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Southern Energy Corp. ANNOUNCES A 73% INCREASE IN 2P RESERVES AT YEAR END 2021, UPDATE ON GWINVILLE DRILLING PROGRAM AND NON-CORE ASSET DISPOSITION

Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) is pleased to announce selected highlights of Southern's year end independent oil and gas reserves evaluation as of December 31, 2021 (the "NSAI Report"), and provide an update on the Company's three well drilling program at the Gwinville field and a non-core asset cash disposition

The NSAI Report was prepared by Southern's independent qualified reserves evaluator, Netherland, Sewell and Associates, Inc. ("NSAI"). All currency amounts are in United States dollars (unless otherwise stated) and comparisons refer to December 31, 2020. The Company anticipates announcing its fourth quarter and audited year end 2021 financial results and filing an annual information form ("AIF") for the year ended December 31, 2021, in April 2022.

Highlights:

• Relative to year-end 2020, the NSAI Report states

• an increase in proved developed producing ("PDP") reserves by 9% to 5.7 MMboe,

• consistent total proved ("1P") reserves at 10.5 MMboe and

• an increase in total proved plus probable ("2P") reserves by 73% to 20.2 MMboe in 2021;

• a PDP reserve life index ("RLI") of 9 years and 15 year RLI for 2P reserves

• Additional drilling locations identified at Gwinville, based on previous Selma Chalk horizontal drilling successes, which could add material levels of production;

• Before-tax net present value ("NPV") of reserves, discounted at 10% ("NPV10"), is $32.4 million on a PDP basis, $53.5 million on a 1P basis and $88.3 million on a 2P basis evaluated using the average forecast pricing of four independent reserve evaluators as at January 2022

• Material progression of before tax NPV-10 per share to CAD$0.53/share, CAD$0.88/share, and CAD$1.45/share for PDP, 1P, and 2P categories;

• The ongoing three well drilling program at Gwinville proceeding on schedule and on budget, with completion operations expected to begin in early April 2022

• Disposition of two non-core oil properties for $1.3 million, net of closing adjustments

• Aggregate production from the two properties was approximately 40 boe/d(1)

In addition to the summary information disclosed in this press release, more detailed information regarding Southern's oil and gas reserves will be included in the Company's AIF to be filed on SEDAR (www.sedar.com).

Ian Atkinson, President and Chief Executive Officer of Southern commented:

"We are delighted to report our 2021 year-end reserves report which highlights the quality of our asset base, our unique operational expertise and the capability for significant reserves growth potential in our assets as we progress our organic growth program.

"We are particularly excited by the additional probable drilling locations identified at Gwinville, which are based on results from previous Selma Chalk horizontal drilling successes and does not incorporate our new well completion design. Identification of these drilling locations demonstrates how our strategy of applying modern completion techniques can bring new life, and production, to high quality, mid-life assets.

"The NSAI report demonstrates that we have substantially extended the running room and future development potential of our asset which will complement our strategy to generate long term sustainable free funds flow and organic growth in development of our existing asset base."

2021 Independent Qualified Reserve Evaluation

The following tables highlight the findings of the NSAI Report, which has been prepared in accordance with definitions, standards and procedures contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the most recent publication of the Canadian Oil and Gas Evaluation Handbook ("COGEH"). All evaluations and summaries of future net revenue are stated prior to the provision for interest, debt service charges or general and administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs, and estimated future capital expenditures. The NSAI Report was based on the average forecast pricing of the following four independent external reserves evaluators: GLJ Ltd, Sproule Associates Limited, McDaniel & Associates Consultants Ltd and Deloitte. Additional reserves information as required under NI51-101 will be included in Southern's AIF, which will be filed on SEDAR in April 2022. The numbers in the tables below may not add due to rounding.

