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Southern Energy Corp. Announces Operational Update
SOUTHERN ENERGY CORP. ANNOUNCES A 73% INCREASE IN 2P RESERVES AT YEAR END 2021, UPDATE ON GW...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Operational UpdateSOUTHERN ENERGY CORP. ANNOUNCES A 73% INCREASE IN 2P RESERVES AT YEAR END 2021, UPDATE ON GWINVILLE DRILLING PROGRAM AND NON-CORE ASSET DISPOSITIONCALGARY, AB / ACCESSWIRE / March 2, 2022 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC) is pleased to announce selected highlights of Southern's year end independent oil and gas reserves evaluation as of December 31, 2021 (the \"NSAI Report\"), and provide an update on the Company's three well drilling program at the Gwinville field and a non-core asset cash disposition.The NSAI Report was prepared by Southern's independent qualified reserves evaluator, Netherland, Sewell and Associates, Inc. (\"NSAI\"). All currency amounts are in United States dollars (unless otherwise stated) and comparisons refer to December 31, 2020. The Company anticipates announcing its fourth quarter and audited year end 2021 financial results and filing an annual information form (\"AIF\") for the year ended December 31, 2021, in April 2022.Highlights:• Relative to year-end 2020, the NSAI Report states• an increase in proved developed producing (\"PDP\") reserves by 9% to 5.7 MMboe,• consistent total proved (\"1P\") reserves at 10.5 MMboe and• an increase in total proved plus probable (\"2P\") reserves by 73% to 20.2 MMboe in 2021;• a PDP reserve life index (\"RLI\") of 9 years and 15 year RLI for 2P reserves• Additional drilling locations identified at Gwinville, based on previous Selma Chalk horizontal drilling successes, which could add material levels of production;• Before-tax net present value (\"NPV\") of reserves, discounted at 10% (\"NPV10\"), is $32.4 million on a PDP basis, $53.5 million on a 1P basis and $88.3 million on a 2P basis evaluated using the average forecast pricing of four independent reserve evaluators as at January 2022• Material progression of before tax NPV-10 per share to CAD$0.53/share, CAD$0.88/share, and CAD$1.45/share for PDP, 1P, and 2P categories;• The ongoing three well drilling program at Gwinville proceeding on schedule and on budget, with completion operations expected to begin in early April 2022• Disposition of two non-core oil properties for $1.3 million, net of closing adjustments• Aggregate production from the ...