Serinus Business Model is low risk?18 May 2021 19:24
After the recent YouTube video Serinus may seem a high risk business. In Romania Serinus has a 15,000 mcf/d Gas compressor. Serinus attaches enough wells to run this plant at full capacity. It will attach a bit extra to keep the gas available always above 15,000 mcf/d. As these wells decline Serinus will attach new wells always keeping the Gas Plant at full capacity. For the next 10-20 years Serinus drills a new well and attaches it to the Gas plant. Disconnecting and capping off depleted wells. At maximum capacity and with Q1 realised gas prices annual revenue would have been $32 million. Gas prices are still recovering so pre-covid price of $7 mcf would give nearly $40 million. When Sancria is spudded Serinus will be utilising the Gas Plant at 100% and earning maximum revenue. The decline rate will mean that a new well will need adding Q4. Every 6/12 months Serinus keeps adding a new well. No debt with everything funded from revenue.
Tunisia, we are told is high risk. In reality it is not, Serinus has concessions for a few oil fields with no debt. It is generating and increasing revenue using its own cash with small enhancements. Rig work over, pumps. If Tunisia totally failed Serinus will just have a revenue drop. The Romanian Gas fields still means it is making a profit and earning money. Tunisia has tremendous potential but until the situation changes Sirenus will use cash funded enhancements only. Again no risk,
It is obvious that the guys now running Serinus know what they are doing. I also feel like someone has put Peter Jones in charge of a welk store. You know it will not stay like that.
The share price is crazy, This share is worth 6p minimum. When Sancria is spudded and the Gas Plant is at maximum capacity Serinus starts generating cash with Tunsia as the icing on top.
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