Business
Southern Energy Corp. Announces Operations Update & Share Consolidation
CALGARY, AB / ACCESSWIRE / December 10, 2021 / Southern Energy Corp. (" Southern " or the " ...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces Operations Update & Share ConsolidationCALGARY, AB / ACCESSWIRE / December 10, 2021 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC), a U.S.-focused, growth-oriented natural gas producer, is pleased to announce an update with respect to drilling and operations, and that it will be proceeding with the consolidation of the common shares of the Company (the \"Common Shares\") previously approved by shareholders of the Company on July 7, 2021.Drilling and Operations UpdateSouthern Energy Operating LLC, an operating subsidiary of Southern, has contracted Energy Drilling Company's Rig #15 (the \"Rig\") for the upcoming drilling program at its Gwinville asset in central Mississippi. Southern has received drilling permits for three horizontal wells (GH 19-3 No. 2, GH 19-3 No. 3, and GH 19-3 No. 4) targeting natural gas in the Selma Chalk Formation which will be drilled from a single surface pad location. The Rig is expected to move to location in late December 2021 after finishing the well it is currently drilling for another operator.Ian Atkinson, President & Chief Executive Officer, commented\"We are delighted to initiate the Gwinville drilling program prior to year-end and to partner with Energy Drilling Company from Natchez, Mississippi, who have successfully drilled similar horizontal Selma Chalk wells in the past. We expect the results of this drilling to have a meaningful impact on the Company as we bring on the new production volumes and incremental cash flow prior to the end of Q1 2022. The Gwinville 19-3 surface pad is ready for the drilling rig and its location within Company-owned infrastructure allows us to bring on new production from these wells onstream quickly. This is the beginning of what we believe will be long-term growth at Gwinville providing value for our investors.\"Common Share ConsolidationAt the annual general and special meeting of shareholders of the Company held on July 7, 2021 (the \"Meeting\"), a special resolution was passed authorizing and approving the directors of Southern to consolidate the Common Shares. On December 9, 2021, the Company's board of directors approved the consolidation of the Common Shares on the basis of one post-consolidation Common Share for every eight pre-consolidation Common Shares (the \"Consolidation\"). The bo...