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Southern Energy Corp. Announces Execution of a Purchase and Sale Agreement in Respect of a Synergistic ~ 400 Boe/D Asset Acquisition To Consolidate the Gwinville Field
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE ...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Execution of a Purchase and Sale Agreement in Respect of a Synergistic ~ 400 Boe/D Asset Acquisition To Consolidate the Gwinville FieldTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (REGULATION 596/2014/EU) AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.CALGARY, AB / ACCESSWIRE / May 23, 2023 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC)(OTCQX:SOUTF) is pleased to announce that it has entered into a definitive agreement with PetroTX Energy, LLC (\"PetroTX\") to acquire the remaining producing acreage in the Gwinville Field not already owned by the Company (the \"Assets\"), in Jefferson Davis County, Mississippi for a cash purchase price of $3.2 million (the \"Transaction\"). The 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 recently initiated a field redevelopment program in Gwinville by employing modern horizontal drilling and multi-stage stimulation techniques on 10 operated wells drilled to date. The Assets are expected to increase well inventory in Gwinville by as much as 20%. The Transaction will allow Southern to design the surface and bottomhole field development plan more efficiently and cost-effectively.The operational synergies that are expected to be realized by integrating the Assets with the Company's existing operations are alone significant enough for the Company to achieve strong financial returns on the Transaction, before any incremental cash flow from the Assets. The Company anticipates that the Asset's operating cost savings of more than 30% are expected to be realized almost immediately after completing the Transaction, 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...