REG - Southern Energy Corp - SPUDDING OF THREE WELL DRILLING PROGRAM

Southern EnergyAnnouncement

27/01/2022 07:00

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RNS Number : 8270Z  Southern Energy Corp.  27 January 2022

 

SOUTHERN ENERGY CORP. ANNOUNCES

SPUDDING OF THREE WELL DRILLING PROGRAM

 

Calgary, Alberta - January 27, 2022 - Southern Energy Corp. ("Southern" or the
"Company") (SOU: TSXV) (AIM:SOUC) announces the spudding of its three Selma
Chalk horizontal wells in the Gwinville field targeting natural gas. The three
wells will be drilled from the same surface pad site and batch drilled for
operational and capital efficiencies. Subject to successful completion, first
production from the wells is expected in April 2022. The Company has posted a
short video under the Presentations and Events heading on batch drilling
available on its website at www.southernenergycorp.com
(http://www.southernenergycorp.com) .

 

Ian Atkinson, President and CEO of Southern, commented:

 

"We are delighted to report that the team has commenced operations on the
Gwinville Selma Chalk horizontal well program. These wells will have a short
payback and are strategically located in proximity to the Henry Hub terminal
which attracts premium regional gas pricing. The Gwinville program is expected
to have an immediate positive impact for the Company and provide additional
near-term cash flow to the business during a period of strong commodity
prices, and we look forward to updating shareholders as the program
progresses."

Credit Facility Update

Southern entered into a First Amendment of its US$8.5 million senior secured
term loan extending the US$3.0 million Tranche B maturity to April 30, 2022,
to further support the Gwinville program. The Company has US$2.5 million
available under the Tranche B portion of the credit facility.

About Southern Energy Corp.

Southern Energy Corp. is a natural gas exploration and production company.
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.

For further information, please contact:

 

 Southern Energy Corp.

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

 Calvin Yau (VP Finance and CFO)                            +1 587 287 5402

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

 James Spinney / James Bellman

 Hannam & Partners - Joint Broker                           +44 (0) 20 7907 8500

 Samuel Merlin / Ernest Bell

 Canaccord Genuity - Joint Broker                           +44 (0) 20 7523 8000

 Henry Fitzgerald-O'Connor / James Asensio

 Camarco

 James Crothers, Billy Clegg, Daniel Sherwen                +44 (0) 20 3757 4980

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European (Withdrawal) Act 2018 (as amended).

 

Forward-Looking Information

Certain information included in this press release 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 press release may include, but is not
limited to, statements concerning the Company's business strategy, objectives,
strength and focus; the Company's capital program for 2022; drilling,
completions and other activities and the anticipated costs, timing and results
of such activities; the ability of the Company to achieve drilling success
consistent with management's expectations; anticipated future production,
revenue, cash flow and ability to receive premium regional gas pricing. The
forward-looking statements contained in this press release 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 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, prevailing weather conditions,
prevailing legislation affecting the oil and gas industry, commodity prices,
price volatility and the actual prices received for the Company's products,
royalty regimes and exchange rates, the application of regulatory and
licensing requirements, the availability of capital, labour and services and
the creditworthiness of industry partners. 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: risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production); continuing
negative effects of the COVID-19 pandemic on general market conditions and
commodity prices; continuing destabilizing action from OPEC+ members causing
further decline in oil prices; the uncertainty of reserve estimates; the
uncertainty of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks, especially given public
health concerns arising from the COVID-19 pandemic; constraint in the
availability of services; commodity price and exchange rate fluctuations;
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. Other risks faced by the Company are set out in more
detail in Southern's most recent annual information form and management's
discussion and analysis, which are available under the Company's SEDAR profile
at www.sedar.com (http://www.sedar.com) .

The forward-looking information contained in this press release 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 press
release is expressly qualified by this cautionary statement.

This press release contains future-oriented financial information and
financial outlook information (collectively, "FOFI") about the prospective
results of the Company's operations, production, revenue, cash flow, well
payback, capital efficiencies and components thereof, which are subject to the
same assumptions, risk factors, limitations, and qualifications as set forth
in the above paragraphs. FOFI contained in this press release was approved by
management as of the date of this press release and was provided for the
purpose of providing further information about Southern's future business
operations. Southern disclaims any intention or obligation to update or revise
any FOFI contained in this press release, whether as a result of new
information, future events or otherwise, unless required pursuant to
applicable law. Readers are cautioned that the FOFI contained in this press
release should not be used for purposes other than for which it is disclosed
herein.

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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