Latest news with #SouthernEnergy
Yahoo
27-05-2025
- Business
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Southern Energy Corp. Announces First Quarter 2025 Financial and Operating Results
CALGARY, AB / / May 27, 2025 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC), an established producer with natural gas and light oil assets in Mississippi, announces its first quarter financial and operating results for the three months ended March 31, 2025. Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements and related management's discussion and analysis (the "MD&A") for the three months ended March 31, 2025, which are available on the Company's website at and have been filed under the Company's profile on SEDAR+ at All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted. FIRST QUARTER 2025 HIGHLIGHTS Petroleum and natural gas sales of $5.1 million during Q1 2025, an increase of 7% from the same period in 2024, largely due to the increase in natural gas pricing Average realized natural gas and oil prices for Q1 2025 of $4.14/Mcf and $71.19/bbl, compared to $2.53/Mcf and $74.86/bbl in Q1 2024. Southern achieved an average premium of $0.49/Mcf (approximately 13%) above the NYMEX HH benchmark in Q1 2025 Average production of 12,808[1] Mcfe/d (2,135 boe/d) (96% natural gas) during Q1 2025, a decrease of 29% from the same period in 2024 Generated $0.9 million of Adjusted Funds Flow from Operations[2] in Q1 2025 ($0.00 per share basic and diluted), excluding $0.3 million of one-time transaction costs Net loss of $3.9 million ($0.02 per share basic and diluted), compared to a net loss of $3.1 million in Q1 2024 Entered into various amendments to the Company's senior secured term loan which included an extension to the pausing of monthly repayments of principal to January 31, 2025 and a reduction of the repayment required from the eighth amendment to $1.45 million as at January 31, 2025, which the Company paid. Amended the monthly repayment of the principal amount outstanding calculation beginning on February 28, 2025 and amended the asset coverage ratio down to 1.5x in 2025 as well as reducing the Tranche B capacity to $5.0 million (see "Liquidity and Capital Resources - Credit Facility" in the March 31, 2025 MD&A for full details of the amendment) SUBSEQUENT EVENTS On April 8, 2025, Southern closed an equity financing raising aggregate gross proceeds of $5.0 million (approximately £3.9 million, C$7.2 million) through the issuance of a total of 102,482,673 new units (see "Shareholders' Equity - Share Capital" in the March 31, 2025 MD&A for full details) On April 8, 2025, Southern converted the remaining convertible debentures in the amount of $3.1 million into 62,759,286 new units and issued 1,627,170new units for all accrued and unpaid interest (see "Liquidity and Capital Resources - Debenture Financing" in the March 31, 2025 MD&A for full details of the conversion) Ian Atkinson, President and Chief Executive Officer of Southern, commented: "Southern entered 2025 with renewed momentum, benefiting from both improved market conditions and the completion of our $5.0 million financing in April 2025. Natural gas prices showed early signs of recovery in the quarter, supported by strengthening demand fundamentals, from a colder than expected winter and tightening supply. Robust natural gas pricing in Q1 2025 enabled Southern to achieve a $0.49/Mcf (13%) premium to the Henry Hub benchmark price. We remain encouraged by the macro outlook with strong demand forecasts, tied to lower storage levels compared to last year. Feed gas demand from U.S. LNG export facilities continues to rise, with the Golden Pass terminal and pipeline expected to begin receiving gas this year. Domestic consumption is also strengthening, led by growing power demand from data centers and widespread electrification of the economy. Combined with continued capital discipline across the upstream sector, we believe these dynamics will support a tighter U.S. natural gas balance throughout the year, which we aim to capitalise on. With the recent financing complete and natural gas prices firming, we are excited to resume field operations, beginning with the first of three drilled but uncompleted wells in our Gwinville area. We have secured key services and will shortly commence operations on the 13-13 #2 Lower Selma Chalk horizontal well, with first production expected in June. Southern remains committed to creating long-term shareholder value through disciplined capital deployment, operational efficiency, and strategic advantages of our asset base. With improving market tailwinds and a clear path to near-term production growth, we are optimistic about the opportunities that lie ahead in 2025." Financial Highlights Three months ended March 31, (000s, except $ per share) 2025 2024 Petroleum and natural gas sales $ 5,121 $ 4,794 Net loss (3,879 ) (3,121 ) Net loss per share Basic (0.02 ) (0.02 ) Fully diluted (0.02 ) (0.02 ) Adjusted funds flow from operations (1) 629 2,162 Adjusted funds flow from operations per share (1) Basic 0.00 0.01 Fully diluted 0.00 0.01 Capital expenditures and acquisitions 183 269 Weighted average shares outstanding Basic 169,386 166,480 Fully diluted 169,386 166,480 As at period end Basic common shares outstanding 169,386 166,497 Total assets 51,237 61,865 