Southern Energy Corp. · TSXV:SOU
Southern Energy — Investor Presentation (November 2022)
24 slides from Southern Energy's investor presentation, November 2022
Slide 1: Positioned for Growth
Positioned for Growth Corporate Presentation November 2022 TSXV : SOU
Slide 2: Positioned for Significant Growth
Positioned for Significant Growth Southern Energy is a growing, cash generative, conventional gas producer in the southeast United States High quality assets attracting premium North American pricing SOUC, SOU.V • Production receives essentially undiscounted NYMEX (Henry Hub), LLS pricing Trading Sy
Slide 3: Southern Energy Business Plan – Focused on Value Creation
Southern Energy Business Plan – Focused on Value Creation Low-Risk Organic Development Drilling & Reserves Growth Accretive PDP Acquisitions Focus Area ✓ Large scale, under-developed assets ✓ Disciplined consolidation strategy Strong Base & Asset Optimization with low historic recovery from utilizin
Slide 4: Q4 2022 Activity Update
Q4 2022 Activity Update Continued Premium to NYMEX Next Phase of Gwinville Development Approved $101 MM Program Budget Transco Zone 4 sales point at Internally funded by cash flow, cash Gwinville continues to see a Preparations for multi-well (13+) HZ on hand, and conservative expansion premium to H
Slide 5: Building our Business in the Right Place, at the Right Time
Building our Business in the Right Place, at the Right Time Low-Cost Operations Public Gas Producers - Q3 2022 Field Cash Margins • Southern has minimal transportation costs $12.00 because the Company owns its own infrastructure and sells gas directly to sales All-In Gathering, Processing, Transport
Slide 6: Gwinville – Large Scale Natural Gas Redevelopment
Gwinville – Large Scale Natural Gas Redevelopment Significant Underdeveloped Gas Resource Gwinville Field – Jefferson Davis County, MS • 1+ Tcf OGIP in Selma Chalk, current recovery ~ 15% Multi Tcf Gas in Place Bcf MMbbl • Multi-zone production of 1.5 Tcf, 12 MMbbl, historical decline < 10%, with ad
Slide 7: Successful Gwinville Selma Chalk Appraisal Program
Successful Gwinville Selma Chalk Appraisal Program Appraisal Program Results • Successfully drilled and completed 3 economic HZ Upper Selma Chalk wells in H1 2022 Selma Chalk Structure • Costs executed within 20% of budget estimate, despite higher inflationary pressures • Gathered key reservoir, geo
Slide 8: Initiating Long Term Development at Gwinville
Initiating Long Term Development at Gwinville Program Planning • Program designed with the goal of obtaining key well results to aid in future planning and new horizon reserves booking • Key services and tangible equipment secured for both phases of program • Drilling Rig | Casing | Completion Servi
Slide 9: Gwinville Type Well Economics
Gwinville Type Well Economics Base Case – Gen 2 Type Well Assumes Gen 2 Type Well (4,500’ lateral, 5.7 MMcf/d IP30 and 4.3 Bcf EUR) and $5.5 MM per well Flat Gas Price Forecast ($/MMBTU) $4.00 $5.00 $6.00 $7.00 Capital $10.00 $9.00 $8.00 Operating Income $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.
Slide 10: Organic Development Activity Driving Growth
Organic Development Activity Driving Growth Significant Gwinville Growth Model – Selma Chalk Only Significant Growth Opportunities Based on Generation 2 type curve results Conservative single rig program < 8 months/year (15 wells) Southern has multiple development 20,000 opportunities across the Mis
Slide 11: Eight Years of Operating History Has Formed Strategic Advantage
Eight Years of Operating History Has Formed Strategic Advantage Strategic Advantage Consolidation & Development Focus Area • Self-generated opportunities utilizing proprietary database • Digital workflow has proven management successful in previous companies Oklahoma • Allows for a significant amoun
Slide 12: Tightening of the U.S. Gas Supply / Demand Balance
Tightening of the U.S. Gas Supply / Demand Balance Positioning Southern for the Future of Natural Gas Southern Proximity to expanding LNG Export Markets The Short Term: Winter 2023 • Re-start of the Freeport LNG facility will increase U.S. demand by > 2 Bcf/d • With Freeport offline for 6 months, U.
