum and natural gas revenues less direct costs consisting of royalties and production expenses. Netback is not a standard measure under IFRS and therefore may not be comparable to similar measures reported by other entities .

 
 ($/boe) 
 Nine months ended 30 September 
  2022                              Tunisia   Romania     Group 
 Sales volume (boe/d)                   521       422       944 
 Realised price                       97.29    242.25    162.18 
 Royalties                          (12.04)    (8.17)   (10.31) 
 Production expense                 (26.14)   (38.35)   (31.74) 
---------------------------------  --------  --------  -------- 
 Operating netback                    59.11    195.73    120.13 
---------------------------------  --------  --------  -------- 
 
 Nine months ended 30 September 
  2021                              Tunisia   Romania     Group 
 Sales volume (boe/d)                   568     1,242     1,810 
 Realised price                       60.01     49.37     52.62 
 Royalties                           (8.03)    (3.78)    (5.08) 
 Production expense                 (25.93)    (7.80)   (13.41) 
---------------------------------  --------  --------  -------- 
 Operating netback                    26.05     37.79     34.13 
---------------------------------  --------  --------  -------- 
 
 

During the nine months ended 30 September 2022 the Group's operating netback increased by $ 86.00/ boe ( 252% ) to $ 120.13 /boe (2021 - $ 34.13 /boe). The increase is due to increased realised prices, partially offset by higher royalties and higher production expenses.

The Company also generated a gross profit of $ 11.8 million (2021 - $ 4.4 million), largely due to a significant increase in the Company's netbacks as well as a decrease to depletion as described below.

Earnings Before Interest, Taxes, Depreciation and Amortization ("ebitda")

Serinus uses EBITDA as a key performance indicator to assist management in understanding Serinus' cash profitability. EBITDA is computed as net profit/loss and adding back interest, taxation, depletion and depreciation, and amortisation expense. EBITDA is not a standard measure under IFRS and therefore may not be comparable to similar measures reported by other entities. During the nine months ended 30 September 2022 , the Group's EBITDA increased by $ 2.5 million to $ 11.4 million (2021 - $ 8.9 million).

 
                                Nine months ended 30 
                                           September 
 ($000)                              2022       2021 
---------------------------  ------------  --------- 
 Net income                         3,367        836 
 Interest expense                      45         51 
 Depletion and amortization         4,924      8,066 
 Tax expense                        3,079       (54) 
---------------------------  ------------  --------- 
 EBITDA                            11,415      8,899 
---------------------------  ------------  --------- 
 

Windfall Tax

 
                                        Nine months ended 30 
                                                   September 
 ($000)                                      2022       2021 
-----------------------------------  ------------  --------- 
 Windfall tax                              14,233      4,190 
 Windfall tax ($/Mcf - Romania gas)         20.68       2.08 
 Windfall tax ($/boe - Romania gas)        124.05      12.46 
 

During the nine months ended 30 September 2022 windfall taxes in Romania increased by $10.0 million (246%) to $14.2 million (2021 - $4.2 million). This increase is directly related to higher realised gas prices in Romania which increased from $8.22/Mcf to $40.54/Mcf.

In Romania, the Group is subject to a windfall tax on its natural gas production which is applied to supplemental income once natural gas prices exceed 47.53 RON/Mwh. This supplemental income is taxed at a rate of 60% between 47.53 RON/Mwh and 85.00 RON/Mwh and at a rate of 80% above 85.00 RON/Mwh. Expenses deductible in the calculation of the windfall tax include royalties and capital expenditures limited to 30% of the supplemental income below the 85.00 RON/Mwh threshold.

Depletion and Depreciation

 
                     Nine months ended 
                          30 September 
 ($000)                2022       2021 
----------------  ---------  --------- 
 Tunisia              2,067      2,801 
 Romania              2,763      5,153 
 Corporate               94        112 
----------------  ---------  --------- 
 Total                4,924      8,066 
 
 Tunisia ($/boe)      14.52      18.77 
 Romania ($/boe)      23.95      15.19 
----------------  ---------  --------- 
 Total ($/boe)        19.11      16.52 
----------------  ---------  --------- 
 

During the nine months ended 30 September 2022 depletion and depreciation expense decreased by $3.2 million (39%) to $4.9 million (2021 - $8.1 million), primarily due to lower production during the period. Per boe, depletion and depreciation expense increased by $2.59/boe (16%) to $19.11/boe (2021 - $16.52/boe), primarily due to lower reserves in the current period.