Non-current liabilities 8,915 24,341 Net debt (1) $ (24,145 ) $ (25,274 ) Note: See "Reader Advisories - Specified Financial Measures". Operations Update The Company continues to progress its plans to complete its first Gwinville drilled and uncompleted ("DUC") well and has finalized procuring key services. Field operations are scheduled to commence on the 13-13 #2 Lower Selma Chalk horizontal well in the next few weeks, and Southern expects first production from the well in June 2025. Timing for the second and third horizontal completions (one Lower Selma Chalk and one City Bank) will depend on the results of the first completion operation, but the Company expects to have all three wells completed before the end of the year. The Company has also advised that it has recently elected to voluntarily shut-in approximately 400 boepd of production from the Mechanicsburg and Greens Creek Fields due to an ongoing transportation dispute with a third party pipeline operator. On April 29, 2025, Southern was pleased to receive confirmation that the pipelines subject to the dispute are regulated by the Federal Energy Regulatory Commission ("FERC") and the third party submitted the initial filing to the regulator which includes setting maximum allowable transportation rates, subject to FERC review and approval. Southern will work closely with FERC staff to expedite the rate determination process and, in parallel, will continue to engage with the pipeline operator to pursue an agreement on an equitable fee structure that would allow the resumption of gas flows from these assets while the regulatory process continues. Outlook Southern has taken decisive steps to strengthen its financial position, including the successful completion of the equity financing in April 2025, along with the conversion of the convertible debentures, and the restructuring of financial covenants with support from its lender, effective from Q1 2025. These strategic actions, combined with the fixed-price swap contract of 5,000 MMBtu/d at $3.40/MMBtu through December 2026, provide the necessary financial stability to execute the capital program with confidence. Southern will continue to monitor NYMEX prices and the basis differential prices and is prepared to hedge additional volumes in a tactical manner going forward. We appreciate the continued support of our stakeholders and look forward to providing further updates on our operational progress as we work to drive long-term shareholder value. Qualified Person's Statement Gary McMurren, Chief Operating Officer, who has over 24 years of relevant experience in the oil industry, has approved the technical information contained in this announcement. Mr. McMurren is registered as a Professional Engineer with the Association of Professional Engineers and Geoscientists of Alberta and received a Bachelor of Science degree in Chemical Engineering (with distinction) from the University of Alberta. For further information about Southern, please visit our website at or contact: Southern Energy Corp. Ian Atkinson (President and CEO) +1 587 287 5401 Calvin Yau (CFO) +1 587 287 5402 Strand Hanson Limited - Nominated & Financial Adviser +44 (0) 20 7409 3494 James Bellman / Rob Patrick / Edward Foulkes Tennyson Securities - Broker +44 (0) 20 7186 9033 Peter Krens / Jason Woollard Camarco +44 (0) 20 3757 4980 Owen Roberts / Fergus Young / Tomisin Ibikunle About Southern Energy Corp. Southern Energy Corp. is a natural gas exploration and production company characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to premium commodity pricing in North America. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. Our management team has a long and successful history working together and have created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields and the utilization of re-development strategies utilizing horizontal drilling and multi-staged fracture completion techniques. READER ADVISORIES MCFE Disclosure. Natural gas liquids volumes are recorded in barrels of oil (bbl) and are converted to a thousand cubic feet equivalent (Mcfe) using a ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Natural gas volumes recorded in thousand cubic feet (Mcf) are converted to barrels of oil equivalent (boe) using the ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Mcfe and boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf is based in an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared with natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf may be misleading as an indication of value. Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with NI 51-101. Boe may be misleading, particularly if used in isolation. Product Types. Throughout this press release, "crude oil" or "oil" refers to light and medium crude oil product types as defined by NI 51-101. References to "NGLs" throughout this press release comprise pentane, butane, propane, and ethane, being all NGLs as defined by NI 51-101. References to "natural gas" throughout this press release refers to conventional natural gas as defined by NI 51-101. Abbreviations. Please see below for a list of abbreviations used in this press release. 