Summary of Reserves Volumes as at December 31, 2021

The Company's reserve volumes and undiscounted future development capital costs are summarized below as at December 31, 2021:

SUMMARY OF RESERVE VOLUMES (1)

Light and Medium Oil (Mbbls)

Condensate (Mbbls)

NGL (Mbbsl)

Conventional Natural Gas (MMcf)

Total Mboe

FDC Costs ($M)

Proved Developed Producing

117

211

78

31,804

5,707

-

Proved Developed Non-Producing

55

68

1

9,724

1,745

8,240

Proved Undeveloped

-

312

136

15,476

3,027

19,845

Total Proved

172

591

215

57,004

10,479

28,085

Probable

61

169

18

56,711

9,699

50,809

Total Proved Plus Probable

233

761

233

113,715

20,178

78,894

(1) Gross working interest reserves before royalty deductions.

The following table outlines the changes in Southern's reserves and reserve life index as at December 31, 2021 compared to December 31, 2020:

CHANGE IN RESERVES AND RESERVE LIFE INDEX(1)

2021

2020

%
Change

Reserves (mboe)
Proved Developed Producing

5,707

5,237

9%

Total Proved

10,479

10,438

0%

Total Proved Plus Probable

20,178

11,690

73%

PDP as % of 2P

28%

45%

(37%)

1P as % of 2P

52%

89%

(42%)

Reserve Life Index (years)
Proved Developed Producing

8.5

7.0

21%

Total Proved

15.6

14.0

12%

Total Proved Plus Probable

30.0

15.6

92%

(1) The Reserve Life Index ("RLI") as at December 31, 2021 is calculated as gross working interest reserves divided by the projected annual PDP production for 2022. See "Reader advisories - Oil and Gas Advisories"

Southern's total 2P reserves increased by 73% to 20.2 MMboe resulting in a 2P reserve life index of 30.0 years on projected annual PDP production for 2022. Southern's 2021 recompletion program resulted in an 9% increase in PDP reserves to 5.7 MMboe.

Net Present Value of Future Net Revenue as at December 31, 2021

The following table summarizes the net present value of the Company's reserves (before-tax) as at December 31, 2021. The reserves value on a $/boe basis, discounted at 10% per year, is also summarized for each category.

NET PRESENT VALUE BEFORE-TAX

0% (M$)

10% (M$)

20% (M$)

Unit Value(1) Before Income Tax, Discounted at 10%/year ($/boe)

Proved Developed Producing

51,635

32,437

24,461

7.22

Proved Developed Non-Producing

17,008

6,644

3,684

4.96

Proved Undeveloped

32,544

14,463

6,759

5.86

Total Proved

101,187

53,544

34,904

6.45

Probable

102,089

34,712

14,766

4.49

Total Proved Plus Probable

203,276

88,256

49,670

5.50

(1) Unit values are based on net reserves. Net reserves are the Company's working interest reserves after deduction of royalties

Forecast Prices Used in Estimates

The following table outlines the forecasted future prices used by NSAI in their evaluation of the Company's reserves at December 31, 2021, which are based on a four-consultant average price forecast. The forecast cost and price assumptions assume increases in wellhead selling prices and consider inflation with respect to future operating and capital costs.

FUTURE COMMODITY PRICE FORECAST

WTI Cushing

Oklahoma

US$/bbl

NYMEX

Henry Hub

US$/MMBtu

2022

71.88

3.89

2023

67.91

3.47

2024

65.42

3.23

2025

66.72

3.29

2026

68.05

3.35

2027

69.42

3.43

2028

70.81

3.49

2029

72.22

3.57

2030

73.67

3.63

2031

75.14

3.71

Thereafter

+ 2.0%/year

+ 2.0%/year

Reserves Reconciliation

The following table sets out the reconciliation of Southern's gross reserves based on forecast prices and costs by principal product type as at December 31, 2021 relative to December 31, 2020. The majority of 2P reserves increases, year-on-year, came from recognition of the Gwinville Selma Chalk horizontal drilling locations for positive revisions.

