Southern Energy Corp, an established producer with natural gas and light oil assets in Mississippi, has announced that, further to the announcement of the Joint Venture Wellbore Participation Agreement with a strategic partner on May 26, 2026, the Company has spudded the Terrible Creek 21-2 #2 Cotton Valley test well in the Williamsburg Field on August 11, 2026. This is the first of two farm-out commitment wells planned for drilling this year whereby Southern will pay roughly 50% of the gross drill and completion costs of US$3.9 million per well, corresponding to 50% working interest. The Company expects the well to be drilled to a planned total depth of approximately 19,000 feet. Completion and testing operations are expected to commence after the drilling rig has been moved off site.
Ian Atkinson, President and Chief Executive Officer of Southern, commented: 'We are thrilled to break ground on the Cotton Valley test well at Williamsburg, marking an exciting next step in unlocking value across our core assets. Executing this farm-out allows us to efficiently evaluate high-impact prospective targets while maintaining disciplined capital allocation. Given the recent success of competitor drilling offsetting our acreage, we expect success at Williamsburg to initiate growth in the oil and liquids weighting at Southern.'
Appointment of Automated Market Maker
Southern has engaged ICP Securities Inc. ('ICP') to provide automated market making services, including the use of its proprietary algorithm, ICP Premium® in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable laws.
ICP will be paid a monthly fee of C$7,500, plus applicable taxes. The agreement between the Company and ICP is effective from August 10, 2026, and will continue for four (4) months (the “Initial Term”) and shall be automatically renewed for subsequent one (1) month terms (each month called an “Additional Term”) unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term or an Additional Term, as applicable. There are no performance factors contained in the agreement and no stock options or other compensation in connection with the engagement. ICP and its clients may acquire an interest in the securities of the Company in the future.
ICP is an arm’s length party to the Company. ICP’s market making activity will be primarily to correct temporary imbalances in the supply and demand of the Company’s shares. ICP will be responsible for the costs it incurs in buying and selling the Company’s shares, and no third party will be providing funds or securities for the market making activities.
Ian Atkinson, President and Chief Executive Officer of Southern, further commented: 'As Southern continues to advance its business plan to grow production and cash flow and to expand its shareholder base, we believe it is important that our market presence reflects the underlying progress being made by the Company. We have engaged ICP to take a proactive step to support trading for shareholders, improve quote quality, and help mitigate temporary imbalances in the supply and demand of our shares. This is part of our broader commitment to improving transparency, liquidity, and long-term value creation for Southern shareholders.'
Source: Southern Energy
