Southern Energy Corp‘s (AIM:SOUC, TSX-V:SOU, FRA:0M11) second-quarter results confirmed production of around 6% as it marked consistent and continuous operations, compared to last year’s shutdown amidst the pandemic.
Production in the quarter averaged 2,078 barrels oil equivalent per day, comprising 92% natural gas, resulting in a 3% increase for the six months ended June 30.
At the same time, realised prices are up versus the 2020 nadir; quarter-on-quarter Southern’s oil price was up 91% to US$77.71 per barrel whilst gas was up 65% at US$3.35 per thousand cubic feet.
“I am pleased with our results in the second quarter, as we generated positive adjusted funds flow from operations, completed our AIM listing, and successfully bolstered the balance sheet through our debt refinancing, positioning Southern well to continue executing our organic and acquisition-based growth strategy,” said chief executive Ian Atkinson.
“Our proven financial discipline and commitment to long-term sustainability are features that we believe will set Southern apart as we strive to introduce the story to a host of new investors globally heading into a period of significant growth for the company.”
Operating expenses averaged US$1.03 per unit in the quarter, and was US$1.02 for the six month period, with operating netbacks marked at US$1.70 per Mcf for the quarter and US$1.80 for the half.
Southern said it generated US$749,000 of adjusted funds from operations, including US$400,000 of expenses tied to the company’s listing on London’s AIM market. For the first half, the tally was US$2mln.
Southern Energy shares joined AIM in August alongside its prior listing in Canada.
The company noted its improved liquidity and strategic flexibility after it retired a credit facility, reducing its debt balance to US$5.5mln from US$12.7mln.