18th Apr 2023 17:26
(Alliance News) - Southern Energy Corp on Tuesday reported increased petroleum and natural gas sales and adjusted funds flow for 2022.
Southern is an oil and gas producer headquartered in Alberta, Canada, with interests in southeastern US properties mainly located in Mississippi.
The company reported petroleum and natural gas sales of USD9.8 million in the fourth quarter of 2022, up 37% from USD7.2 million a year prior. In all of 2022, the sales jumped to USD45.2 million from USD19.9 million.
Adjusted funds flow operations increased to USD3.1 million of in the fourth quarter from USD1.4 million a year ago. For 2022, adjusted funds flow grew jumped to to Southern reported USD17.2 million from just USD2.9 million a year ago.
However, Southern also reported that net earnings had decreased from USD3.3 million for the three months ended December 31, 2021 to USD1.7 million for the same period in 2022.
For the twelve months ended on the same date, net earnings decreased to USD9.3 million from USD10.1 million.
Southern also highlighted its successful closure of a USD17.5 million bought deal prospectus offering in Canada and a USD13.5 million UK placing. This raised aggregate gross proceeds of USD31.0 million.
The company ended the fourth quarter of 2022 with positive net cash of USD13.4 million, swung from net debt of USD6.4 million.
97% of Southern's leases contain producing wells and are "held by production". In other words, the company is not obligated to carry out additional drilling or operations to maintain its existing interest.
Chief Financial Officer Calvin Yau said: "2022 was a record year for Southern thanks to strong production from our base assets and the Gwinville appraisal program along with the continued strength of natural gas spot and basis pricing premiums to NYMEX in Southeastern US, building a solid foundation for Southern as we enter 2023."
He added: "The company's long-term strategy remains consistent, with an unwavering commitment to environmental, social and governance principles that support the continued development and consolidation of prolific reservoirs that are outside of the more expensive shale basins."
Yau further stated that Southern would continue to prioritise financial discipline through the ongoing enhancement of operations and evaluation of opportunities to reduce costs.
Shares in Southern were up by 4.0% at 19.50 pence on Tuesday afternoon in London.
By Emma Curzon, Alliance News reporter
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