General and Administrative ("G&A") Expense

 
                         Nine months ended 30 
                                    September 
 ($000)                      2022        2021 
--------------------  -----------  ---------- 
 G&A expense                4,050       3,180 
 G&A expense ($/boe)        15.72        6.49 
 

During the nine months ended 30 September 2022 G&A costs increased by $0.9 million (27%) to $4.1 million (2021 - $ 3.2 million), being an increase of $9.23/boe (140%) to $15.72/boe (2021 - $6.49/boe) due to higher compliance expenses and impact of foreign exchange rates in the current period.

Share-Based Payment

 
                                 Nine months ended 
                                      30 September 
 ($000)                            2022       2021 
----------------------------  ---------  --------- 
 Share-based payment                 59        119 
 Share-based payment ($/boe)       0.23       0.24 
 

During the nine months ended 30 September 2022 share-based compensation decreased to $0.06 million (2021 - $0.1 million) due to lower stock options granted in the preceding 12 months.

Net Finance Expense

 
                                            Nine months ended 
                                                 30 September 
 ($000)                                        2022      2021 
---------------------------------------  ----------  -------- 
 Interest on leases                              28        41 
 Accretion on decommissioning provision         753       255 
 Foreign exchange and other                     532        16 
---------------------------------------  ----------  -------- 
                                              1,313       312 
---------------------------------------  ----------  -------- 
 

During the nine months ended 30 September 2022 net finance expenses increased by $1.0 million (321%) to $1.3 million (2021 - $0.3 million). This increase is mainly due to foreign exchange losses due to the strengthening of the US dollar, as well as higher accretion on decommissioning provision which increased due to the higher discount rates applied to the calculation during the period.

Taxation

During the nine months ended 30 September 2022 income tax expense was $3.4 million (2021 - $0.1 million). The increase in the tax expense is directly related to higher taxable income in Tunisia during the period.

Share Data

As at the date of issuing this report, the following are the Directors stock options outstanding, LTIP awards, and shares owned up to the date of this report.

 
                             Share Options   LTIP Awards    Shares 
 Executive Directors: 
 Jeffrey Auld                    2,580,000     1,656,355   488,875 
 Andrew Fairclough                 175,000       903,631   108,053 
 
 Non-Executive Directors: 
 Jim Causgrove                      10,000             -    40,000 
 Lukasz Redziniak                        -             -    72,000 
 Jon Kempster [2]                        -             -    60,261 
--------------------------  --------------  ------------  -------- 
                                 2,765,000     2,559,986   769,189 
--------------------------  --------------  ------------  -------- 
 

As of the date of issuing this report, management is aware of the following shareholders holding more than 3% of the ordinary shares of the Group, as reported by the shareholders to the Group: Richard Sneller 11.59%, CRUX Asset Management 8.41%, Quercus TFI SA 7.26%, Canccord (Marlborough Fund Managers) 4.19%, and Spreadex LTD 3.02%.

The Directors are responsible for the maintenance and integrity of the corporate and financial information on the Group's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Foreign Currency Translation

Foreign currency translation occurs from the revaluation from fluctuations in the foreign exchange rates in entities with a different functional currency than the reporting currency (USD). The revaluation of the condensed consolidated interim statement of financial position to the period-end rates resulted in a loss of $3.4 million (2021 - loss of $1.8 million) through Other comprehensive loss.

Going Concern

The Group's business activities, together with the factors likely to affect its future development and performance are set out in the Operational Update and Outlook. The financial position of the Group is described in these condensed consolidated interim financial statements.

The Directors have given careful consideration to the appropriateness of the going concern assumption, including cashflow forecasts through the going concern period and beyond, planned capital expenditure and the principal risks and uncertainties faced by the Group. This assessment also considered various downside scenarios including oil and gas commodity prices and production rates. Following this review, the Directors are satisfied that the Group has sufficient resources to operate and meet its commitments as they come due in the normal course of business for at least 12 months from the date of these condensed consolidated interim financial statements. Accordingly, the Directors continue to adopt the going concern basis for the preparation of these condensed consolidated interim financial statements.

Declarations of the Board of Directors Concerning Accounting Policies

The Board of Directors of the Company confirms that, to the best of their knowledge, the condensed consolidated interim financial statements together with comparative figures have been prepared in accordance with applicable accounting standards and give a true and fair view of the state of affairs and the financial result of the Group for the period ended 30 September 2022.

The Financial Review in this report gives a true and fair view of the situation on the reporting date and of the developments during the period ended 30 September 2022 and include a description of the major risks and uncertainties.

