CALGARY, AB / ACCESS Newswire / May 26, 2026 / 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, 2026. Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited condensed consolidated financial statements and related management's discussion and analysis (the "MD&A") for the three months ended March 31, 2026, which are available on the Company's website at www.southernenergycorp.com and have been filed under the Company's profile on SEDAR+ at www.sedarplus.ca.
All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted.
FIRST QUARTER 2026 HIGHLIGHTS
On February 12, 2026, the Company completed a financing and royalty transaction with certain arm's-length investors pursuant to which it issued the 2026 Debentures (as defined below) and new common shares in the capital of the Company ("Common Shares") and granted a 6% gross overriding royalty ("GORR") on its existing and future developed production (collectively, the "February Financing"). The Company issued 17,000 $1,000 face value senior secured convertible debentures (the "2026 Debentures") for gross proceeds of $17.0 million, 30.0 million new Common Shares at a price of CAD$0.07 ($0.05) per Common Share for gross proceeds of CAD$2.1 million ($1.5 million) and received $5.0 million of proceeds from the sale of the gross overriding royalty. The February Financing generated aggregate net proceeds of approximately $22.0 million, which were used in part to repay and retire the Company's senior credit facility (the "Credit Facility"), with the remainder intended to fund development capital and general corporate purposes. The 2026 Debentures mature on December 31, 2028, and bear interest at 7% per annum.
