Mr. Ian Atkinson reports

SOUTHERN ENERGY CORP. PROVIDES OPERATIONAL UPDATE

Southern Energy Corp. has provided an update on field operations and production as well as recent financial hedging contracts that have been executed.

Operations update

Production for the third quarter averaged 2,814 boe/d (95% natural gas), representing a 6% increase over the prior quarter and largely reflecting the impact of the synergistic Gwinville acquisition (the "Transaction") completed in June 2023. Current production is approximately 2,900 boe/d.

At Gwinville, Southern has completed the process of installing the necessary pipeline infrastructure to consolidate the two gathering systems, allowing the Company to run just one central compressor station compared to the five that were running before the Transaction. These synergies will not only remove costly rental compression and allow monetization of spare owned compressors but will also eliminate the need for approximately 250 Mcf/d of fuel gas and associated emissions which can instead be added directly into sales volumes. Additionally, the Company has recently initiated workover operations on two shut-in wells on the acquired lands to re-establish production. The wells were previously producing at a combined rate of approximately 800 Mcf/d.

In September, the Company attempted to mechanically remediate the casing on the 18-10 #3 Upper Selma Chalk horizontal well without success. Subsequently, the heel section of the lateral (10 of 48 stages, 1,060 feet total lateral length, and 740 feet of effective lateral length) was turned over to production and the well is currently flowing at a restricted rate of 1.2 MMcf/d. The Company is considering alternative casing remediation methods for possible execution in Q1 2024.

In light of the recent recovery in U.S. natural gas prices above $3/MMBtu, the Company is also in the process of re-bidding completion services in connection with the four high quality uncompleted horizontal wells at Gwinville.

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

"We are excited with the progress we have made with the Gwinville acquisition integration, realizing quick and incremental value for shareholders through operating cost reductions and now through the start of work to increase production on the asset. At the time of pausing our capital program in Q1 2023, in response to the price of gas reaching $2.00/MMBtu, we had made a significant investment including four drilled uncompleted horizontal wells ("DUCs"), incremental Company owned field compression, wellhead facilities, Company owned water disposal capacity, and well casing for future drilling. This pre-investment positions Southern to expedite our corporate growth in light of the recent improvements in the price of U.S. natural gas and the anticipated drop in the cost of services. We look forward to updating the market further as we make key operational decisions in light of resurgent US natural gas prices."

Recent Financial Hedging Initiatives

With the recent natural gas price recovery, Southern has taken the opportunity to add further hedges, both in the near term and through the 2024 and 2025 calendar years, to protect future cash flows and ensure balance sheet resiliency through the commodity price cycle. Natural gas prices have been under pressure through the beginning of 2023, with the Q2 2023 Henry Hub price averaging $2.10/MMBtu, improving to $2.55/MMBtu in Q3 2023, and is currently at approximately $3.20/MMBtu. The Company's hedge contracts, listed below, will ensure a strong natural gas price floor, allowing Southern the ability to execute and capitalize on its organic operational plans over the coming years.

Natural Gas                Volume        Pricing                       
Fixed Price Swap                                                       
Oct 1, 2023 - Dec 31, 2023 2,000 MMBtu/d NYMEX - HH $3.095/MMBtu       
Oct 1, 2023 - Dec 31, 2023 1,000 MMBtu/d NYMEX - HH $3.050/MMBtu       
Jan 1, 2024 - Dec 31, 2025 1,000 MMBtu/d NYMEX - HH $3.880/MMBtu       
Apr 1, 2024 - Oct 31, 2024 1,500 MMBtu/d NYMEX - HH $3.208/MMBtu       
Apr 1, 2024 - Oct 31, 2024 1,500 MMBtu/d NYMEX - HH $3.420/MMBtu       
Apr 1, 2025 - Oct 31, 2025 1,500 MMBtu/d NYMEX - HH $3.420/MMBtu       
                                                                       
Costless Collar                                                        
Sep 1, 2023 - Mar 31, 2024 2,000 MMBtu/d NYMEX - HH $3.00 - $3.98/MMBtu
Jan 1, 2024 - Mar 31, 2024 1,000 MMBtu/d NYMEX - HH $3.00 - $4.60/MMBtu
Nov 1, 2024 - Mar 31, 2025 1,000 MMBtu/d NYMEX - HH $3.50 - $5.20/MMBtu

Southern thanks all of its stakeholders for their ongoing support and looks forward to providing future updates on operational activities and continuing to create shareholder value.

Qualified Person's Statement

Gary McMurren, Chief Operating Officer, who has over 23 years of relevant experience in the oil industry, has approved the technical information contained in this announcement. Mr. McMurren is registered as a Professional 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.

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.

We seek Safe Harbor.