TIDMSOUC
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 .
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
+44 (0) 20 7409
Strand Hanson Limited - Nominated & Financial 3494
Adviser
James Spinney / James Bellman
+44 (0) 20 7907
Hannam & Partners - Joint Broker 8500
Samuel Merlin / Ernest Bell
Canaccord Genuity - Joint Broker +44 (0) 20 7523
Henry Fitzgerald-O'Connor / James Asensio 8000
Camarco +44 (0) 20 3757
James Crothers, Billy Clegg, Daniel Sherwen 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 .
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.
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Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
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END
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