RESERVES(1) RECONCILIATION

PDP (Mboe)

1P (Mboe)

Probable (Mboe)

2P (Mboe)

December 31, 2020

5,237

10,438

1,252

11,690

Discoveries

-

-

-

-

Extensions

-

-

-

-

Infill Drilling

-

-

8,399

8,399

Improved Recovery

-

-

-

-

Technical Revisions(2)

982

564

19

583

Acquisitions

-

-

-

-

Dispositions

(49)

(49)

-

(49)

Economic Factors

303

292

29

321

Production(3)

(766)

(766)

-

(766)

December 31, 2021

5,707

10,479

9,699

20,178

(1) Gross working interest reserves before royalty deductions

(2) Technical revisions also include reserves associated with changes in operating costs and commodity price offsets

(3) Produced volumes for the year ended December 31, 2021 are internally estimated

Operations Update

Energy Drilling Rig #15 spud the first well on the Gwinville three-well padsite on January 28, 2022. Surface casing has been run on all three wells, and we are currently drilling the third and final intermediate section prior to initiating the horizontal laterals. Southern anticipates that drilling operations will conclude in late March, with completion operations to follow in early April 2022.

In Q1 2022, Southern entered into a hedge contract through December 31, 2022, on 2,000 MMBtu/d of natural gas production at a fixed price of $4.61/MMBtu.

Gary McMurren, Vice President of Engineering commented:

"The team is very excited about revitalizing the Gwinville Field with modern horizontal drilling and multistage fracture technology and this first padsite will be a great measure of how effective these optimized wellbore designs are at maximizing gas delivery from Selma Chalk horizontals.

"Following the completion operations, we will immediately be flowing the wells back through our company-owned, high pressure gathering system to sales, thereby eliminating any flaring emissions and lost revenue. By the end of Q2 2022 we should have a good idea of how the initial well rates match our type curve expectations."

Non-Core Asset Disposition

Recently, in two separate transactions, Southern disposed of two small, non-core oil properties located outside of the Company's focused asset base in central Mississippi. Total working-interest production from the assets was approximately 40 boe/d for a consideration of $1.3 million net of closing adjustments. The implied sale metrics of approximately $32,500/boepd and 3x fourth quarter 2021 annualized cash flow are strong considering the limited upside potential from the assets.

Ian Atkinson commented:

"Divesting these small interests is consistent with our core strategy to focus on high working interest, operated assets with re-development opportunities for our shareholders."

Change in Reporting Currency

Southern is electing to change its reporting currency from Canadian dollars to U.S. dollars since the majority of its natural gas and crude oil properties are in the U.S. The change in reporting currency is a voluntary change which is accounted for retrospectively. All prior periods will be restated to U.S. dollars.

A new corporate presentation dated March 2022 is now available on the Company website at www.southernenergycorp.com.

Warrant Exercise and Admission to Trading on AIM and Total Voting Rights

Southern has issued 20,000 new common shares in the Company ("Common Shares") to satisfy an exercise of warrants over Common Shares at an exercise price of CAD0.32 per Common Share.

Application has been made to the London Stock Exchange plc for the admission to trading on AIM of the 20,000 new Common Shares, which is expected to occur at 8.00 a.m. on or around 7 March 2022 ("Admission"). On Admission, the new Common Shares will rank pari passu with the existing Common Shares.

On Admission, the issued share capital of the Company will be 78,171,858 Common Shares and this figure may be used by shareholders as a denominator for the calculations by which they will determine if they are required to notify their interest in or change to their interest in the Company. There are no Common Shares held in treasury and each Common Share entitles the holder to a single vote at general meetings of the Company. Accordingly, on Admission, the total number of voting rights in the Company will be 78,171,858.

For further information, please contact:

Southern Energy Corp.
Ian Atkinson (President and CEO)
Calvin Yau (VP Finance and CFO)


+1 587 287 5401
+1 587 287 5402

Strand Hanson Limited - Nominated & Financial Adviser
James Spinney / James Bellman

Hannam & Partners - Joint Broker
Sam Merlin / Ernest Bell

Canaccord Genuity - Joint Broker
Henry Fitzgerald-O'Connor / James Asensio

+44 (0) 20 7409 3494


+44 (0) 20 7907 8500

+44 (0) 20 7523 8000

Camarco
James Crothers, Billy Clegg, Daniel Sherwen


+44 (0) 20 3757 4980

About Southern Energy Corp.

Southern Energy Corp. is a 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.