Serinus Energy plc

Consolidated Interim Statement of Comprehensive Loss

(US$ 000s, except per share amounts)

 
                                                                  Nine months ended 30 
                                                                             September 
------------------------------------------------------  -----  ----------------------- 
                                                         Note         2022        2021 
------------------------------------------------------  -----  -----------  ---------- 
 
 Revenue                                                            41,794      25,698 
------------------------------------------------------  -----  -----------  ---------- 
 
 Cost of sales 
  Royalties                                                       (2,657 )     (2,480) 
  Windfall tax                                                    (14,223)     (4,190) 
  Production expenses                                              (8,184)     (6,551) 
  Depletion and depreciation                                       (4,924)     (8,066) 
 Total cost of sales                                              (29,988)    (21,287) 
------------------------------------------------------  -----  -----------  ---------- 
 
 Gross profit                                                       11,806       4,411 
 
 Administrative expenses                                           (4,050)     (3,180) 
 Share-based payment expense                                          (59)       (119) 
 Total administrative expenses                                     (4,109)     (3,299) 
 
 Decommissioning provision recovery (expense)                           62        (18) 
 Operating income                                                    7,759       1,094 
 
 Finance expense                                                   (1,313)       (312) 
------------------------------------------------------  -----  -----------  ---------- 
 Net income before tax                                               6,446         782 
 
 Tax (expense) recovery                                            (3,079)          54 
------------------------------------------------------  -----  -----------  ---------- 
 Income after taxation attributable to equity 
  owners of the parent                                               3,367         836 
 
 Other comprehensive loss 
 Other comprehensive loss to be classified 
  to profit and loss in subsequent periods: 
  Foreign currency translation adjustment                          (3,441)     (1,828) 
------------------------------------------------------  -----  -----------  ---------- 
 Total comprehensive loss for the period attributable 
  to equity owners of the parent                                      (74)       (992) 
------------------------------------------------------  -----  -----------  ---------- 
 
 Earnings per share: 
 Basic                                                    4           0.03        0.00 
 Diluted                                                  4           0.03        0.00 
------------------------------------------------------  -----  -----------  ---------- 
 

The accompanying notes on pages 15 to 16 form part of the condensed consolidated interim financial statements

Serinus Energy plc

Condensed Consolidated Interim Statement of Financial Position

(US$ 000s, except per share amounts)

 
                                                   30 September    31 December 
 As at                                                     2022           2021 
----------------------------------------------   --------------  ------------- 
 
 Non-current assets 
 Property, plant and equipment                           64,322         71,747 
 Exploration and evaluation assets                        8,453          5,042 
 Right-of-use assets                                        483            370 
-----------------------------------------------  --------------  ------------- 
 Total non-current assets                                73,258         77,159 
-----------------------------------------------  --------------  ------------- 
 
 Current assets 
 Restricted cash                                          1,064          1,144 
 Trade and other receivables                              9,669          7,396 
 Product inventory                                          525            656 
 Cash and cash equivalents                                8,785          8,429 
-----------------------------------------------  --------------  ------------- 
 Total current assets                                    20,043         17,625 
-----------------------------------------------  --------------  ------------- 
 Total assets                                            93,301         94,784 
-----------------------------------------------  --------------  ------------- 
 
 Equity 
 Share capital                                          401,426        401,426 
 Share-based payment reserve                             25,546         25,487 
 Treasury shares                                          (323)          (121) 
 Accumulated deficit                                  (384,619)      (387,986) 
 Cumulative translation reserve                         (4,815)        (1,374) 
 Total equity                                            37,215         37,432 
-----------------------------------------------  --------------  ------------- 
 
 Liabilities 
 Non-current liabilities 
 Decommissioning provision                               23,866         28,232 
 Deferred tax liability                                  11,416         10,516 
 Lease liabilities                                          167            252 
 Other provisions                                         1,358          1,358 
-----------------------------------------------  --------------  ------------- 
 Total non-current liabilities                           36,802         40,358 
-----------------------------------------------  --------------  ------------- 
 
 Current liabilities 
 Current portion of decommissioning provision             6,572          6,636 
 Current portion of lease liabilities                       167            193 
 Accounts payable and accrued liabilities                12,540         10,165 
-----------------------------------------------  --------------  ------------- 
 Total current liabilities                               19,279         16,994 
-----------------------------------------------  --------------  ------------- 
 Total liabilities                                       56,086         57,352 
-----------------------------------------------  --------------  ------------- 
 Total liabilities and equity                            93,301         94,784 
-----------------------------------------------  --------------  ------------- 
 

