Southern Energy Corp (TSX-V:SOU, AIM:SOUC, OTC:MAXMD), the producing oil and gas group, revealed that it increased its earnings in full-year 2021 and reduced its debt as the Mississippi-focused firm continues to build a strong foundation for growth.
In a statement reporting fourth-quarter and full-year figures to December 31, 2021, the oiler said net earnings for the 12 months had come in at US$10.1 million, compared to a net loss of US$7.8 million in 2020.
In the final three months of the year, the company posted net earnings of US$3.3 million, up from US$2.9 million in Q4 2020.
Output for the year came in at 12,592 thousand cubic feet equivalent per day (Mcfe/d), with 2,099 barrels of oil equivalent per day (boe/d) with 92% of that natural gas, representing a 2% decrease from 2020, the company said.
Petroleum and natural gas sales were US$7.2 million in Q4 2021 and US$19.9 million for the full year, an increase of 107% and 91% from the same periods in 2020, respectively.
READ: Southern Energy reveals selected highlights of its year-end independent oil and gas reserves NSAI Report; provides operational update
CEO of Southern Energy Ian Atkinson said in a statement that the Q4 and full year numbers were "demonstrative of the significant progress achieved this year and of the quality" of the company's asset base and strategy.
"In particular, we are pleased to report substantially increased earnings of $10.1 million in a year which saw Southern Energy Corp (TSX-V:SOU, AIM:SOUC, OTC:MAXMD)'s shares admitted to trading on AIM and the raising of additional equity funding from both Canada and the UK to support our ongoing drilling campaign at Gwinville," he said.
"The team at Southern have worked relentlessly this year, driving substantial value for the company as well as providing robust foundations for expansion.
"With the results of our Gwinville wells expected in May, we look forward to updating shareholders on operational developments and continue striving towards our substantial growth ambitions for 2022 and beyond."
At the Gwinville field in the Mississippi interior salt basin (MISB), Southern has now completed drilling on the three well horizontal padsite and expects initial production from the wells in May this year.
Post year-end, the company has also disposed of all its properties in the Smackover cash generating unit (CGU) for net proceeds of US$0.8 million and in April, has agreed a second amendment to its senior secured term loan of up to US$8.5 million.
Its net debt has reduced by US$8.7 million in the fourth quarter and US$16.6 million for the full year to stand at US$6.4 million as at December 31, 2021.
Southern Energy Corp (TSX-V:SOU, AIM:SOUC, OTC:MAXMD) is focused on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas.
Contact the author at giles@proactiveinvestors.com