Exploration Co Drills 3 Wells Close to Henry Hub Terminal

Southern Energy Corp. (SOU: TSXV, AIM: SOUC) has announced the spudding of its three Selma Chalk horizontal wells in the Gwinville field targeting natural gas.

The three wells will be batch drilled from the same surface pad site for operational and capital efficiencies, the company outlined. Subject to successful completion, first production from the wells is expected in April this year, Southern Energy Corp. highlighted.

“We are delighted to report that the team has commenced operations on the Gwinville Selma Chalk horizontal well program,” Ian Atkinson, the president and chief executive officer of Southern Energy Corp, said in a company statement.

“These wells will have a short payback and are strategically located in proximity to the Henry Hub terminal which attracts premium regional gas pricing,” Atkinson added in the statement.

“The Gwinville program is expected to have an immediate positive impact for the company and provide additional near-term cash flow to the business during a period of strong commodity prices, and we look forward to updating shareholders as the program progresses,” the Southern Energy Corp. president and CEO went on to say.

In December last year, Southern Energy Corp. revealed that Southern Energy Operating LLC, an operating subsidiary of the company, had contracted Energy Drilling Company’s Rig #15 for the upcoming drilling program at its Gwinville asset in central Mississippi.

In a company statement at the time, Southern Energy Corp. highlighted that it had received drilling permits for three horizontal wells targeting natural gas in the Selma Chalk Formation and noted that the rig was expected to move to location in late December 2021.

Southern Energy Corp. describes itself as a natural gas exploration and production company. The business 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, according to its website.

Southern Energy Corp.’s interests are focused on conventional, low-decline, long-life assets in fields with an abundance of infrastructure, low operating costs and premium commodity pricing, its site states. The company has controlling operated interests in properties covering approximately 30,000 net acres in the Mississippi Interior Salt Basin (MISB), which includes its two principal properties - Mechanicsburg and Mount Olive East - and approximately 3,000 net acres in the Black Warrior Basin, its site highlights.

The MISB is the most productive basin in the north-eastern Gulf Coast Region, having produced more than 1.5 billion barrels of oil and approximately 6.5 trillion cubic feet of gas, Southern Energy Corp. points out.

To contact the author, email andreas.exarheas@rigzone.com