12/09/2013 07:23 EST | Updated 02/08/2014 05:59 EST

Serinus Energy suspends drilling operations at well in Brunei, will cost $11.8M

CALGARY - Serinus Energy (TSX:SEN) says it is suspending operations at a well in Brunei after attempts to retrieve the bottom hole assembly stuck in the hole were unsuccessful.

The Calgary-based oil and gas company says it will incur an estimated $11.8 million in costs associated with the suspension.

Serinus began drilling the Luba well on Nov. 11, and had reached a depth of 1,720 metres when the bottom hole assembly became stuck. The company had originally planned on drilling to 3,327 metres.

It says it decided to stop operations because it's unclear how the part became lodged, and "cannot guarantee" of it not occurring again.

Serinus has exploration, production and development projects in Ukraine, Brunei, Tunisia, Romania and Syria.

The company is listed on both the Toronto Stock Exchange and the Warsaw Stock Exchange.

"While suspending the well was a very difficult decision, there are times to simply stop and re-evaluate when you have operational difficulties such as we've encountered this drilling campaign," said chief operating officer Jock Graham in a statement.