Qualified Person's Statement

Gary McMurren, Vice President Engineering, who has over 22 years of relevant experience in the oil industry and has approved the technical information contained in this announcement. Mr. McMurren is registered as a Profession Engineer with the Association of Professional Engineers and Geoscientists of Alberta and received a Bachelor of Science degree in Chemical Engineering (with distinction) from the University of Alberta.

Disclosure of Oil and Gas Information

AIF. Southern's Statement of Reserves Data and Other Oil and Gas Information on Form 51-101F1 dated effective as at December 31, 2021, which will include further disclosure of Southern's oil and gas reserves and other oil and gas information in accordance with NI 51-101 and COGEH forming the basis of this press release, will be included in the AIF which will be available on SEDAR at www.sedar.com in April 2022.

Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with NI 51-101. Boe may be misleading, particularly if used in isolation.

Reserves and Future Net Revenue Disclosure. All reserves values, future net revenue and ancillary information contained in this press release are derived from the NSAI Report unless otherwise noted. All reserve references in this press release are "Company gross reserves". Company gross reserves are the Company's total working interest reserves before the deduction of any royalties payable by the Company. Estimates of reserves and future net revenue for individual properties may not reflect the same level of confidence as estimates of reserves and future net revenue for all properties, due to the effect of aggregation. There is no assurance that the forecast price and cost assumptions applied by NSAI in evaluating Southern's reserves will be attained and variances could be material. All reserves assigned in the NSAI Report are located in the State of Mississippi and presented on a consolidated basis.

All evaluations and summaries of future net revenue are stated prior to the provision for interest, debt service charges or general and administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. The recovery and reserve estimates of Southern's crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. There are numerous uncertainties inherent in estimating quantities of crude oil, reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth herein are estimates only.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Proved developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (proved, probable, possible) to which they are assigned. Certain terms used in this press release but not defined are defined in NI 51-101, CSA Staff Notice 51-324 - Revised Glossary to NI 51-101, Revised Glossary to NI 51-101, Standards of Disclosure for Oil and Gas Activities ("CSA Staff Notice 51-324") and/or the COGEH and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and the COGEH, as the case may be.

Oil and Gas Metrics. This press release contains metrics commonly used in the oil and natural gas industry, such as development capital.

"Development capital" means the aggregate exploration and development costs incurred in the financial year on reserves that are categorized as development. Development capital presented herein excludes land and capitalized administration costs but includes the cost of acquisitions and capital associated with acquisitions where reserve additions are attributed to the acquisitions. These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare Southern's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.

Abbreviations

bbls

barrels

Mbbls

thousand barrels

bbls/d

barrels per day

$M

thousands of US dollars

boe

barrels of oil equivalent

Mboe

thousand barrels of oil equivalent

MMboe

million barrels of oil equivalent

boe/d

barrels of oil equivalent per day

GJ

gigajoule

Mcf

thousand cubic feet

Mcf/d

thousand cubic feet per day

MMcf/d

million cubic feet per day

MMBtu

million British Thermal Units

WTI

West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade

Forward Looking Information

This press release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "guidance", "outlook", "anticipate", "target", "plan", "continue", "intend", "consider", "estimate", "expect", "may", "will", "should", "could" or similar words suggesting future outcomes. More particularly, this press release contains statements concerning: Southern's business strategy, objectives, strength and focus; future consolidation activity and organic growth; future intentions with respect to return of capital; oil and natural gas production levels, decline rates, free funds flow; anticipated operational results for 2022 including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; expectations regarding commodity prices; the performance characteristics of the Company's oil and natural gas properties; the ability of the Company to achieve drilling success consistent with management's expectations; the source of funding for the Company's activities including development costs. Statements relating to "reserves" are also deemed to be forward- looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Southern, including those relating to: the business plan of Southern; the timing of and success of future drilling, development and completion activities; the geological characteristics of Southern's properties; prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; prevailing weather and break-up conditions; royalty regimes and exchange rates; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow the banking facilities; the accuracy of Southern's geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Southern's ability to execute its plans and strategies.

