Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Oil & Gas Producer Gets Down Cost To Drill, Complete Well

Source: Stephane Foucaud

 

June 5, 2023 (Investorideas.com Newswire) Despite this progress, the Canadian firm will likely wait for the Henry Hub gas price to rebound before continuing its well work, noted an Auctus Advisors report.

Southern Energy Corp. (SOU:TSX; SOUTF:OTCMKTS; SOUC:AIM) lowered its well drilling and completion costs, but to return to growth, it still needs the Henry Hub gas price over US$3 per thousand cubic foot (US$3/Mcf), reported Auctus Advisors analyst Stephane Foucaud in a May 30 research note. The Canadian oil and gas producer can hold off until the price reaches this point.

"With available undrawn credit facilities of about US$14.5 million (US$14.5M) and corporate cash flow break-even of about US$1.80-1.90/Mcf (Henry Hub), the company is well positioned to wait for a rebound in gas prices," Foucaud wrote.

Possible 567% Gain

Auctus maintained its target price of £1.60 per share on Southern Energy, currently trading at about £0.24 per share.

The difference between these two prices implies a large potential return for investors of 567%.

Well Costs Reduced

Southern has four already-drilled wells ready for completion: two Lower Selma Chalk laterals, one City Bank lateral, and one Upper Selma Chalk lateral, Foucaud relayed. Now, after having effected cost efficiencies, it will run the company about US$3.4M to complete each well.

As such, it is expected Southern will hold off until the Henry Hub gas price, currently about US$2.25/Mcf, exceeds US$3/Mcf, purported Foucaud. Completion is now forecasted for potentially Q4/23.

"The acquisition of the Gwinville assets from PetroTx has provided Southern with additional access to the Florida Gas Transmission System that provides access to a market with much higher gas price premium than achieved by Southern in the past," Foucaud pointed out.

First Quarter in Brief

Also, in his report, Foucaud noted that during Q1/23, Southern produced 2,607 barrels of oil equivalent per day, as expected.

As of the quarter's end, March 31, 2023, the energy company had about US$12M of cash and US$19M of net debt, including working capital.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More





Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on Investorideas.com