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Southern Energy Corp V.SOU

Alternate Symbol(s):  SOUTF

Southern Energy Corp. is a Canada-based natural gas exploration and production company. The Company has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. It has three assets in the Mississippi Interior Salt Basin (MISB), which include the Gwinville, Mechanicsburg, and Mount Olive East fields. It operates and owns a working interest in over 12,000 held by the production acres of land in the Gwinville field. It operates and owns a working interest in approximately 12,450 held by the production acres of land in the Gwinville field. The Company operates and owns a working interest in over 3,400 held by production acres of land in the Mechanicsburg field. It owns and operates production from a number of other fields in the MISB within 40 miles of Gwinville, including Greens Creek and Williamsburg South gas fields, along with minor oil production from the Magee field.


TSXV:SOU - Post by User

Post by nozzpackon Jun 28, 2022 7:05pm
225 Views
Post# 34789013

Gwinville Horizontals Cost $8.9 million US

Gwinville Horizontals Cost $8.9 million US

So, about $3 million US per well.

We just raised $30 million US which should,if entirely used to drill more Gwinville Horizontals, be capable of drilling another 10 wells or so , excluding the added cash from ongoing increases in Production.

In. Addition we have  7,240,000 Performance Warrants which become exercisable as to onethird upon the Market Price equaling or exceeding CAD$1.20, an additional onethird upon the Market Price equaling or exceeding CAD$1.35 and a final one third upon the Market Price equaling or exceeding CAD$1.50. 

That will raise another $10 million or so.
However, with all that cash it seems more likely that they will make one or two bolt on acquisitions that could boost production ( perhaps oil ) by 2000 barrels or so.

So there is a great incentive for management to run the share price upwards, so that those warrants get into the money..

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