Although management considers these assumptions to be reasonable based on information currently available, undue reliance should not be placed on the forward-looking statements because Southern can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: incorrect assessments of the value of benefits to be obtained from exploration and development programs; risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production; and delays or changes in plans with respect to exploration or development projects or capital expenditures); commodity prices; increased operating and capital costs due to inflationary pressures; the uncertainty of estimates and projections relating to production, cash generation, costs and expenses; health, safety, litigation and environmental risks; access to capital; and the COVID-19 pandemic. Due to the nature of the oil and natural gas industry, drilling plans and operational activities may be delayed or modified to react to market conditions, results of past operations, regulatory approvals or availability of services causing results to be delayed. Please refer to the annual information form for the year ended December 31, 2020, the management's discussion and analysis for the period ended September 30, 2021 (the "MD&A") and other continuous disclosure documents for additional risk factors relating to Southern, which can be accessed either on Southern's website at www.southernenergycorp.com or under the Company's profile on www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's prospective results of operations and free funds flow, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Southern's future business operations. Southern and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Southern disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

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.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE:Southern Energy Corp.



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galleon energy

Southern Energy

Overview

The export of Liquid Natural Gas (LNG) in the United States has dramatically grown since 2016. Analysts report that U.S. LNG exports set an all-time record in March 2021 at 10.5Bcf/d and averaged 9.2Bcf/d the following month leading to an increase demand for natural gas.

With projected U.S. consumption of natural gas to hit unprecedented averages of 82.6 billion cubic feet per day in 2021, investors looking to gain exposure in this growing space could see significant upside potential by investing in emerging players in oil and natural gas production.

Southern Energy (TSXV:SOU) is Canadian listed, primarily natural gas company focused on acquiring and developing conventional natural gas and light oil resources in the southeast U.S. Gulf States of Mississippi, Louisiana, and East Texas.

Southern Energy’s core asset base consists of 2,300 boe/d of high cash margin, low decline stable production, and a combined area of 33,000 acres held by production. Its main Mechanicsburg, Gwinville and greater Williamsburg assets host exceptional development upsides, including large scale, multi-zone expansion potential within company owned infrastructure.

Southern’s emphasis on incorporating technological advancement in its development plans gives the company a competitive edge. In the past 5 years management has put together a massive proprietary digital database of over 25,000 wells within the Gulf Coast focus area, which allows the company to geologically map areas much quicker and across millions of acres at one time. This highly valuable data also optimizes acquisition evaluation workflow and the company has evaluated over 100 assets for possible acquisition.

The company anticipates significant growth in the next 18 to 24 months with the completion of strategic and transformative acquisitions in the focus area. Southern has conducted extensive groundwork to access capital in the global equity markets and has engaged with key high profile advisors to access these markets.

In April 2021, Southern closed a CAD$5.5 million private placement priced at CAD$0.04 per share with a full warrant for two years priced at CAD0.04 per share unit. This placement involved existing and new investors alongside management participation in the financing. The company intends to use the proceeds to complete its restructuring transiaction and for general corporate purposes.

Southern Energy’s core values emphasize dedication to the environment, safety, stakeholder satisfaction and governance. The company works actively with state regulators to design best practices and policies in areas of reducing air emissions and fresh water usage. Southern has an impeccable saftey record since management began operations in the area in 2013. A focus on governance is also a key to success for Southern with independent and diverse board oversight and regular stakeholder engagement.

Southern Energy’s management team has a long and successful track record of working together and creating significant shareholder value through strategic acquisition and efficient development of existing conventional oil and natural gas fields..The team is working to utilize modern development techniques on mature, low decline assets. Together, they prime the company for significant success and economic growth.

