Business
Southern Energy Corp. Announces 2023 Capital Budget and Gwinville Operational Update, Year End Reserves Update and Joint Broker Appointments
CALGARY, AB / ACCESSWIRE / March 29, 2023 / Southern Energy Corp. (" Southern " or the " Company...
About this update from Spartan Delta Corp
[{"type":"text","content":"Southern Energy Corp. Announces 2023 Capital Budget and Gwinville Operational Update, Year End Reserves Update and Joint Broker AppointmentsCALGARY, AB / ACCESSWIRE / March 29, 2023 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC)(OTCQX:SOUTF) is pleased to announce its:2022 Year End Reserves Upgrade:Highlights of the Company's year end independent oil and gas reserves evaluation as at December 31, 2022 (the \"NSAI Report\") include:an increase in proved developed producing (\"PDP\") reserves of 25% to 6.2 MMboean increase in total proved (\"1P\") reserves of 44% to 14.1 MMboean increase in total proved plus probable (\"2P\") reserves by 31% to 25.5 MMboe in 2022before-tax net present value (\"NPV\") of 2P reserves, discounted at 10% (\"NPV10\"), of $142.5 million (an increase of 61% on year end 2021)Gwinville Operational Update:The Company announces the completion of its current drilling campaign of seven horizontal wellsThrough technical improvements, Southern has reduced the average time from spud to total depth of its Gwinville wells from approximately 21 days to between 9-12 days and averaging 80-100% lateral placement in the high-graded porosity intervalCapital Budget Update:In response to the current low natural gas prices, Southern plans to moderate the Gwinville organic growth program from the planned capital budget of US$101.0 million announced in November 2022 to approximately US$55.0 millionUnder its revised capital plan, Southern will have drilled seven horizontal wells at the Gwinville asset, completed three wells and have four wells remain as drilled but uncompleted (\"DUCs\") to be brought on in the future once natural gas prices are more supportiveBroker Appointments:Stifel Nicolaus Europe Limited and Tennyson Securities have both been appointed as the Company's joint corporate brokers with immediate effect Ian Atkinson, President & Chief Executive Officer of Southern, commented:\"Although the drop in natural gas prices has brought us to the decision to moderate our Gwinville capital program, the overall impact of the applied learnings from the 2022 appraisal program have paid off and we are happy with the early results. In the current program we have drilled seven horizontal wells with longer laterals than the original appraisal wells in half the time on a per well basis and pr...