REG - Southern Energy Corp - COMPLETION OF US$5 MILLION EQUITY FINANCING-+9

Southern EnergyAnnouncement

09/11/2023 14:15

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RNS Number : 9876S  Southern Energy Corp.  09 November 2023

SOUTHERN ENERGY CORP. ANNOUNCES

COMPLETION OF US$5 MILLION EQUITY FINANCING

 

Calgary, Alberta - November 9, 2023 - Southern Energy Corp. ("Southern" or the
"Company") (TSXV:SOU) (AIM:SOUC) (OTCQX:SOUTF), a U.S.-focused,
growth-oriented natural gas producer, is pleased to announce that it has
closed its previously announced equity financing for aggregate gross proceeds
of US$5 million (approximately £4.1 million, CAD$6.9 million) through the
issue of 26,630,000 new Common Shares at a price of C$0.26 or 15.5 pence per
Common Share. Defined terms used in this announcement have the same meaning
given to them as defined in the Company's announcement released on 1 November
2023 unless otherwise defined herein.

 

The equity financing comprised of US$2.2 million via a Prospectus Offering of
10,712,387 Common Shares, US$2.8 million via a Placing of 15,853,097 Common
Shares and US$0.01 million via a direct subscription with the Company for
64,516 Common Shares. The net proceeds of the Fundraising will be used by the
Company to accelerate the completion of its four drilled and uncompleted
wells, drilled as part of its Q1 2023 drilling campaign on its Gwinville
acreage.

 

Admission and Total Voting Rights

 

The new Common Shares issued pursuant to the Fundraising were credited as
fully paid, rank pari passu in all respects with the existing Common Shares
and were admitted to trading on AIM at 8.00 a.m. (GMT) today ("Admission").

 

Following Admission of the Common Shares issued pursuant to the financing, the
total number of Common Shares in the Company in issue is 165,718,160. This
figure may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in the Company under the FCA's Disclosure Guidance
and Transparency Rules.

 

For further information, please contact:

 

 Southern Energy Corp.

 Ian Atkinson (President and CEO)                           +1 587 287 5401

 Calvin Yau (CFO)                                           +1 587 287 5402

 Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494

 James Spinney / James Bellman

 Stifel Nicolas Europe Limited - Joint Broker               +44 (0) 20 7710 7600

 Callum Stewart / Ashton Clanfield / Simon Mensley

 Tennyson Securities - Joint Broker                         +44 (0) 20 7186 9033

 Peter Krens / Pav Sanghera

 Camarco                                                    +44 (0) 20 3757 4980

 Owen Roberts, Billy Clegg, Hugo Liddy

About Southern Energy Corp.

Southern Energy Corp. is a natural gas exploration and production company
characterized by a stable, low-decline production base, a significant low-risk
drilling inventory and strategic access to premium commodity pricing in North
America. Southern has a primary focus on acquiring and developing conventional
natural gas and light oil resources in the southeast Gulf States of
Mississippi, Louisiana, and East Texas. Our management team has a long and
successful history working together and have created significant shareholder
value through accretive acquisitions, optimization of existing oil and natural
gas fields and the utilization of re-development strategies utilizing
horizontal drilling and multi-staged fracture completion techniques.

 

Forward Looking Statements

 

Certain information included in this announcement constitutes forward-looking
information under applicable securities legislation. Forward-looking
information typically contains statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", "project" or
similar words suggesting future outcomes or statements regarding an outlook.
Forward-looking information in this announcement may include, but is not
limited to, statements concerning the use of proceeds of the Offering, the
Company's business strategy, objectives, strength and focus and the Company's
capital program for the remainder of 2023.

 

The forward-looking statements contained in this announcement are based on
certain key expectations and assumptions made by Southern, including the
timing of and success of future drilling, development and completion
activities, the performance of existing wells, the performance of new wells,
the availability and performance of facilities and pipelines, the geological
characteristics of Southern's properties, the characteristics of its assets,
the successful application of drilling, completion and seismic technology,
benefits of current commodity pricing hedging arrangements, prevailing weather
conditions, prevailing legislation affecting the oil and gas industry,
commodity prices, royalty regimes and exchange rates, the application of
regulatory and licensing requirements, the availability of capital, labour and
services, the creditworthiness of industry partners and the ability to source
and complete asset acquisitions.

 

Although Southern believes that the expectations and assumptions on which the
forward- looking statements are based are reasonable, undue reliance should
not be placed on the forward-looking statements because Southern can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. These
include, but are not limited to, the risk that the Company may apply the
proceeds of the Offering differently than as stated herein depending on future
circumstances; risks associated with the oil and gas industry in general
(e.g., operational risks in development, exploration and production; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), constraint in the availability of services,  commodity
price and exchange rate fluctuations, geo-political risks, political and
economic instability abroad, wars (including Russia's military actions in
Ukraine and the Israel-Palestinian conflict), increased operating and capital
costs due to inflationary pressures, changes in legislation impacting the oil
and gas industry, adverse weather or break-up conditions and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. These and other
risks are set out in more detail in the Prospectus Supplement, the Base Shelf
Prospectus and Southern's most recent management's discussion and analysis and
annual information form, which are available under the Company's SEDAR+
profile at www.sedarplus.ca.

 

The forward-looking information contained in this announcement is made as of
the date hereof and Southern undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward-looking information contained in this
announcement is expressly qualified by this cautionary statement.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

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