Company Highlights

  • Southern Energy 100 percent focused on consolidating and developing its Gulf Coast oil and natural gas operations, where they leverage exceptional resource pricing, low-risk and high cash margin potential.
  • The company currently operates in two counties in Alabama, twelve countries in Mississippi and holds a high working interest in more than 30,000 net acres of favorable land positioning.
  • Southern has a robust core asset base consisting of the main Mechanicsburg, Gwinville and Green Creeks assets and highly prospective Magee, Mount Olive and Williamsburg targets.
  • As an early-stage company, Southern hosts exceptional growth potential and expansion opportunities, including projected listing on London markets in the near future. The company could see growth from its CAD$20 million market capitalization to upwards of CAD$200 million.
  • Southern Energy leverages strong institutional investor support for its business plan execution and projected international expansion in the future.
  • The company has an expert management and technical team with extensive experience in profitably developing assets with horizontal drilling and modern unconventional completion techniques and enhanced oil recovery methods.

Key Projects

Southeast Gulf State Oil and Natural Gas Operations

Southern Energy operates in two counties in Alabama, twelve counties in Mississippi and holds a high working interest in more than 60,000 net acres. Its core asset base consists of the main three Mechanicsburg, Gwinville and Greens Creek assets, as well as the highly prospective Magee, Mount Olive and Williamsburg targets.

  • Mechanicsburg hosts liquids-rich resources approximately at over 30bbl/MMcf of oil and liquid natural gas.
  • Gwinville hosts multi-zone development upsides with over 60 horizontal Selma Chalk locations.
  • Greens Creek hosts low-cost Hosston recompletions, infill Hosston drilling opportunities and Cotton Valley potential.
  • Magee has a field production potential of over 10MMbbl and high-quality oil opportunities.
  • Mount Olive hosts high deliverability gas wells and infill Eutaw drilling opportunities.
  • Williamsburg hosts infill drilling opportunities and has revealed large oil discoveries on-trend.

Southern Energy has a defined plan to build its Cotton Valley assets in a regional fairway using its proprietary database. The low-risk, prolific hydrocarbon trend displays consistent ‘macro’ trapping elements throughout the structure and a proven vertical production in Mississippi with low-cost completions transitioning into horizontal drilling, multi-stage completion technques in Louisiana and East Texas. Southern has also identified several low-risk horizontal redevelopment plays along this trend.

The company remains focused on controlling costs and developing its scalable large resource assets. Through acquisitions and strategic investor partnerships, Southern Energy intends to continue consolidating its low-decline, high-growth potential assets in the Gulf Coast area.

Management Team

Ian Atkinson — P.Eng., President & CEO

Ian Atkinson is a petroleum engineer with over 25 years of technical, executive and board of directors experience in the energy industry. He is the founder and senior executive officer of Athabasca Oil Corporation. Atkinson previously held engineering, operations, acquisitions and executive positions at Talisman Energy Inc., Renaissance Energy Ltd. and Morpheus Energy.

Calvin Yau — CA, CPA, VP of Finance & CFO

Calvin Yau has over 15 years of financial experience in the oil and gas industry. He has held previous positions of increasing responsibility at Molopo Energy, Waldron Energy, Bronco Energy, and Daylight Resources. Yau is also a member of the Institute of Chartered Accountants of Alberta.

Chris Birchard, P.Geol. — VP of Exploration

Chris Birchard has over 20 years of exploration and management experience in the oil and gas industry. He was the former senior geologist and team lead at Athabasca Oil Corporation and VP of Exploration at Bellamont Exploration Ltd. Birchard has held previous technical positions at Espoir Exploration Corp., Keywest Energy Ltd., Devon Canada and Anderson Exploration Ltd.

Erin Buschert — VP of Land

Erin Buschert has over 20 years of experience in mineral & surface land, mergers & acquisitions and contract negotiations. She was the former manager of Land for Saskatchewan and Manitoba at Crescent Point Energy Corp. Buschert has held previous positions of increasing responsibility at Talisman Energy, TriStar Oil & Gas and ARC Resources Ltd.

Buschert is a member of the American Association of Petroleum Landmen (AAPL), the Canadian Association of Petroleum Landmen (CAPL), the Canadian Association of Petroleum Land Administrators (CAPLA), and the Petroleum and Acquisition Divestment Association (PADA).

Jim McFadyen — VP of Operations

Jim McFadyen has over 20 years of operational experience in the oil and gas industry. He was the former operations manager at Athabasca Oil Corporation (Light Oil) and Galleon Energy Inc. Mcfadyen has also held previous leadership and operational roles at Fairborne Energy and Renaissance Energy Ltd.