1P total proved2P proved plus probablebbl barrelsbbl/d barrels per daybcf/d billion cubic feet per dayboe barrels of oilboe/d barrels of oil per dayMcf thousand cubic feet Mcf/d thousand cubic feet per dayMMcf million cubic feet MMcf/d million cubic feet per dayMcfe thousand cubic feet equivalent Mcfe/d thousand cubic feet equivalent per dayMMboe million barrels of oilMMBtu million British thermal unitsMMBtu/d million British thermal units per dayNI 51-101 National Instrument 51-101 Standards of Disclosure for Oil and Gas ActivitiesNYMEX New York Mercantile ExchangePDP proved developed producing Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "continue", "evaluate", "forecast", "may", "will", "can", "target" "potential", "result", "could", "should" or similar words suggesting future outcomes or statements regarding an outlook (including negatives and variations thereof). Forward-looking information in this press release may include, but is not limited to statements concerning the Company's asset base including the development of the Company's assets, positioning, oil and natural gas production levels, the Company's anticipated operational results, Southern's growth strategy and the expectation that it will continue to enhance shareholder value, forecasted natural gas pricing, Southern's ability to re-initiate growth in deploying the net proceeds from the equity financing on capital expenditures, drilling and completion plans and casing remediation activities, expectations regarding commodity prices and service costs, expectations regarding increased demand for gas (including demand stemming from artificial intelligence data centers, vehicle electrification and certain export facilities) performance characteristics of the Company's oil and natural gas properties, the Company's expectation to continue actively reducing and optimizing operating costs, general and administrative expenses and maintenance capital to maximizenetbacks, the Company's hedging strategy and execution thereof, the ability of the Company to achieve drilling success consistent with management's expectations,the Company's expectations regarding completion of the three remaining DUCs and the drilling operations in the Mechanicsburg Field (including the timing thereof and anticipated costs and funding), the effect of market conditions on the Company's performance and expectations regarding the use of proceeds from all sources including the senior term loan. Statements relating to "reserves" and "recovery" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Southern, including, but not limited to, the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of drilling rigs, facilities and pipelines, the geological characteristics of Southern's properties, the characteristics of the Company's assets, the successful integration of acquired assets into the Company's operations, the Company's ability to comply with ongoing obligations under the senior term loan and other sources of financing, the successful application of drilling, completion and seismic technology, the benefits of current commodity pricing hedging arrangements, Southern's ability to enter into future derivative contracts on acceptable terms, Southern's ability to secure financing on acceptable terms, prevailing weather conditions, prevailing legislation, as well as regulatory and licensing requirements, affecting the oil and gas industry, the Company's ability to obtain all requisite permits and licences, prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products, royalty regimes and exchange rates, the impact of inflation on costs,the application of regulatory and licensing requirements, the Company's ability to obtain all requisite permits and licences, the availability of capital, labour and services, the creditworthiness of industry partners, the Company's ability to source and complete asset acquisitions, and the Company's ability to execute its plans and strategies. Although Southern believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Southern can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to production, costs and expenses, regulatory risks, and health, safety and environmental risks), constraint in the availability of labour, supplies, or services, the impact of pandemics, commodity price and exchange rate fluctuations, geo-political risks, political and economic instability, the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for the Company's products and/or otherwise adversely affects the Company, wars (including the Russo-Ukrainian war and the Israel-Hamas conflict), hostilities, civil insurrections, inflationary risks including potential increases to operating and capital costs, changes in legislation impacting the oil and gas industry, including but not limited to tax laws, royalties and environmental regulations (including greenhouse gas emission reduction requirements and other decarbonization or social policies and including uncertainty with respect to the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada)), the Company's ability to meet its financial obligations and covenants, adverse weather or break-up conditions, and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Southern's MD&A for the period ended December 31, 2024 and AIF for the year ended December 31, 2024, which are available on the Company's website at and filed under the Company's profile on SEDAR+ at The forward-looking information contained in this press