LONDON (ShareCast) - (Sharecast News) - Southern Energy Corporation reported improved second-quarter results on Tuesday, as firmer natural gas prices and new well completions supported revenue growth and reduced losses.
The AIM-traded, Calgary-based producer, which operates natural gas and light oil assets in Mississippi, said petroleum and natural gas sales rose 3% to $4m in the three months ended 30 June, compared with the same period last year.

It said the increase was driven by a 61% rise in natural gas pricing year-on-year, which offset a 27% decline in average production to 11,295 thousand cubic feet equivalent per day (Mcfe/d), of which 96% was gas.

The company recorded a net loss of $0.4m, or breakeven on a per-share basis, narrowing from a $2.6m loss a year earlier.

Adjusted funds flow from operations was $0.6m.

Southern realised average prices of $3.63 per Mcf for natural gas and $62.60 per barrel for oil, with gas sold at a premium of about 6% to the NYMEX Henry Hub benchmark.

Operationally, Southern completed the second of four drilled uncompleted wells from its 2023 program in June.

The GH Lower Selma Chalk 13-13 #2 wellbore was delivered safely, 10% below budget, and had begun contributing additional volumes.

It also strengthened its balance sheet in April with a $5.0m equity raise and the conversion of $3.1m in debentures.

"Southern continued to build momentum through the second quarter of 2025, supported by firming natural gas prices and the successful completion in late June of the GH LSC 13-13 #2 well in our Gwinville field, marking a key milestone in the redevelopment of our LSC inventory," said chief executive Ian Atkinson.

"Early flowback results are highly encouraging and we are particularly pleased to have completed this well at 10% below our original budget, accelerating expected payouts and reinforcing the economic viability of our broader development program."

Atkinson added that looking ahead, the company expected the new volumes to materially enhance its third quarter 2025 cash flow profile.

"With a constructive outlook for natural gas pricing into the back half of 2025 and into 2026, combined with two additional high-quality DUCs, a deep inventory of drilling opportunities and ongoing capital discipline, Southern is well-positioned to deliver meaningful shareholder value through the remainder of the year and beyond."

At 0801 BST, shares in Southern Energy Corporation were up 4.67% at 3.14p.

Reporting by Josh White for Sharecast.com.

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