Business
Southern Energy Corp. Provides Corporate Update and Confirms Response to COVID-19
Southern Energy Corp. Provides Corporate Update and Confirms Response to COVID-19 ...
About this update from Southern Energy Corp.
[{"type":"text","content":"\n\n\n\nSouthern Energy Corp. Provides Corporate Update and Confirms Response to COVID-19\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 26, 2020\n\n\n\nCALGARY, March 26, 2020 /CNW/ - Southern Energy Corp. (\"Southern\" or the \"Company\") (SOU: TSXV) provides a corporate update in response to recent market volatility caused by the COVID-19 pandemic and continued commodity price weakness.  Maintaining the strength of our balance sheet remains a top priority following the sudden decline in oil prices associated with recent global events.\nSouthern is pleased to confirm that in the interests of managing risk through an uncertain environment, the Company has secured fixed price hedges on production of 6,000 Mcf per day of natural gas at an average price of US$2.55 per Mcf and 75 barrels (\"bbl\") of oil per day at an average price of US$55.65 per bbl through December 31, 2020.  With these hedges, Southern has approximately 45% of its current production volumes hedged.  In addition to these 2020 hedge positions, close to 35% of Southern's budgeted natural gas production is hedged at an average price of US$2.45/Mcf through 2021, positioning the Company to withstand further commodity price volatility.\nConsistent with Southern's business strategy, the Company continues to examine opportunities for potential accretive acquisition targets.  Southern believes that pursuing acquisition targets offers superior rates of return in the current commodity price environment versus drilling.  \nThe situation around the COVID-19 virus continues to evolve. We are focused on protecting the health and safety of our personnel while striving for business continuity. We have implemented several measures to foster resilience through these unpredictable times, including a work-from-home program. In keeping with Southern's commitment to financial discipline, cost control and long-term sustainability, we have proactively reduced corporate salaries for all employees by 20% in response to COVID-19 and weakened commodity prices.\nSouther...