CALGARY, AB, June 28, 2021 /CNW/ - Southern Energy
Corp. ("Southern" or the "Company") (TSXV: SOU)
announces that the Company has received an extraordinary resolution
from the holders (the "Debentureholders") of its outstanding
8% convertible unsecured subordinated debentures (the
"Debentures") approving certain amendments to the debenture
indenture entered into between the Company and Computershare Trust
Company of Canada (the
"Trustee") dated June 14, 2019
(the "Indenture Amendments"). The Indenture Amendments will:
(a) extend the maturity date of the Debentures by two years to
June 30, 2024; (b) decrease the
conversion price for the Debentures from $0.125 to $0.10;
and (c) allow the Company to satisfy its obligation to pay interest
on the Debentures by, among other things, delivering freely
tradeable common shares in the capital of the Company to the
Trustee for distribution directly to the Debentureholders as a
payment in-kind of accrued interest on the Debentures.
Southern intends to enter into a supplemental indenture (the
"Supplemental Indenture") with the Trustee to effect the
Indenture Amendments on June 30,
2021, subject to the approval of the TSX Venture Exchange. A
copy of the Supplemental Indenture will be filed under the
Company's profile on SEDAR at www.sedar.com.
About Southern Energy Corp.
Southern Energy Corp. is an oil and natural gas exploration and
production company. Southern 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. Our management team has a long and successful history
working together and have created significant shareholder value
through accretive acquisitions, optimization of existing oil and
natural gas fields and the utilization of re-development strategies
utilizing horizontal drilling and multi-staged fracture completion
techniques.
READER ADVISORY
Forward Looking Statements. Certain
information included in this press release constitutes
forward-looking information under applicable securities
legislation. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking information in this press release includes, but is
not limited to, statements concerning the Indenture Amendments,
including the execution of the Supplemental Indenture and the
approval of the TSX Venture Exchange. The forward-looking
statements contained in this press release are based on certain key
expectations and assumptions made by Southern, including receipt of
the required approvals from the TSX Venture Exchange. Although
Southern believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements
because Southern can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to: risks associated with the oil and
gas industry in general (e.g., operational risks in development,
exploration and production); continuing negative effects of the
COVID-19 pandemic on general market conditions and commodity
prices; the potential for required COVID-19 preventative measures
to delay resumption of deliveries on the Mechanicsburg gathering
system; continuing destabilizing action from OPEC+ members causing
further decline in oil prices; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and
environmental risks, especially given public health concerns
arising from the COVID-19 pandemic; constraint in the availability
of services; commodity price and exchange rate fluctuations;
changes in legislation impacting the oil and gas industry; adverse
weather or break-up conditions; and uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. Other risks faced by
the Company are set out in more detail in Southern's Annual
Information Form for the year ended December
31, 2020, which is available under the Company's SEDAR
profile at www.sedar.com. The forward-looking information
contained in this press release is made as of the date hereof and
Southern undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, unless required by
applicable securities laws. The forward-looking information
contained in this press release is expressly qualified by this
cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Southern Energy Corp.
