Southern Energy Corp. reported production results for the first quarter ended March 31, 2024. Average production of 18,055 Mcfe/d (3,009 boe/d) (96% natural gas) during First Quarter 2024, an increase of 15% from the same period in 2023.

Production in First Quarter 2024 was positively impacted by bringing online the first of its four drilled but uncompleted DUCs from the First Quarter 2023 drilling program, the GH 14-06 #3 wellbore. This lateral hole was drilled and completed in the Upper Selma Chalk reservoir and achieved an IP30 natural gas rate of 5.2 MMcf/d, with declines in the quarter in-line with pre-drill expectations. Southern is planning to delay the completion timing of the remaining three DUCs into at least the second half of 2024 when the Company expects natural gas pricing to be significantly elevated from current levels.

The remaining three DUC wellbores have been drilled in the Lower Selma Chalk (2) and City Bank formations. In response to the low natural gas prices experienced in First Quarter 2024, Southern has been actively reducing and optimizing operating costs, general and administrative expenses and maintenance capital to maximize netbacks. The Company expects to continue these initiatives throughout 2024.

The strategic sales points that Southern sells its natural gas into realized a 13% premium to the average benchmark New York Mercantile Exchange (" NYMEX ") Henry Hub price in First Quarter 2024, helping to offset the challenging natural gas pricing environment.