Ian Atkinson, President and CEO of Southern Energy Corp (TSX.V: SOU) (OTCQX: SOUTF), joins us for a comprehensive overview of the company, projects, team, financials, and key news and milestones on tap for 2023. Southern Energy is an established producer with natural gas and light oil assets in Mississippi, that recently announced the its third quarter financial and operating results for the three and nine months ended September 30, 2022. It generated $8.3 million of adjusted funds flow from operations in Q3 2022 and $14.1 million for the nine months ended September 30, 2022, with petroleum and natural gas sales of $19.2 million in Q3 2022, an increase of 268% from the same period in 2021.
We have Ian outline the slated growth at the flagship Gwinnville Development project, with 13 wells planned for both Phase 1 and Phase 2 programs this year, and the first 3 already drilled and completed. Production will be starting to ramp up in February and March and continue to grow for years to come, with the strategy of drilling and average of 15 wells per year for the next few years from their strong financial situation and organic funds flow growth. The management team anticipates growing production from 3,400 BOE per day of currently to over 25,000 BOE per day in the next 4 years.
In addition to the growth of the Company’s Mississippi assets, there is still keen interest in growing through future acquisitions, possibly in Louisiana and Texas, as the Citibank formations, Selma Chalk formations, and Cotton Valley formations extend along trend in these jurisdictions. We wrap up diving into the financial strength of the company, their current and anticipated hedging positions, the strength of their natural gas pricing power compared to Canadian companies or even compared to Henry Hub pricing, and the availability of their credit facility if needed.
If you have any questions for Ian regarding Southern Energy, then please email us either Fleck@kereport.com or Shad@kereport.com.
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