release is made as of the date hereof and Southern undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Future Oriented Financial Information. This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's capital expenditures, general and administrative expenses, inorganic growth, hedging, natural gas pricing, netbacks, royalty rates and prospective results of operations and production, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Southern's future business operations. Southern and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Southern disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Southern's guidance. The Company's actual results may differ materially from these estimates. Specified Financial Measures. This press release provides various financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"), including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. These specified financial measures may not be comparable to similar measures presented by other issuers. Southern's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Adjusted Funds Flow from Operations, adjusted working capital and net debt are not recognized measures under IFRS. Readers are cautioned that these specified financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS. These specified financial measures provide additional information that management believes is meaningful in describing the Company's operational performance, liquidity and capacity to fund capital expenditures and other activities. Please see below for a brief overview of all specified financial measures used in this release and refer to the Company's MD&A for additional information relating to specified financial measures, which is available on the Company's website at and filed under the Company's profile on SEDAR+ at "Adjusted Funds Flow from Operations" (non-IFRS financial measure) is calculated based on cash flow from operative activities before changes in non-cash working capital and cash decommissioning expenditures. Management uses adjusted funds flow from operations as a key measure to assess the ability of the Company to finance operating activities, capital expenditures and debt repayments. "Adjusted Funds Flow from Operations per Share" (non-IFRS financial measure) is calculated by dividing Adjusted Funds Flow from Operations by the number of Southern shares issued and outstanding. "Net Debt" (capital management measure) is monitored by management, along with adjusted working capital, as part of its capital structure in order to fund current operations and future growth of the Company. Net debt is defined as long-term debt plus adjusted working capital surplus or deficit. Adjusted working capital is calculated as current assets less current liabilities, removing current derivative assets/liabilities, the current portion of bank debt, and the current portion of lease liabilities. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. [1] Comprised of 81 bbl/d light and medium crude oil, 5 bbl/d NGLs and 12,292 Mcf/d conventional natural gas [2] See "Reader Advisories - Specified Financial Measures" SOURCE: Southern Energy Corp. View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
14-05-2025
- Business
- Associated Press
Southern Energy Corp. Provides Operations Update
CALGARY, AB / ACCESS Newswire / May 14, 2025 / Southern Energy Corp. ('Southern' or the 'Company') (TSXV:SOU)(AIM:SOUC), an established producer with natural gas and light oil assets in Mississippi, continues to progress its plans to complete its first Gwinville drilled and uncompleted ('DUC') well and has finalized procuring key services. Field operations are scheduled to commence on the 13-13 #2 Lower Selma Chalk horizontal well in the next few weeks, and Southern expects first production from the well during June 2025. This will be the Company's first of three planned DUC completions at Gwinville. Unrelated to Southern's current growth plans at Gwinville, Southern is involved in an ongoing dispute in which it is bringing a claim regarding what it believes are excessive transportation fees being charged by a third party midstream company associated with the Mechanicsburg and Green's Creek fields. On April 29, 2025, Southern was pleased to receive confirmation that the pipelines subject to the dispute are regulated by the Federal Energy Regulatory Commission ('FERC'). The third party made its initial response filing to the regulator which includes setting maximum allowable transportation rates, subject to FERC review and approval. Southern will work closely with FERC staff to expedite the rate determination process and, in parallel, will continue to engage with the pipeline operator to pursue an agreement on an equitable fee structure. In the interim, Southern has elected to voluntarily shut-in approximately 400 boepd of production from the Mechanicsburg and Greens Creek Fields to avoid increasing the quantum of disputed fees. This accounts for approximately 20% of Southern's production on a volumetric basis, but only approximately 10% of the Company's operating income from Q1 2025. This will not impact the rest of Southern's operations or the proposed DUC completions in Gwinville. For further information about Southern, please visit our website at or contact: About Southern Energy Corp. Southern Energy Corp. is a natural gas exploration and production company characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to premium commodity pricing in North America. