REG - Southern Energy Corp - OPERATIONS UPDATE

Southern EnergyAnnouncement

14/05/2025 07:00

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RNS Number : 6101I  Southern Energy Corp.  14 May 2025

SOUTHERN ENERGY CORP. PROVIDES OPERATIONS UPDATE

 

Calgary, Alberta - May 14, 2025 - Southern Energy Corp. ("Southern" or the
"Company") (TSXV:SOU) (AIM:SOUC), an established producer with natural gas and
light oil assets in Mississippi, continues to progress its plans to complete
its first Gwinville drilled and uncompleted ("DUC") well and has finalized
procuring key services.  Field operations are scheduled to commence on the
13-13 #2 Lower Selma Chalk horizontal well in the next few weeks, and Southern
expects first production from the well during June 2025.  This will be the
Company's first of three planned DUC completions at Gwinville.

 

Unrelated to Southern's current growth plans at Gwinville, Southern is
involved in an ongoing dispute in which it is bringing a claim regarding what
it believes are excessive transportation fees being charged by a third party
midstream company associated with the Mechanicsburg and Green's Creek
fields.  On April 29, 2025, Southern was pleased to receive confirmation that
the pipelines subject to the dispute are regulated by the Federal Energy
Regulatory Commission ("FERC").  The third party made its initial response
filing to the regulator which includes setting maximum allowable
transportation rates, subject to FERC review and approval.

 

Southern will work closely with FERC staff to expedite the rate determination
process and, in parallel, will continue to engage with the pipeline operator
to pursue an agreement on an equitable fee structure.

 

In the interim, Southern has elected to voluntarily shut-in approximately 400
boepd of production from the Mechanicsburg and Greens Creek Fields to avoid
increasing the quantum of disputed fees.  This accounts for approximately 20%
of Southern's production on a volumetric basis, but only approximately 10% of
the Company's operating income from Q1 2025. This will not impact the rest of
Southern's operations or the proposed DUC completions in Gwinville.

 

For further information about Southern, please visit our website at
www.southernenergycorp.com (https://southernenergycorp.com/) or 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 Bellman / Rob Patrick / Edward Foulkes
 Tennyson Securities - Broker                               +44 (0) 20 7186 9033

 Peter Krens / Jason Woollard
 Camarco                                                    +44 (0) 20 3757 4980

   Owen Roberts / Fergus Young / Tomisin Ibikunle

 

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.

READER ADVISORY

Unit Cost Calculation. For the purpose of calculating unit costs, natural gas
volumes have been converted to a barrel of oil equivalent ("boe") using six
thousand cubic feet equal to one barrel unless otherwise stated. A boe
conversion ratio of 6:1 is based upon an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. This conversion conforms with National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities. Boe may be
misleading, particularly if used in isolation.

Forward Looking Statements. 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", "budget", "continue", "evaluate", "forecast", "may",
"will", "can", "target" "potential", "result", "could", "should" 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 capital program for the
remainder of 2025, including the completion of a DUC and the timing of
production in respect thereof, the Company's natural gas transmission rate
dispute with a third-party pipeline operator and the Company's actions pending
the resolution of such dispute. The forward-looking statements contained in
this press release are based on certain key expectations and assumptions made
by Southern. 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, including other risks are set out in Southern's MD&A and annual
information form for the year ended December 31, 2024, which are available on
the Company's website at www.southernenergycorp.com and filed under the
Company's profile on SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) .
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.

Neither the 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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