Southern Energy Corp, a North American gas-weighted producer focused on growth, has confirmed its intention to seek a dual listing of its common shares on the London Stock Exchange's AIM market in addition to its existing listing on the TSX Venture Exchange.

Admission of the Common Shares to trading on AIM is expected to occur at 8:00 a.m. on 10 August 2021 under the TIDM 'SOUC'.

Strand Hanson is acting as Nominated and Financial Adviser to the Company, H&P Advisory ('Hannam & Partners') is acting as Financial Adviser and Joint Broker to the Company, and, from Admission, Canaccord Genuity will act as a Joint Broker to the Company.

HIGHLIGHTS:

Solid foundations to facilitate growth

• Multi-faceted growth focused company, backed by conventional, profitable, onshore gas-weighted production portfolio located in Mississippi and Alabama
  • Aggregate Gross production attributable to the Group's working interests of approximately 2,150 boe/d, predominantly comprised of 11.9 MMscf/d of gas production (Q1 2021 average) from conventional, low-decline, long-life reserves in fields with abundant infrastructure, low operating costs and premium commodity pricing
  • Existing asset base includes independently assessed net attributable 2P gas reserves of 49.4 Bcf, which the Board believes can be developed to add further production with minimal capital requirements
  • Existing and potential onshore Gulf Coast growth opportunities produce at a predictable and low-decline rate
• Southern Energy's growth strategy capitalises on unique market dynamics in the Gulf Coast which offer consolidation opportunities in addition to the low-cost development of its existing portfolio of over 30,000 net acres of mineral rights
  • Organic and inorganic growth opportunities will target conventional low decline, long life, multi-zone assets adding potentially 1,500 to 15,000 boe/d per well or transaction
  • Strategy in place to grow the Company to produce over 25,000 boe/d
• Two acquisitions already completed in focus area, with a successful yet rigorous focus on production optimisation and reducing ongoing operating costs
  • Southern Energy and its management team have successfully lowered per unit operating costs by more than 40 per cent over the preceding four years, by employing proven strategies to maximise value in under-exploited assets
  • The Group sees similar opportunities on other assets in the region which are currently being evaluated
• Intention to capitalise on significant operational experience in the region
  • The Group holds a significant regional geological database developed over seven years which it has used to build the Group's existing portfolio of stable cash flow generating assets

Aligned, experienced and operationally focused management team

• President and Chief Executive Officer Mr Ian Atkinson has over 25 years of experience in the oil and gas sector across technical, executive and board of director roles. Mr Atkinson was the founder, President and Chief Executive Officer of Gulf Pine Energy Partners, LP from 2014 until its acquisition by Southern Energy in December 2018, prior to which he was a co-founder and senior vice president of Athabasca Oil Corporation.
• On Admission, the Board will consist of one Executive Director and seven Non-Executive Directors and will be run by Mr Bruce Beynon as Non-Executive Chairman.
  • Bruce Beynon is a professional geologist with over 30 years of oil and gas industry experience
  • Multiple board and directorship roles over a distinguished career in the sector
• Board further supported by Paul Baay, Chief Executive Officer of Touchstone Exploration and Jay Haber, a US based independent oil and gas M&A consultant, both as special advisers
• Board and management have significant specialised operational skill and knowledge in the oil and gas industry
  • Existing team have the capability to compile, interpret and evaluate technical data, drill and complete wells, design and operate production facilities and a proficiency in the wider activities required to explore for and produce oil and natural gas
• The Board and management team are currently invested in approximately 16.7 per cent of the Common Shares, aligning management to growing shareholder value.

Premier jurisdiction from which to grow

• Existing business is located in premier onshore US real estate, nearby to Henry Hub terminal, which commands premium natural gas pricing
  • The Board believe that the Group can further benefit from its exposure to the expanding Gulf Coast LNG export market and the current tightening in the US gas supply/demand balance as shale gas shrinks
• Significant infrastructure already in place, given the long history of hydrocarbon production in both Mississippi and Alabama
• Low plug and abandonment liability requirements on existing assets

Ian Atkinson, President of Southern Energy, commented:
"We are delighted to be listing on AIM, ahead of an unparalleled period of growth potential and accompanying news flow for Southern Energy. With both organic and inorganic opportunities to create shareholder value, an aligned board and unique operational capability, we see now as a key time for our Company.

"Through the dual listing process, we intend to broaden our shareholder base and public profile as well as provide the Company with the platform to take advantage of the strong market dynamics and our established position in the Gulf Coast.

"We are pleased to welcome Joe Nally to the Board from Admission, who brings over 40 years' experience in London's capital markets to our team. We believe the significant experience of our Board and senior management team, supplemented by special advisers Jay Haber, who brings specific knowledge and experience in U.S Gulf Coast M&A markets, and Paul Baay, who brings successful dual listing and strategy execution credentials, sets our Company up very well for the future.

'This is an exciting period for the Company and we look forward to engaging with new shareholders in due course."