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. Our management team has a long and successful history working together and have created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields and the utilization of re-development strategies utilizing horizontal drilling and multi-staged fracture completion techniques. READER ADVISORY Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a barrel of oil equivalent ('boe') using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Boe may be misleading, particularly if used in isolation. Forward Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project', 'budget', 'continue', 'evaluate', 'forecast', 'may', 'will', 'can', 'target' 'potential', 'result', 'could', 'should' or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to statements concerning the Company's capital program for the remainder of 2025, including the completion of a DUC and the timing of production in respect thereof, the Company's natural gas transmission rate dispute with a third-party pipeline operator and the Company's actions pending the resolution of such dispute. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Southern. Although Southern believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Southern can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including other risks are set out in Southern's MD&A and annual information form for the year ended December 31, 2024, which are available on the Company's website at and filed under the Company's profile on SEDAR+ at The forward-looking information contained in this press release is made as of the date hereof and Southern undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE: Southern Energy Corp. press release
Yahoo
09-05-2025
- Business
- Yahoo
DevvStream Affiliate Monroe Sequestration Partners Signs Agreement with Southern Energy to Anchor Major Carbon Capture Project in Louisiana
DevvStream's October 2024 acquisition of 50% of the common interests in Monroe Sequestration Partners directly connects the Company to one of the Gulf Coast's most strategic carbon storage and clean fuel sectors Calgary, Alberta--(Newsfile Corp. - May 8, 2025) - DevvStream Corp. (NASDAQ: DEVS) ("DevvStream" or the "Company"), a leading carbon management firm specializing in the development, investment, and sale of environmental assets, today announced that Monroe Sequestration Partners ("Monroe"), in which DevvStream acquired a 50% common-interest stake in October 2024, has signed a Collaboration Agreement (the "Agreement") with Southern Energy, a Wyoming-based clean fuels company proposing the development of a $1 billion (USD) methanol and sustainable aviation fuel ("SAF") facility in Louisiana. The Agreement outlines a strategic partnership in which Monroe would provide permanent CO₂ sequestration through its Class VI storage site, expected to be operational in 2027, while Southern Energy would capture emissions from its planned biomass-to-fuel facility, targeting production in 2028. The parties aim to generate high-quality carbon credits and support compliance with global decarbonization mandates in aviation and maritime transport industries. The Company anticipates entering into additional definitive binding agreements reflecting the terms outlined in the Agreement during Q2 of this year. "Monroe's combination of Class VI storage readiness, local access, and commercial reach positions it among the most advanced carbon storage developers in the country," said Carl Stanton, Chairman of DevvStream. "Louisiana is quickly becoming the carbon capture capital of the U.S., and this agreement underscores Monroe's leadership in delivering durable, monetizable carbon removal solutions." About Southern Energy's Project Southern Energy plans to build a biomass-to-fuel facility in Louisiana to produce low-carbon methanol and SAF with an anticipated project cost of approximately $1 billion. Using proven syngas technology and a large-scale regional feedstock strategy, the facility is designed to serve both maritime and aviation sectors. Integrated carbon capture is expected to drive exceptionally low lifecycle carbon intensity ("CI") scores while generating 45Q tax credits and other monetizable environmental assets. The facility is expected to benefit from Northern Louisiana's location within the Southern Wood Basket—the largest biomass-producing region in North America. According to market studies, the North Louisiana-South Arkansas corridor ranks among the top five U.S. markets for pulpwood and forest residual availability, providing secure, scalable access to sustainably sourced feedstock. "Southern Energy's platform aligns directly with recent federal initiatives supporting clean energy infrastructure," added Sunny Trinh, CEO of DevvStream. "The combination of permanent sequestration, proven fuel tech, and policy momentum makes this a standout project." Strategic Importance of Louisiana Louisiana is emerging as a national hub for carbon capture and storage ("CCS"). As one of only four states with U.S. EPA-approved primacy over Class VI wells, it can independently permit carbon storage projects—potentially cutting years off