CALGARY, Jan. 28, 2019 /CNW/ – Southern Energy Corp. (“Southern” or the “Corporation“) (SOU: TSXV) is pleased to: (i) provide an update on the Board of Directors of the Corporation (the “Board“); (ii) announce the Board’s adoption of several key corporate governance policies; (iii) provide an update on operations; and (iv) announce that it has changed its auditor from MNP LLP to Deloitte LLP.
Board Chair and Board Committees
The members of the Board have a strong track record and distinguished careers in both the oil and gas industry and capital markets and have held prominent lead positions with a range of successful companies. In addition to the Corporation’s President and Chief Executive Officer, Ian Atkinson, the Board is comprised of Bruce Beynon, Michael G. Kohut, Tamara MacDonald, Andrew McCreath, C. Neil Smith and R. Steven Smith. With the exception of Mr. Atkinson, all members of the Board are independent.
At its January 17, 2019 meeting, the Board took numerous steps to enhance the corporate governance of the Corporation, including the appointment of a new Board Chair, the formation of committees and appointment of committee members and the adoption of key corporate governance policies.
The Board appointed Mr. Bruce Beynon, independent director, to serve as Chairman of the Board. Mr. Beynon is a professional geologist with 30 years of oil and gas industry experience. Mr. Beynon is the former Executive Vice President, Exploration and Corporate Development at Baytex Energy Corp. and was the President of Raging River Exploration Inc. until August, 2018. Mr. Beynon has also held executive positions with Compass Petroleum Partnership, Peloton Exploration Corp., Espoir Exploration Corp. and KeyWest Energy Inc. Mr. Beynon graduated with a Masters of Science degree in Geology in 1991.
The following Board committees were formed, each comprised of fully independent members:
- Audit Committee: Mr. Michael G. Kohut (Chair), Mr. Andrew McCreath and Mr. R. Steven Smith.
- Corporate Governance and Compensation Committee: Mr. R. Steven Smith (Chair), Mr. C. Neil Smith, Ms. Tamara MacDonald, Mr. Michael G. Kohut and Mr. Andrew McCreath.
- Reserves, Health, Safety and Environment Committee: Mr. C. Neil Smith (Chair), Mr. Bruce Beynon and Ms. Tamara MacDonald.
Committee descriptions and formal mandates will be included in the management information circular of the Corporation in respect of the Corporation’s next annual general meeting.
Corporate Governance Policies
The Board is also pleased to announce that it has adopted the following key corporate governance policies: Code of Business Conduct and Ethics; Whistleblowing Policy; Corporate Disclosure Policy; Anti-Hedging Policy; Clawback Policy; and Diversity Policy.
The full text of each of the policies are available on the Corporation’s website at www.southernenergy.ca.
Southern plans to initiate the drilling of its first high impact horizontal well at the Corporation’s Gwinville field in Jefferson-Davis County, Mississippi in early Q2 2019. The drilling is focused on developing and unlocking the potential value of the Corporation’s Selma Chalk natural gas formation through modern drilling and completion techniques.
At Gwinville, management estimated in 2017 that the Selma Chalk formation contains approximately 1+ Tcf of Original Gas In Place (OGIP) with current recovery factor estimated at less than 15%. Recent horizontal wells in an analog pool have resulted in IP30’s greater than 7 MMcf/d(1) and the type wells anticipated have strong economics in today’s price environment. The Gwinville field also has historical production from up to 12 stacked pay formations with low recovery factors which will provide similar multi-zone development opportunities in the future.
Change of Auditor
The Corporation also announces that it has changed its auditor from MNP LLP (the “Former Auditor“) to Deloitte LLP (the “Successor Auditor“) in connection with the previously announced closing of the recapitalization of the Corporation. At the request of the Corporation, the Former Auditor resigned as auditor of the Corporation and the Board appointed the Successor Auditor as the new auditor until the next annual general meeting of the Corporation.
No “reportable event” has occurred (as such term is defined in National Instrument 51-102 – Continuous Disclosure Obligations).
About Southern Energy Corp.
Southern Energy Corp. is an oil and natural gas exploration and production company. Southern has a primary focus on developing conventional and unconventional light oil and liquids rich natural gas resources in the SE Gulf States of Mississippi, Alabama, and Louisiana. Our management team has extensive experience with developing assets through the utilization of horizontal drilling and multi-staged fracture completion techniques. We have a long and successful history of working together as a team and have created significant shareholder value through high quality engineering and geoscience work.