The accompanying notes on pages 15 to 16 form part of the condensed consolidated interim financial statements

Serinus Energy plc

Condensed Consolidated Interim Statement of Changes in Shareholder's Equity

(US$ 000s, except per share amounts)

 
                                            Share-based                                     Accumulated 
                                    Share       payment   Treasury   Accumulated    other comprehensive 
                                  capital       reserve     Shares       deficit                   loss     Total 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Balance at 31 December 
  2020                            401,426        25,274          -     (396,410)                  1,089    31,379 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Loss for the period                    -             -          -         (660)                      -     (660) 
 Other comprehensive loss 
  for the period                        -             -          -             -                (1,076)   (1,076) 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Total comprehensive loss 
  for the period                        -             -          -     (397,070)                     13    29,643 
 Transactions with equity 
  owners 
 Share-based payment expense            -           104          -             -                      -       104 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Balance at 30 September 
  2021                            401,426        25,378          -     (397,070)                     13    29,747 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 
 Balance at 31 December 
  2021                            401,426        25,487      (121)     (387,986)                (1,374)    37,432 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Comprehensive income for 
  the period                            -             -          -         3,367                      -     3,367 
 Other comprehensive loss 
  for the period                        -             -          -             -                (3,441)   (3,441) 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Total comprehensive (income) 
  loss for the period                   -             -          -         3,367                (3,441)      (74) 
 Transactions with equity 
  owners 
 Share-based payment expense            -            59          -             -                      -        59 
 Shares purchased to be 
  held in Treasury                                           (202)             -                      -     (202) 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 Balance at 30 September 
  2022                            401,426        25,546      (323)     (384,619)                (4,815)    37,215 
------------------------------  ---------  ------------  ---------  ------------  ---------------------  -------- 
 

The accompanying notes on pages 15 to 16 form part of the condensed consolidated interim financial statements

Serinus Energy plc

Condensed Consolidated Interim Statement of Cash Flows

(US$ 000s, except per share amounts)

 
                                                               Nine months ended 30 
                                                                          September 
                                                      Note          2022       2021 
---------------------------------------------------  -----  ------------  --------- 
 
 Operating activities 
 Income for the period                                             3,367        836 
 Items not involving cash: 
    Depletion and depreciation                                     4,924      8,066 
    Share-based payment expense                                       59        119 
    Tax expense                                                    3,079       (54) 
    Accretion expense on decommissioning provision                   753        255 
    Change in other provisions                                         -         70 
    Foreign exchange loss (gain)                                      68       (23) 
    Other income                                                     (3)        (5) 
 Decommissioning provision (recovery) expense                       (62)         18 
 Income taxes paid                                               (1,130)    (1,132) 
 
 Funds from operations                                            11,055        7,828 
 Changes in non-cash working capital                   5         (2,342)        2,636 
---------------------------------------------------  -----  ------------  ----------- 
 Cashflows from operating activities                               8,713       10,464 
---------------------------------------------------  -----  ------------  ----------- 
 
 Financing activities 
 Lease payments                                                    (355)      (217) 
 Shares purchased to be held in treasury                           (202)          - 
 Cashflows used in financing activities                            (557)      (217) 
---------------------------------------------------  -----  ------------  --------- 
 
 Investing activities 
 Capital expenditures                                  5         (7,476)    (9,865) 
 Proceeds on disposition of property, plant 
  and equipment                                                        -          8 
---------------------------------------------------  -----  ------------  --------- 
 Cashflows used in investing activities                          (7,476)    (9,857) 
---------------------------------------------------  -----  ------------  --------- 
 
 Impact of foreign currency translation on 
  cash                                                             (324)       (23) 
---------------------------------------------------  -----  ------------  --------- 
 
 Change in cash and cash equivalents                                 356        367 
 
 Cash and cash equivalents, beginning of period                    8,429      6,002 
---------------------------------------------------  -----  ------------  --------- 
 Cash and cash equivalents, end of period                          8,785      6,369 
---------------------------------------------------  -----  ------------  --------- 
 

The accompanying notes on pages 15 to 16 form part of the condensed consolidated interim financial statements

   1.   General information 

Serinus Energy plc and its subsidiaries are principally engaged in the exploration and development of oil and gas properties in Tunisia and Romania. Serinus is incorporated under the Companies (Jersey) Law 1991. The Group's head office and registered office is located at 2(nd) Floor, The Le Gallais Building, 54 Bath Street, St. Helier, Jersey, JE1 1FW.