Gary McMurren, P.Eng. — VP of Engineering

Gary McMurren has over 20 years of engineering, operational and management experience in the oil and gas industry. He was the former director of Light Oil at Athabasca. McMurren also held previous engineering and operational roles at Galleon Energy Inc., ARC Resources Ltd. and Talisman Energy Inc.

Southern Energy Corp. Announces First Quarter 2022 Financial and Operating Results

Southern Energy Corp. Announces First Quarter 2022 Financial and Operating Results

Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) today announces the release of its first quarter financial and operating results for the three months ended March 31, 2022

Southern Energy Corp., Thursday, May 26, 2022, Press release picture

Southern is an established producer with natural gas and light oil assets in Mississippi characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to the best commodity pricing in North America. Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements (the "Financial Statements") and related management's discussion and analysis (the "MD&A") for the three months ended March 31, 2022, which are available on the Company's website at www.southernenergycorp.com and have been filed on SEDAR.

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Southern Energy Corp. Announces Block Listing Application to AIM

Southern Energy Corp. Announces Block Listing Application to AIM

Southern Energy Corp. ("Southern Energy" or the "Company") (TSXV:SOU)(AIM:SOUC), a U.S.-focused, growth-oriented oil and natural gas producer, announces that application has been made to AIM for a block admission of 15,624,232 new common shares in the Company ("Common Shares"). This will be used to facilitate the admission of Common Shares to trading following future exercises of outstanding warrants issued in 2021 ("2021 Warrants") and future conversions of outstanding 8% convertible unsecured subordinated debentures issued on June 14, 2019 and January 15, 2021 (the "Convertible Debentures"). The number of Common Shares admitted for these purposes is as follows

  • up to 7,812,116 Common Shares in connection with the 2021 Warrants; and
  • up to 7,812,116 Common Shares in connection with the Convertible Debentures.

The Common Shares cited above will be issued from time to time pursuant to exercises of the 2021 Warrants and conversions of the outstanding Convertible Debentures.

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Southern Energy Corp. Announces Fourth Quarter and Year End 2021 Financial and Operating Results

Southern Energy Corp. Announces Fourth Quarter and Year End 2021 Financial and Operating Results

Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) today announces the release of its fourth quarter and year ended December 31, 2021, financial and operating results

Southern Energy Corp., Monday, April 18, 2022, Press release picture

Southern is an established producer with natural gas and light oil assets in Mississippi characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to the best commodity pricing in North America. Selected financial and operational information is outlined below and should be read in conjunction with the Company's consolidated financial statements (the "Financial Statements") and related management's discussion and analysis (the "MD&A") for the three months and year ended December 31, 2021 and annual information form ("AIF") for the year ended December 31, 2021, which are available on the Company's website at www.southernenergycorp.com and have been filed on SEDAR.

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Southern Energy Corp. Announces Director Share Purchase

Southern Energy Corp. Announces Director Share Purchase

Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) announces the following purchases of Company common shares. The notification below, made in accordance with the requirements of the EU Market Abuse Regulation, provides further detail on the applicable transaction

1.Details of the person discharging managerial responsibilities / person closely associated
a)NameSteven Smith
2.Reason for the notification
a)Position/statusDirector
b)Initial notification /AmendmentInitial notification
3.Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)NameSouthern Energy Corp.
b)LEI213800R25GL7J3EBJ698
4.Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)Description of the financial instrument, type of instrumentCommon shares in Southern Energy Corp.
Identification codeCA8428133059
b)Nature of the transactionPurchase of common shares on the open market
c)Price(s) and volume(s)200,000 common shares at a price of CAD0.4088
d)Aggregated informationN/A
e)Date of the transaction18 January 2022
f)Place of the transactionToronto Stock Exchange

For further information, please contact:

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Southern Energy Corp. Announces Update Re Share Consolidation

Southern Energy Corp. Announces Update Re Share Consolidation

Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC), a U.S.-focused, growth-oriented natural gas producer, is pleased to confirm that its proposed share consolidation (the "Consolidation") announced on December 10, 2021 has been approved by the TSX Venture Exchange ("TSX-V"), with trading in the post-Consolidation Shares to commence at market open on December 22, 2021 on both AIM and the TSX-V

The 616,901,068 existing Common Shares currently issued and outstanding will be reduced on the basis of one post-consolidation Common Share for every eight pre-consolidation Common Shares to approximately 77,112,652 Common Shares on a post-Consolidation basis ("Consolidated Shares"). The final aggregate number of Consolidated Shares, taking into account fractional adjustments, will be announced prior to market open tomorrow morning.

