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Bullboard - Stock Discussion Forum 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... see more

TSXV:SOU - Post Discussion

Southern Energy Corp > Gwinville Horizontals Cost $8.9 million US
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Post by nozzpack on Jun 28, 2022 7:05pm

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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