TIDMSOUC
RNS Number : 2061V
Southern Energy Corp.
10 December 2021
SOUTHERN ENERGY CORP. ANNOUNCES
OPERATIONS UPDATE & SHARE CONSOLIDATION
Calgary, Alberta - December 10, 2021 - Southern Energy Corp.
("Southern" or the "Company") (SOU: TSXV) (AIM: SOUC), a
U.S.-focused, growth-oriented natural gas producer, is pleased to
announce an update with respect to drilling and operations, and
that it will be proceeding with the consolidation of the common
shares of the Company (the "Common Shares") previously approved by
shareholders of the Company on July 7, 2021.
Drilling and Operations Update
Southern Energy Operating LLC, an operating subsidiary of
Southern, has contracted Energy Drilling Company's Rig #15 (the "
Rig ") for the upcoming drilling program at its Gwinville asset in
central Mississippi. Southern has received drilling permits for
three horizontal wells (GH 19-3 No. 2, GH 19-3 No. 3, and GH 19-3
No. 4) targeting natural gas in the Selma Chalk Formation which
will be drilled from a single surface pad location. The Rig is
expected to move to location in late December 2021 after finishing
the well it is currently drilling for another operator.
Ian Atkinson, President & Chief Executive Officer,
commented
"We are delighted to initiate the Gwinville drilling program
prior to year-end and to partner with Energy Drilling Company from
Natchez, Mississippi, who have successfully drilled similar
horizontal Selma Chalk wells in the past. We expect the results of
this drilling to have a meaningful impact on the Company as we
bring on the new production volumes and incremental cash flow prior
to the end of Q1 2022. The Gwinville 19-3 surface pad is ready for
the drilling rig and its location within Company-owned
infrastructure allows us to bring on new production from these
wells onstream quickly. This is the beginning of what we believe
will be long-term growth at Gwinville providing value for our
investors."
Common Share Consolidation
At the annual general and special meeting of shareholders of the
Company held on July 7, 2021 (the "Meeting"), a special resolution
was passed authorizing and approving the directors of Southern to
consolidate the Common Shares. On December 9, 2021, the Company's
board of directors approved the consolidation of the Common Shares
on the basis of one post-consolidation Common Share for every eight
pre-consolidation Common Shares (the "Consolidation"). The board of
directors intends to effect the Consolidation to increase the
Company's flexibility and competitiveness in the marketplace and
make the Company's securities more attractive to a wider audience
of potential investors, thereby resulting in a more efficient
market for its Common Shares.
The Consolidation will be effective upon the filing of the
Articles of Amendment for the Company, and remains subject to the
approval of the TSX Venture Exchange (the "TSX-V"). Trading of the
Common Shares on a post-Consolidation basis on the TSX-V and AIM is
expected to commence on or about December 22, 2021. The record date
for the Consolidation will take place on the close of business of
the last trading day immediately prior to the date on which the
post-Consolidation Common Shares commence trading on the TSX-V.
The 616,901,068 Common Shares currently issued and outstanding
will be reduced to approximately 77,122,634 Common Shares on a
post-Consolidation basis. No fractional shares will be issued. Any
fractional interest in Common Shares that is less than 0.5 of a
Common Share resulting from the Consolidation will be rounded down
to the nearest whole Common Share and any fractional interest in
Common Shares that is equal to or greater than 0.5 of a Common
Share will be rounded up to the nearest whole Common Share.
As a result of the Consolidation, there will be certain
proportional adjustments to outstanding options and warrants to
acquire Common Shares to preserve the rights of holders of such
securities to the relevant proportion of the Company's Common
Shares post-Consolidation.
Letters of transmittal will be mailed to registered shareholders
and registered shareholders will be required to deposit their share
certificate(s), together with the duly completed letter of
transmittal, with Odyssey Trust Company, the Company's registrar
and transfer agent. Non-registered shareholders holding Common
Share through an intermediary (a securities broker, dealer, bank or
financial institution) should be aware that the intermediary may
have different procedures for processing the Consolidation than
those that will be put in place by the Company for registered
shareholders. If shareholders hold their Common Shares through an
intermediary and they have questions in this regard, they are
encouraged to contact their intermediaries.
For more information on the Consolidation, shareholders are
encouraged to refer to the management information circular of the
Company dated June 16, 2021, which is available on Southern's SEDAR
profile at www.sedar.com .
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
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.
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 Consolidation,
statements concerning the drilling of three horizontal wells in the
Selma Chalk Formation, and the timing and success of such wells.
The forward-looking statements contained in this press release are
based on certain key expectations and assumptions made by Southern,
including the timing of the receipt of the required regulatory and
third-party approvals relating to the Consolidation, the success of
Southern's planned drilling operations, production and timing of
the Selma Chalk wells, and expected benefits from the drilling of
such rigs.
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 the Company 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 trading of the Common Shares on a post-Consolidation basis may
not take effect when expected, the Company's ability to obtain and
renew all relevant licenses and permits, the success of the
Company's drilling operations, and the Company's ability to
complete its drilling objectives in the timeframe stated above.
Other risks faced by the Company are set out in more detail in
Southern's Annual Information Form for the year ended December 31,
2020, which is 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.
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.
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 Union
(Withdrawal) Act 2018.
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END
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