Southern Energy Corp on Tuesday said petroleum and gas sales surged in the third quarter of 2022, following a rise in its corporate production.

The Mississippi-focused oil & gas firm said petroleum and natural gas sales quadrupled to $19.2 million in the three months to September 30, from $5.2 million the year before.

The third quarter represented the first three months of full production addition from the three well appraisal programme in the Gwinville field. Southern Energy said the success of the first three wells at Gwinville has already increased its corporate production by over 100%.

The three well pad site contributed approximately 1,546 barrels of oil equivalent per day in the period, an increase of over 80% to Southern’s base production.

Southern Energy’s net earnings increased 54% to $6.6 million, up from $4.3 million.

The company renegotiated an increase of $25 million borrowing capacity with its current lender in respect to its senior secured term loan, to increase the total credit facility to $35 million.

Southern Energy said this will allow the company to accelerate the organic growth strategy portion of its goal to reach 25,000 barrel of oil equivalent per day.

At current pricing, the company’s average horizontal well at Gwinville is expected to payout in less than 12 months, Southern Energy said.

‘From a balance sheet perspective, our $31 million equity financing and $25 million increase to the company’s existing borrowing capacity means that we are able to fund a capital programme that allows us a level of cashflow which we can recycle into further development of our asset base, increasing cashflows further,’ Chief Financial Officer Calvin Yau said.

Southern Energy shares were up 6.5% to $0.99 on Tuesday afternoon in London.

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