timelines. According to Bloomberg (April 2025), over a dozen CCS projects are already underway across the state, backed by more than $4.5 billion (USD) in anticipated investment. Recent federal policy changes have the potential to increase this momentum. The current administration's first 100 days brought a sweeping realignment around CCS—executive orders prioritized permitting, expanded 45Q incentives, and encouraged private-sector deployment. Monroe's early position and deep ties in Louisiana provide a unique potential advantage as demand for durable carbon removal grows. Strategic Implications for DevvStream For DevvStream, this Agreement has the potential to strengthen its infrastructure-backed carbon credit pipeline and to deepen its exposure to permanent sequestration revenues. As co-owner of Monroe, DevvStream is expected to support project development, credit packaging, and long-term monetization efforts. This Agreement also reinforces DevvStream's broader investment strategy: leveraging partnerships with industrial emitters to scale environmental asset generation under favorable policy, geographic, and commercial conditions. About DevvStream Founded in 2021, DevvStream is a leading carbon management firm specializing in the development, investment, and sale of environmental assets, energy transition, and innovative carbon management solutions. The Company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health. With a diverse approach to energy transition and carbon markets, DevvStream operates across three strategic domains: (1) an offset portfolio consisting of nature-based, tech-based, and carbon sequestration credits for immediate sale to corporations and governments seeking to offset their most difficult-to-reduce emissions; (2) project investment, acquisitions, and industry consolidation to extend the company's reach, allowing it to become a full end-to-end solutions provider; and (3) project development, where the company serves as project manager for eligible activities such as EV charging or renewable energy generation in exchange for a percentage of generated credits or I-RECs. For more information, please visit About Monroe Sequestration Partners Monroe Sequestration Partners is a carbon storage development platform based in northeast Louisiana, currently developing a Class VI sequestration facility expected to be operational in 2027. The company enables industrial emitters to meet climate targets through permanent carbon removal and credit generation. About Southern Energy Based in Wyoming, Southern Energy is developing a $1 billion low-carbon fuels facility in Louisiana that will produce methanol and sustainable aviation fuel from biomass using syngas-based technology. The facility is designed to serve global maritime and aviation markets, with integrated carbon capture to deliver low CI scores and premium environmental assets. Cautionary Note Regarding Forward-Looking Statements Certain statements in this news release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events, trends or DevvStream's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. These forward-looking statements include statements regarding DevvStream's intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, DevvStream's ability to continue as a going concern and to realize the benefits of its recently completed business combination, DevvStream's ability to remain listed on Nasdaq, the volatility of the market price and the liquidity of DevvStream's common shares, the impact from future regulatory, judicial, legislative or regulatory changes in DevvStream's industry, the trends in the carbon credit markets, future performance and anticipated financial impacts of certain transactions by DevvStream or others, the growth and value of the global carbon credit or I-REC market traded value, the potential of carbon credits to provide carbon emission reductions and reduce carbon emissions to limit global warming, estimated CO2 capture, sequestration, decarbonization or storage capacities or potentials of different projects in which DevvStream is investing, or DevvStream's opportunity pipeline and the ability of such opportunities to generate I-RECs, carbon credits, or tax credits each year, or the market growth and value of these markets, are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by DevvStream and its management are inherently uncertain and subject to material change. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Any agreement described herein is subject to customary conditions and the ongoing performance of project partners, and there can be no assurance that all contemplated environmental assets will be issued or monetized. Moreover, there can be no assurance that any future agreements described herein will be executed. These forward-looking statements are expressed in good faith, and DevvStream believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and DevvStream is under no obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in filings made by, or to be made by, DevvStream from time to time with the SEC and with the Canadian securities regulatory authorities. This news release is not an offer to sell or the solicitation of an offer to buy, any securities of DevvStream and this news release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in DevvStream. All subsequent written and oral forward-looking statements concerning DevvStream or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Contact ir@ Phone: (408) 365-4348 To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
