CALGARY,
AB, Nov. 9, 2023 /CNW/ - Southern Energy
Corp. ("Southern" or the "Company") (TSXV: SOU)
(AIM: SOUC) (OTCQX: SOUTF), a U.S.-focused, growth-oriented natural
gas producer, is pleased to announce that it has closed its
previously announced equity financing for aggregate gross proceeds
of US$5 million (approximately £4.1
million, CAD$6.9 million) through the
issue of 26,630,000 new Common Shares at a price of C$0.26 or 15.5
pence per Common Share. Defined terms used in this
announcement have the same meaning given to them as defined in the
Company's announcement released on 1
November 2023 unless otherwise defined herein.
The equity financing comprised of US$2.2 million via a Prospectus Offering of
10,712,387 Common Shares, US$2.8 million via a Placing of 15,853,097
Common Shares and US$0.01 million via a direct subscription
with the Company for 64,516 Common Shares. The net proceeds of
the Fundraising will be used by the Company to accelerate the
completion of its four drilled and uncompleted wells, drilled as
part of its Q1 2023 drilling campaign on its Gwinville acreage.
Admission and Total Voting
Rights
The new Common Shares issued pursuant to the Fundraising were
credited as fully paid, rank pari passu in all respects
with the existing Common Shares and were admitted to trading on AIM
at 8.00 a.m. (GMT) today
("Admission").
Following Admission of the Common Shares issued pursuant to the
financing, the total number of Common Shares in the Company in
issue is 165,718,160. This figure may be used by shareholders as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in the Company under the FCA's Disclosure Guidance
and Transparency Rules.
About Southern Energy
Corp.
Southern Energy Corp. is a natural gas exploration and
production company characterized by a stable, low-decline
production base, a significant low-risk drilling inventory and
strategic access to premium commodity pricing in North America. 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.
Forward Looking
Statements
Certain information included in this announcement 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 announcement may include, but
is not limited to, statements concerning the use of proceeds of the
Offering, the Company's business strategy, objectives, strength and
focus and the Company's capital program for the remainder of
2023.
The forward-looking statements contained in this announcement
are based on certain key expectations and assumptions made by
Southern, including the timing of and success of future drilling,
development and completion activities, the performance of existing
wells, the performance of new wells, the availability and
performance of facilities and pipelines, the geological
characteristics of Southern's properties, the characteristics of
its assets, the successful application of drilling, completion and
seismic technology, benefits of current commodity pricing hedging
arrangements, prevailing weather conditions, prevailing legislation
affecting the oil and gas industry, commodity prices, royalty
regimes and exchange rates, the application of regulatory and
licensing requirements, the availability of capital, labour and
services, the creditworthiness of industry partners and the ability
to source and complete asset acquisitions.
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, the risk
that the Company may apply the proceeds of the Offering differently
than as stated herein depending on future circumstances; risks
associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production; the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks), constraint in the availability of
services, commodity price and exchange rate fluctuations,
geo-political risks, political and economic instability abroad,
wars (including Russia's military
actions in Ukraine and the
Israel-Palestinian conflict), increased operating and capital costs
due to inflationary pressures, 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. These and other risks are set out in more detail in
the Prospectus Supplement, the Base Shelf Prospectus and Southern's
most recent management's discussion and analysis and annual
information form, which are available under the Company's SEDAR+
profile at www.sedarplus.ca.
The forward-looking information contained in this announcement
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 announcement 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.