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Southern Energy Corp. Announces Closing of Synergistic Asset Acquisition to Consolidate the Gwinville Field and Restricted Share Award Grant
CALGARY, AB / ACCESSWIRE / June 6, 2023 / Southern Energy Corp. (" Southern" or the " Company" ...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Closing of Synergistic Asset Acquisition to Consolidate the Gwinville Field and Restricted Share Award GrantCALGARY, AB / ACCESSWIRE / June 6, 2023 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU) (AIM:SOUC)(OTCQX:SOUTF) announces the closing of its acquisition of the remaining producing acreage in the Gwinville Field (the \"Assets\") in Jefferson Davis County, Mississippi from PetroTX Energy, LLC for a cash purchase price of $3.2 million (the \"Transaction\") that was previously announced May 23, 2023. Ian Atkinson, President and CEO of Southern, commented:\"We are very pleased to close this highly accretive acquisition. Our team has already begun optimizing the newly consolidated assets including through marketing opportunities, with additional volumes and access to the Florida Gas Transmission sales point, which is currently receiving a strong premium to NYMEX Henry Hub, and the rationalisation of operating costs. We will continue to achieve synergies through the further reduction of operating costs and through additional marketing opportunities. This Transaction demonstrates our ability to execute high value growth opportunities at all stages in the commodity cycle and we will look to build on this through organic development of the Gwinville area in the future.\"Details of the TransactionThe Assets are currently producing approximately 400 boe/d (99% natural gas) of high working interest production at less than 8% projected annual decline from over 8,500 acres of held-by-production acreage and include significant redevelopment opportunities in the Selma Chalk formation.The Company anticipates that the Asset's operating cost savings of more than 30% will be realized almost immediately, primarily driven by the consolidation of infrastructure, staff, and services in the Gwinville Field. The Transaction is consistent with the Company's strategy to consolidate stable, low decline, cash flowing assets that have been historically under-capitalized at highly attractive and accretive metrics.Transaction Highlights [1]:PDP PV10 value of $7.7 million, including operations synergies, representing a PDP PV34 valuation or a nearly 60% discount to PDP PV10This includes expected operational synergies with a PV10 value of more than $5 millionNext twelve months cash flow of $0.9 million, re...