Southern Energy (TSXV:SOU) is pivoting away from burning coal to generate power, and Southern Energy CEO Ian Atkinson says the company’s strategy focuses on the conventional nature of some undercapitalized assets.
“A lot of US companies have been very focused on developing shale plays, whether it’s shale gas, shale oil, and they’ve really ignored some of these older, mature bases that have some of these conventional assets” Atkinson said. “Our expertise is going into these conventional reservoirs, recapitalizing them, redeveloping them in a pretty cost-efficient manner.”
He added that one reason for the company’s listing on the London exchange is the need for a significant amount of capital to redevelop these assets. Reaching a more global equity market was important.
In November 2021, Southern Energy announced the closing of an equity financing for aggregate gross proceeds of US$10.1 million through the offering of 254,304,014 common shares. The completion of the equity financing, according to Atkinson, allowed the company to kick off three horizontal well programs at the Greenville asset, which is in Central Mississippi. The company will be going back and drilling horizontal wells and will expect results from that by late March or early April, as it kicks off the drilling program early next week.
“We’re a growth company,” he said. “We want to grow our cash flow, which should translate into growing our share price within our current assets. Right now, we do have a deep inventory of natural gas drilling we call organic growth. We’ve put a lofty target out there of reaching over 25,000 barrels of oil a day equivalent of natural gas production. For the next foreseeable future, we certainly see ourselves growing beyond that 25,000 barrels of oil per day.”
Watch the full interview of Southern Energy President and CEO Ian Atkinson above.
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