Slide 13: Southern Energy Summary
Southern Energy Summary Immediate, meaningful growth in production and cash flow from recent drilling program realized in Q3 2022 Medium to long term growth in cash flow, reserves & production through fully funded organic development • Initiate long term, self-funded organic growth in Q4 2022 • Valu
Slide 14: Appendix
Appendix TSXV: SOU, AIM: SOUC, OTCQX: SOUTF www.southernenergycorp.com 13
Slide 15: Mississippi Oil & Gas History – Home of Core Assets
Mississippi Oil & Gas History – Home of Core Assets Mississippi Oil & Gas Highlights > 2.0 > 10 > 34,000 Billion bbl cumulative oil Tcf cumulative gas Wells drilled to date • Significant hydrocarbon recovery – Superior production on a per well basis than Texas or Louisiana • First commercial oil wel
Slide 16: Core Southern Energy Asset Base
Core Southern Energy Asset Base > 29,000 Acres ~ 3,408 boe/d $88.3 MM < $4.00/boe (> 97% HBP) Daily Production (1) 2P PV10 (2) All-In Lifting/Processing Cost Mechanicsburg Magee Mississippi • Liquids rich (> 25 bbl/MMcf oil & NGL) 350 35 • Field production > 10 MMbbl • Field covered by 53 mi2 3D boe
Slide 17: Appraisal Program Results – Proof of Concept
Appraisal Program Results – Proof of Concept Successfully drilled and completed 3 HZ Selma Chalk wells with planned frac intensity GH 19-3 #2 IP30 6.5 MMcf/d 3,498’ Lateral Length 41 Frac Stages Costs executed within 20% of budget estimate, despite higher industry inflationary pressures 90% In Targe
Slide 18: Effect of Enhanced Seismic and Directional Technology
Effect of Enhanced Seismic and Directional Technology New D&C strategies provide line of sight to improved results on future program Rotary Steerable System Proprietary 3D Seismic has been re-interpreted to improve target window identification Southern is replacing a conventional mud motor with a sp
Slide 19: Leadership Team
Leadership Team Experienced and successful management team with a history of creating shareholder value together Strong technical expertise combined with a modern approach to data and workflow creates proven early mover advantage Ian Atkinson Calvin Yau Gary McMurren Erin Buschert Jim McFadyen Presi
Slide 20: Board of Directors
Board of Directors Experienced and talented leadership to guide the Execution of Southern Energy’s Business Plan Board of Directors Special Advisor Ian Atkinson, P. Eng., ICD.D Bruce Beynon, P. Geol. (Chairman) Jay D. Haber Former founder and EVP of Athabasca Oil Former EVP, Exploration and Corporat
Slide 21: Modern Energy Company - Environment, Social & Governance
Modern Energy Company - Environment, Social & Governance Southern’s near term mission is to support the U.S. transition to cleaner sources of electricity generation by delivering low cost, conventional natural gas Central Mississippi Operations Team Core Values at Southern – Not Buzz Words Environme
Slide 22: Disclaimers
Disclaimers General The information contained herein has been provided solely for information purposes and does not purport to be comprehensive or contain all the information that may be required by recipients to evaluate Southern Energy Corp. ("Southern" or the "Company"). This Presentation and the
Slide 23: Disclaimers
Disclaimers FOFI This Presentation contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's prospective results of operations, production, investor yields, working capital, capital expenditures, enterprise value, share price, investment
Slide 24: Disclaimers
Disclaimers Specified Financial Measures In this Presentation, certain key metrics, performance indicators, and industry benchmarks are used to analyze financial and operating performance. These performance indicators and benchmarks are used by Southern as key measures of profitability, and provide
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