FID reached for Southern Energy FLNG project in Argentina
Southern Energy SA (SESA) has reached a final investment decision (FID) for the Southern Energy floating liquefied natural gas (FLNG) export project in Argentina. SESA was established in 2024 to develop LNG export capacity from Argentina, and is backed by a group of energy companies. Pan American Energy holds the largest share in the joint venture at 30%, followed by YPF with 25%, Pampa Energía with 20%, Harbour Energy with 15%, and Golar LNG with the remaining 10%. The Southern Energy project will utilise two of Golar LNG's FLNG vessels, Hilli Episeyo and MKII, to be stationed off the coast of Argentina's Río Negro province. It is expected to have a processing and export capacity of approximately six million tonnes per annum (mtpa) of LNG, equivalent to 27 million m3 per day of natural gas. The Hilli Episeyo, with a nameplate capacity of 2.45mtpa, is scheduled to begin operations in 2027. The larger MKII FLNG unit, offering a nameplate capacity of 3.5mtpa, is expected to start up in 2028. Both vessels will process gas sourced from the onshore Vaca Muerta formation in Neuquén, claimed to be the second largest shale gas reserves in the world. Harbour's capital expenditure requirement until commercial operations commence is estimated to be around $100m. The project has also secured key investment incentives under Argentina's RIGI (Régimen de Incentivo para Grandes Inversiones) framework, including the dollarisation of revenues after three years of production. Harbour's Argentina business unit managing director Martin Rueda said: 'Taking final investment decision on Southern Energy marks a significant milestone for Harbour Energy, providing the opportunity to deliver value from our extensive resource position in Argentina. 'As the country's first LNG project under the RIGI, it also marks an important milestone in supporting Argentina's ambition to become a material exporter of natural gas. We look forward to working together with our partners and stakeholders to safely and efficiently deliver this project.' "FID reached for Southern Energy FLNG project in Argentina" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Market Online
05-05-2025
- Business
- The Market Online
Base US Gulf Coast natural gas assets with significant growth opportunities
Southern Energy Corp., a growth focused natural gas producer making waves in the US Gulf Coast has significant growth opportunities with new wells to bold capital moves. Lyndsay Malchuk recently caught up with Ian Atkinson, President and CEO to unpack more of that. LYNDSAY: Southern Energy's core story has always been about value in overlooked basins, but let's fast forward to this year. I mean, what changed in your DNA? For investors not up to speed, how would you define Southern today? Are you looking for opportunity, are you aggressive? Or are you something else entirely? IAN:Good question. You know, and I would start off with people who maybe don't know us well is our DNA has not changed since inception. You're right, we are operating in the US Gulf Coast area. So much different than Canadian companies that some of these viewers and listeners might be more accustomed to. Our strategy has always been to consolidate and develop assets in these areas that have been largely overlooked and frankly, historically undercapitalized by US companies, which even to this day remain very focused on developing shale plays like the Permian and the Marcellus. Maybe to use one of your adjectives, Lyndsay, I would combine two of them and say we're opportunistically aggressive. You know, we've shown we can be patient through poor pricing like we've had in the last 18 months. And we've also shown the markets we can be aggressive like we were back in late 2022, early 2023 when gas prices were $7, $8, $9 US per BTU. We do have the base assets with significant growth opportunities embedded in them. And at the same time, we're always looking for that right fit for that step function change in scale through an opportunistic acquisition. LYNDSAY: Now you're drilling in the heart of the Gulf Coast that we mentioned arguably one of the most strategically placed in premium price markets in North America. So is this a no-brainer or are there risks here that others aren't even talking about then? IAN: It really is the heart of the commodity space in North America. You want to be at the market like this is. I would say it was certainly a purposeful decision to set up shop here in the US Gulf Coast. You know, the combination of that premium commodity pricing and underdeveloped assets in this basin do make it a no brainer for a company like us, which is growth oriented. To expand on that a little bit, due to our assets location and owning the majority of our own infrastructure, we receive sometimes a 10% to 15% premium to NYMEX for our natural gas pricing, which is quite unique, especially when you compare it to the Western Canadian Sedimentary Basin and most other basins in the US where they receive sometimes a quite large discount