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Suncor Energy to Hold Oil Sands Operations Presentation

Suncor (TSX: SU) (NYSE: SU) will hold an Oil Sands Operations presentation on July 13, 2022 from 7:00 a.m. to 10:00 a.m. MT (9:00 a.m. to 12:00 p.m. ET).

The presentation will focus on the company's oil sands operations and providing updates on production and operational actions and plans to ensure safe and reliable performance, with presenters:

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ALTAGAS ADVANCES GLOBAL EXPORTS STRATEGY THROUGH ACQUISITION OF REMAINING PETROGAS STAKE

Acquisition Advances Global Exports Strategy and Focus on Connecting Customers and Markets while Reducing Asian Carbon Intensity; Expected to be Immediately Accretive to Earnings Per Share

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) is pleased to announce the purchase of 25.97% equity ownership of Petrogas Energy Corp. ("Petrogas") from Idemitsu Canada Corporation, a wholly owned subsidiary of Idemitsu Kosan Co., Ltd. ("Idemitsu"), for total cash considerations of C$285 million . The closing and effective date of the transaction is July 5, 2022 with AltaGas now owning 100% of Petrogas.

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PrairieSky Royalty Announces Conference Call for Q2 2022 Results

PrairieSky will release its Q2 2022 results on Monday, July 18, 2022 after markets close. The news release detailing PrairieSky's Q2 2022 results will provide operating and financial information. Financial statements along with management's discussion and analysis will be available on PrairieSky's website at www.prairiesky.com and on SEDAR at www.sedar.com .

A conference call to discuss the results will be held for the investment community on Tuesday, July 19, 2022 beginning at 6:30 am MT (8:30 am ET). To participate in the conference call, you are asked to register at the link provided below. Details regarding the call will be provided to you upon registration.

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oil rigs on land in the sunset

Major Energy Projects to Watch in Australia in 2022

With increasing needs for energy, the generation and use of energy is one of the most important cornerstones in any economy or civilization today. Australia is investing hundreds of billions of dollars into major energy projects — investments that will supply the energy for a brighter future.

Coal features prominently in the Australian economy and in the energy sector in particular. It is the second-largest export in Australia, outdone only by iron ore. Natural gas also makes the list at number four.

The energy industry in Australia produces 2.4 percent of the world's energy. Of the energy generated in the country, three-quarters of it is exported — AU$80 billion dollars' worth. Naturally, given the prevalence of coal in its economy, Australia's energy consumption largely relies on coal.

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ALTAGAS TO ISSUE SECOND QUARTER 2022 RESULTS

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) will release its 2022 second quarter financial results on Thursday, July 28, 2022 before markets open. A conference call and webcast will be held the same day to discuss the financial results and other corporate developments.

Time: 8:00 a.m. MT ( 10:00 a.m. ET )
Dial-in:              1-416-764-8659 or toll free at 1-888-664-6392
Webcast: https://www.altagas.ca/invest/events-and-presentations

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Imperial announces sale of interests in Montney and Duvernay assets

Imperial (TSE: IMO, NYSE American: IMO) today announced that together with ExxonMobil Canada, it has entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, which is jointly owned by Imperial and ExxonMobil Canada, for a total cash consideration of $1.9 billion ($940 million Imperial's share). The sale is expected to close before the end of the third quarter 2022, subject to regulatory approvals.

The sale completes the marketing effort announced in January 2022, and is consistent with Imperial's strategy to focus upstream resources on key oil sands assets and its commitment to deliver long-term value to shareholders.

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