Serinus is a publicly listed company whose ordinary shares are traded under the symbol "SENX" on AIM and "SEN" on the WSE.

   2.   Basis of presentation 

The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted by the United Kingdom applied in accordance with the provisions of the Companies (Jersey) Law 1991.

These condensed consolidated interim financial statements are expressed in U.S. dollars unless otherwise indicated. All references to US$ are to U.S. dollars. All financial information is rounded to the nearest thousands, except per share amounts and when otherwise indicated.

Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the condensed consolidated interim financial statements are described in Note 5 to the consolidated financial statements for the year ended 31 December 2021. There has been no change in these areas during the nine months ended 30 September 2022.

Going concern

The Group's business activities, together with the factors likely to affect its future development and performance are set out in the Operational Update and Outlook. The financial position of the Group is described in these condensed consolidated interim financial statements and in the Report from the CFO.

The Directors have given careful consideration to the appropriateness of the going concern assumption, including cashflow forecasts through the going concern period and beyond, planned capital expenditure and the principal risks and uncertainties faced by the Group. This assessment also considered various downside scenarios including oil and gas commodity prices and production rates. Following this review, the Directors are satisfied that the Group has sufficient resources to operate and meet its commitments as they come due in the normal course of business for at least 12 months from the date of these condensed consolidated interim financial statements. Accordingly, the Directors continue to adopt the going concern basis for the preparation of these condensed consolidated interim financial statements.

   3.   Significant accounting policies 

The condensed consolidated interim financial statements have been prepared following the same basis of measurement, accounting policies and methods of computation as described in the notes to the consolidated financial statements for the year ended 31 December 2021. There has been no change to the accounting policies or the estimates and judgements which management are required to make in the period. The business is not subject to seasonal variations. Information in relation to the operating segments and material primary statement movements can be found within the management discussion at the front of this report.

   4.   Earnings per share 
 
                                                   Period ended 30 
                                                         September 
 ($000's, except per share amounts)             2022          2021 
--------------------------------------  ------------  ------------ 
 Income for the period                         3,367           836 
 Weighted average shares outstanding: 
 Basic                                   114,714,372   116,316,068 
 Diluted                                 114,714,372   117,445,549 
--------------------------------------  ------------  ------------ 
 
 Income per share - Basic and diluted           0.03          0.00 
--------------------------------------  ------------  ------------ 
 

In determining diluted net loss per share, the Group assumes that the proceeds received from the exercise of "in-the-money" stock options are used to repurchase ordinary shares at the average market price. In calculating the weighted-average number of diluted ordinary shares outstanding for the period ended 30 September 2022, the Group excluded 3.4 million stock options (2021 - 3.2 million) as they were non-dilutive.

   5.   Supplemental cash flow disclosure 
 
                                              Period ended 30 
                                                    September 
                                                 2022    2021 
-------------------------------------------  --------  ------ 
 Cash provided by (used in): 
 Trade and other receivables                  (3,085)   2,466 
 Product inventory                               (19)       - 
 Accounts payable and accrued liabilities         764     154 
 Restricted cash                                  (2)      16 
-------------------------------------------  --------  ------ 
 Changes in non-cash working capital from 
 operating activities                         (2,342)   2,636 
-------------------------------------------  --------  ------ 
 
 

The following table reconciles capital expenditures to the cash flow statement:

 
                                               Period ended 30 
                                                     September 
                                                  2022    2021 
------------------------------------------  ----------  ------ 
 PP&E additions                                  4,402   4,604 
 E&E additions                                   4,221   4,706 
------------------------------------------  ----------  ------ 
 Total capital additions                         8,623   9,310 
 Changes in non-cash working capital from 
  investing activities                         (1,147)     555 
------------------------------------------  ----------  ------ 
 Total capital expenditures                      7,476   9,865 
------------------------------------------  ----------  ------ 
 
   6.   Prior year comparatives 

The prior year comparatives have been reclassified to align with the current year disclosure. These reclassifications are immaterial.

   7.   Subsequent event 

On 5 October 2022, the Company announced that it had the Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones. Well logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well. Drilling operations were performed without incident.

[1] For the nine months ended 30 September 2022, Tunisia realised oil prices are calculated using oil sales volumes of 456 bbl/d (31 December 2021 - 461 bbl/d). As at 30 September 2022 there were 9,117 bbls of oil in inventory (31 December 2021 - 12,229 bbls).

[2] Shares held by Catherine Kempster (the spouse of Jon Kempster)

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END

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November 28, 2022 02:00 ET (07:00 GMT)

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