to NYMEX for their pricing. Also, this jurisdiction is very interesting for us because it is where the LNG or the liquified natural gas export business has really taken off in the US. They have the ability right now to export 17 billion cubic feet a day of liquified natural gas, and we'll be reaching over 35 BCF a day in 2030. So, a massive increase in export scale, which makes the US the largest exporter of LNG in the world and obviously when we look to the future, making a very supportive case for the future of US gas pricing and especially in the area of the US Gulf Coast where we are operating. LYNDSAY: Now. Let's peel back your project just a little bit further. You just closed a $7.2 million equity raise. Tight market, shaky sentiment where tariffs are the topic of this discussion across the board. What gave you the confidence to tap the markets now and more importantly, how should investors read that move? IAN: It always has to be a very calculated decision for companies like us to go into the equity markets because they are tough. But we can see the supply and demand dynamics for natural gas are fundamentally changing in the US and I think a lot of our investors can as well. Our assets are located within the US which means obviously they're not part of any tariff discussions compared to other countries. Canada being one of them. And the equity raise timing for us was 100% to be offensive. Initiating our growth again heading into summer where we typically see higher premiums for our natural gas pricing than we do in the winter. As an example, the summer coming up right now, the gas prices are trading at US$3.70 for MMBtu. Our basis premium is about $0.50 on top of that. So, we're selling gas into a US$4.20 US market, which is equivalent to about a $6.00 Canadian price if you compare it to the Canadian base. So, we certainly have that opportunity for us here in the summer and frankly why we hit the trigger on the equity raise. LYNDSAY: Let's talk about your wells. You've got three new ones online soon, but soon can actually mean a lot of things in this business. So can you give us a real world timeline here? IAN: Yes, and for those who don't know the company, that aren't familiar. We were in the middle of a major capital program that we paused back in the end of 2023 because of the fall of natural gas prices. But what that did leave us with these three horizontal wells that are drilled and ready for completion at one of our large natural gas assets named Gwinville. A little bit of a history lesson, Gwinville has been historically one of Mississippi's largest producing gas fields. It has produced over 1.2 trillion cubic feet of gas and over 12 million barrels of oil. What we are redeveloping here at that field is three zones that have up to 600 to 700 billion cubic feet of remaining gas. So a lot of gas when you look at the context of a small company like ours. But more succinct to the timing, we are planning to complete this first well, in late May. We have a date with the pumping services already booked, and that means we'll be bringing this well into production here in early June. The plan from there is to complete the next two horizontal wells, kind of one every three months, which is more around our facilities capacity, et cetera. But investors should expect to see a steady stream of results that will actually grow our production and cash flow and prove up over 120 remaining locations at Gwinville. Also in the program this year, and part of this equity raise was we are planning to drill into some of our higher liquids weighting assets outside of Gwinville starting in Q3 and Q4 of this year. LYNDSAY: So, you've really ramped up on financing then you've got the wells ready to go and you're sitting in a prime pricing corridor. So what's the real upside here? What can investors genuinely look forward to in the back half of 2025 that isn't just baked into the share price already? Ian: You know, historically people look back at our share price chart, it's been up and down, and we tend to trade very succinctly with the price of natural gas. So we have shown the markets that the torque we have to increasing gas prices. But on the flip side of that, as gas prices fell, so did our share price. So for example, if you look back in 2022, 2023, our shares were trading over a dollar and as gas prices increased, so that $5, $6, $7 and in that year we were named the best performing stock on the TSX Venture increasing from 10 cents per share to over a $1.40 per share at its peak. You know, I do feel we're in a bit of a better position now even than we were back in 2022 with these wells that we've discussed here today that are already drilled and waiting for completion so quicker for us to bring them into production and cash flow. So I think we're poised for a comeback after 18 months of what have been painfully low gas prices and very little capital spending. We're very excited to be back on the growth trajectory now. Again, that was Ian Atkinson, President and CEO of Southern Energy. You can learn more about them over on their website at and you can find them on the Venture under the ticker symbol, SOU. Join the discussion: Find out what everybody's saying about this stock on Southern Energy investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
