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Southern Energy Corp. Announces Initial Results of 7.7 MMcf/d from First Gwinville Selma Chalk Horizontal Well
Successful Initial Results from Generation 3 Well Design CALGARY, AB / ACCESSWIRE / June...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Initial Results of 7.7 MMcf/d from First Gwinville Selma Chalk Horizontal WellSuccessful Initial Results from Generation 3 Well DesignCALGARY, AB / ACCESSWIRE / June 8, 2022 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSX.V:SOU)(AIM:SOUC) is excited to announce successful early flowback results from the first well of the three-well horizontal padsite located in the Gwinville Field.HighlightsWell GH 19-3 #2 is flowing at an initial level of 7.7 MMcf/d (1,280 boe/d), at a highly restricted flowing pressure, exceeding the Company's modeled type curveAdditional volumes from GH 19-3 #2 have increased the Company's production approximately 60% to 3,175 boe/d, materially increasing gas sales as no test volumes are flaredThe Company remains largely unhedged, resulting in gas from GH 19-3 #2 being sold at current NYMEX gas pricesInitial results indicate that flowback performance using the Generation 3 completion design is far superior to any previous Selma Chalk wells in the areaFlowback results are expected from two recently completed Gwinville wells shortlyThe GH 19-3 #2 well was opened to flowback following the stimulation operation. After approximately one week of clean-up, the well is flowing at 7.7 MMcf/d (1,280 boe/d) at a highly restricted flowing pressure of 1,100 psig. Production from the well is flowing directly to sales creating significant additional cash flow for the Company. The well continues to produce over 2,000 bbl/d of load fluid, with approximately 24% recovered to date. Throughout the first week of production, as more load fluid is recovered, the well's gas rate has consistently increased day over day.Southern's Generation 3 completion design increased the stage count by over 275% and the proppant concentration by over 40% as compared to the most recent Selma Chalk horizontal wells completed in Mississippi between 2013 - 2015, and initial flowback performance suggests that the increased completion intensity is having a very positive result.With the additional volumes from the new well, Southern's current WI sales production has increased approximately 60% to 3,175 boe/d (96% gas). The additional natural gas production from the new well is unhedged and being sold at current NYMEX gas prices.Stimulation operations on the GH 19-3 #3 and #4 wells have also been completed, a...