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  • Southern Energy Corp. (SOU) proposes a prospectus offering and placing of new common shares to raise aggregate gross proceeds of US$30.0 million (C$38.9 million)
  • The underwritten bought-deal prospectus offering will be for 26,060,000 million common shares at an issue price of C$0.87 each for gross proceeds of C$22.7 million
  • The placing of shares is for 18,692,661 million common shares at an offering price of C$0.87 each, for gross proceeds of C$16.2 million)
  • The company plans to use the net proceeds of the offering for capital expenditures relating to extending and accelerating the planned drilling programme at Gwinville
  • Three of the horizontal wells from the Gwinville 19-3 padsite are now flowing to sales at highly restricted rates
  • Southern Energy Corp. is a natural gas exploration and production company
  • Southern Energy Corp. was down 3.636 per cent, trading at $1.06 at 2:20 PM ET

Southern Energy Corp. (SOU) has announced a proposed prospectus offering and placing of new common shares to raise gross proceeds of US$30.0 million.

One part of the offering is an underwritten bought-deal prospectus offering of 26,060,000 million common shares at an issue price of C$0.87 per prospectus share, for gross proceeds of C$22.7 million.

The other half is a concurrent placing of approximately 18,692,661 million common shares at an offering price of C$0.87 for aggregate gross proceeds of about US$12.5 million.

Southern Energy plans to use the net proceeds of the offering for capital expenditures relating to extending and accelerating the planned drilling programme at Gwinville and for general working capital purposes.

The company notes that all three of the horizontal wells from the Gwinville 19-3 padsite are now flowing to sales at highly restricted rates.

The pad site currently produces approximately 15.3 MMcf/d (2,550 boe/d) of natural gas, and all three wells are meeting the company’s early-time expectations for our Generation 3 completion design.

“With all three Gwinville Selma Chalk wells now on production, we have more than doubled corporate production, which illustrates the significant organic growth potential we can deliver to shareholders with our multi-year drilling inventory in Gwinville,” said Ian Atkinson, President and CEO of Southern.

“Following the encouraging test results of our ongoing operations at Gwinville, utilizing our improved Generation 3 completion design, we believe that this is an opportune moment to finance the business for further, operationally-driven growth through the Offering,” he added.

Southern Energy Corp. is a natural gas exploration and production company which focuses on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas.

Southern Energy Corp. was down 3.636 per cent, trading at $1.06 at 2:20 PM ET.

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