Southern Energy Corp (TSX-V:SOU, AIM:SOUC, OTC:MAXMD) told investors that third-quarter production in Mississippi averaged 2,814 barrels oil equivalent per day, up 6% on the preceding quarter.
The quarter-on-quarter growth was driven by the company’s Gwinville acquisition, and, it noted that the current output was measured at 2,900 boepd.
At Gwinville, the company is advancing programs to install additional infrastructure to further enhance production operations and reduce costs.
Also, the company now intends to re-bid for completion services for four high quality but uncompleted horizontal wells at Gwinville following the recent recovery in US natural gas prices, above $3 per million British thermal units (MMBtu).
"We are excited with the progress we have made with the Gwinville acquisition integration, realizing quick and incremental value for shareholders through operating cost reductions and now through the start of work to increase production on the asset," chief executive Ian Atkinson said in a statement.
“At the time of pausing our capital program in Q1 2023, in response to the price of gas reaching $2.00/MMBtu, we had made a significant investment including four drilled uncompleted horizontal wells, incremental Company owned field compression, wellhead facilities, Company owned water disposal capacity, and well casing for future drilling.
“This pre-investment positions Southern to expedite our corporate growth in light of the recent improvements in the price of U.S. natural gas and the anticipated drop in the cost of services.
“We look forward to updating the market further as we make key operational decisions in light of resurgent US natural gas prices."