Southern Energy Corp. · TSXV:SOU
Southern Energy — Investor Presentation (November 2023)
23 slides from Southern Energy's investor presentation, November 2023
Slide 1: Uniquely Positioned to Deliver Sustainable Growth
Uniquely Positioned to Deliver Sustainable Growth Corporate Presentation November 2023 TSXV : SOU
Slide 2: Southern Energy - Positioned for Significant Growth
Southern Energy - Positioned for Significant Growth High quality Gulf Coast assets receiving premium pricing • Premium natural gas pricing above NYMEX (Henry Hub) • Stable base production and cash flow with long reserve life AIM, TSXV, OTCQX Listings • Low cost, high margin operations support profit
Slide 3: Focused on Value Creation through Accretive Growth
Focused on Value Creation through Accretive Growth Acquisition Opportunities Organic Development Growth Strong Base Production ✓ Disciplined consolidation strategy ✓ Large scale, under-developed assets utilizing management’s proprietary with low historic recovery from & Asset Optimization database a
Slide 4: Southern Energy's Gulf Coast Advantage
Southern Energy’s Gulf Coast Advantage High Profit Margin Public NorthPublic American Gas Producers Gas Producers – LTM - 2022 Field Cash Field Cash Margins Margins • Minimal transportation costs with owned/ $7.00 operated infrastructure All-In Gathering, Processing, Transportation and Operating Cos
Slide 5: Gwinville Large Scale Natural Gas Redevelopment
Gwinville Large Scale Natural Gas Redevelopment Significant Underdeveloped Gas Resource 2022/2023 Drilling Program Summary • Multi-zone production of 1.5 Tcf, 12 MMbbl, historical decline < 10%; historically, Successfully drilled 10 horizontal wells; Completed only 6 wells to date largest gas field
Slide 6: Gwinville Horizontal Redevelopment Appraisal Program
Gwinville Horizontal Redevelopment Appraisal Program Appraisal Program Results 1 mile • Successfully drilled 10 horizontal laterals in three separate reservoirs to delineate resource • Achieved pacesetter wells and associated cost efficiencies with larger program 14-6 #3 • Gathered key reservoir, ge
Slide 7: Accelerating the Gwinville Production Ramp Up
Accelerating the Gwinville Production Ramp Up 4 Potential High-Rate Wells Ready for Completion 1 mile Upper Selma Chalk Lower Selma Chalk Funds from recent financing will accelerate the completion of City Bank the 4 DUC wells from the Q1 2023 drilling campaign DUC Pad • Wells were left uncompleted i
Slide 8: Synergistic Gwinville Consolidation – June 2023
Synergistic Gwinville Consolidation – June 2023 $3.2 MM PDP Acquisition Acquisition Lands SOU Land • 2.3 MMcfe/d WI, 99% natural gas, 98% WI Acquisition Wells • Low decline (8%), ~ 8,500 net acres HBP SOU Operated Wells • 204 producing wells, 35 standing (low ARO) • Significant field synergies with
Slide 9: Opportunity Rich Consolidation Fairway
Opportunity Rich Consolidation Fairway Strategic Advantage Consolidation & Development Focus Area • Self-generated opportunities utilizing proprietary database • Digital workflow has proven management successful in previous companies Oklahoma • Significant amount of work completed in advance on mult
Slide 10: Strong Fundamentals for the Future of U.S. Natural Gas Pricing
Strong Fundamentals for the Future of U.S. Natural Gas Pricing Positioning Southern for the Future of Natural Gas Significant Incremental Demand in next 5 years • Meaningful residential, commercial & industrial power demand growth • Significant power market share gain from planned coal & nuclear ret
Slide 11: Positioning Southern in a Strengthening U.S. Gas Price Environment
Positioning Southern in a Strengthening U.S. Gas Price Environment The Growing U.S. Natural Gas Supply & Demand Imbalance 120 • U.S. natural gas demand expected to grow by over 20 Bcf/d by 2027 Existing infrastructure 115 No Current • Demand growth forecasted to be driven by a huge increase in LNG e
Slide 12: Macro Backdrop – U.S. Gas Demand
Macro Backdrop – U.S. Gas Demand Demand Driver - Expanding LNG Export Proximity to LNG U.S. LNG Export Capacity • Gulf Coast LNG export additions are expected to add 11 Bcf /d in the next 5 Export (Bcf/d) 35 Total Potential years, a 75% increase from today’s levels AR Other Certificated 30 Rio Grand
Slide 13: Investment Thesis
Investment Thesis Why Invest in Southern Energy? Experience TEAM HAS 9 YEARS OPERATING HISTORY IN THE U.S. GULF COAST AREA • Highly experienced management team with proven track record • Extensive operations experience in southeastern U.S. core area SOUTHERN IS 6% INSIDER OWNED (NON-DILUTIVE BASIS)
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: Southern Energy Asset Base in Mississippi
Southern Energy Asset Base in Mississippi > 38,000 Acres ~ 2,900 boe/d $142.5 MM < $7.00/boe > 98% held by production (HBP) Current Production (1) 2P PV10 (2) All-In Lifting/Processing Cost Mechanicsburg Production Magee Mississippi • Liquids rich; > 25 bbl/MMcf oil & NGL gas 270 60 • Field producti
Slide 17: 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 Wilcox 1 0.0 <
Slide 18: 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 Jeff
Slide 19: Board of Directors
Board of Directors Experienced and talented leadership to guide the Execution of Southern Energy’s Business Plan Board of Directors Ian Atkinson, P. Eng., ICD.D Bruce Beynon, P. Geol. (Chairman) Former founder and EVP of Athabasca Oil Former EVP, Exploration and Corporate Development of Baytex Energ
Slide 20: 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 Core Values at Southern – Not Buzz Words Central Mississippi Operations Team Environme
Slide 21: Disclaimers
Disclaimers General The information contained in this presentation (the “Presentation”) has been provided solely for informational 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
Slide 22: 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, share price, investment yield, debt, NPV1
Slide 23: Disclaimers
Disclaimers Analogous Information This Presentation provides certain information relating to properties in close proximity to the Company's properties, which is "Analogous Information" as defined by applicable securities laws. This analogous information is derived from publicly available information
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