00:49:39 EST Fri 15 Nov 2019
Enter Symbol
or Name

Southern Energy Corp
Symbol SOU
Shares Issued 204,356,973
Close 2019-06-14 C$ 0.095
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Southern Energy closes Mississippi gas assets for $22M

2019-06-14 20:50 ET - News Release

Mr. Ian Atkinson reports


Southern Energy Corp. has completed its previously announced acquisition of high-quality, low-decline natural gas assets in the state of Mississippi for cash consideration of $16.5-million (U.S.) ($22.0-million), subject to customary adjustments.

"We are happy to announce the closing of this acquisition as it further illustrates our ability to execute our business plan," stated Ian Atkinson, president and chief executive officer of the company. "Southern continues to position itself for significant growth in the U.S. Gulf coast states, where commodity prices are the highest in North America."

Concurrent with the completion of the acquisition, the company closed its previously announced convertible debenture financing with a syndicate of agents co-led by Laurentian Bank Securities Inc. and Eight Capital, and including Cormark Securities Inc., Desjardins Securities Inc., Canaccord Genuity Corp. and Haywood Securities Inc., pursuant to which the company sold an aggregate principal amount of $8.1-million of convertible unsecured subordinated debentures of the company, inclusive of $283,000 of debentures issued as commission to the agents for the financing. The net proceeds from the financing were used, along with cash on hand and a further draw on the company's credit facility (see herein), to finance the acquisition.

Laurentian Bank Securities and Eight Capital acted as financial advisers to Southern on the transaction.

The debentures, as well as the common shares issuable upon conversion of the debentures, which are issued within four months of issuance of the debentures, will be subject to a hold period expiring on the day that is four months and one day after the closing of the financing.

For more information regarding the transaction, please see the company's press release dated May 23, 2019.

Concurrent with the closing of the transaction and to partially finance the acquisition, the company's senior secured credit facility was amended to increase the borrowing base by over 30 per cent from $12.5-million (U.S.) to $17.0-million (U.S.). After completing the acquisition, Southern has $15.8-million (U.S.) drawn from the facility.

About Southern Energy Corp.

Southern Energy is an oil and natural gas exploration and production company. Southern has a primary focus on developing conventional and unconventional light oil and natural gas resources in the southeast Gulf states of Mississippi, Alabama and Louisiana. Its management team has extensive experience with developing assets through the utilization of horizontal drilling and multistaged fracture completion techniques. The company has a long and successful history of working together as a team and has created significant shareholder value through high-quality engineering and geoscience work.

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