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Southern Energy Corp. Announces Completion of Fundraising and Premium to NYMEX Pricing Contract
Defined terms used in this announcement have the same meaning as given to them in the Compan...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Completion of Fundraising and Premium to NYMEX Pricing ContractDefined terms used in this announcement have the same meaning as given to them in the Company's announcement released on June 23, 2022, unless otherwise defined herein.CALGARY, AB / ACCESSWIRE / July 7, 2022 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC), a U.S.-focused, growth-oriented natural gas producer, is pleased to announce the closing of its previously announced Offering to raise, in aggregate, gross proceeds of US$31.0 million through the issue of 46,371,927 new Common Shares. The Underwriters will not be exercising the over-allotment option granted to them in connection with the Offering.The net proceeds from the Offering will be used to accelerate the initiation of a continuous organic drilling programme at the Company's Gwinville field, as well as increase the Company's financial flexibility for potential acquisition opportunities.Ian Atkinson, President and CEO of Southern, commented:\"With our strengthened financial capability, we now look ahead to further exciting operational activity at Gwinville while also being capable of considering M&A opportunities in our core area of expertise from a position of strength. With a multi-year drilling inventory in Gwinville alone, we look forward to realising our forward growth potential of our goal to reach 25,000 boe/d; with more drilling anticipated to begin later this year.\"\"I would like to thank all of our new and existing shareholders for their support throughout this process as well as for their continued engagement in our Company.\"Financial UpdateOn June 27, 2022, the Company entered into basis swaps covering just under 40% of our physical price exposure with a natural gas basis swap transaction to secure an average premium to NYMEX of $0.39 per MMBtu from July 1, 2022 to December 31, 2022. This opportunity exists due to increased natural gas demand in the southeast Gulf States where traditionally the pricing would range between NYMEX plus or minus $0.05 per MMBtu. Strong demand in our core area is further highlighted by spot basis where our natural gas is currently selling for a $3.40 per MMBtu premium to NYMEX. The Company continues to monitor these premium prices and is prepared to hedge additional basis exposure at these elevated bas...