Southern Energy Reports Initial Williamsburg Cotton Valley Test Results
Southern Energy Corp. has reported preliminary flow-test results from the Terrible Creek 21-2 #2 Cotton Valley well at Williamsburg, with further development plans still subject to testing, approvals and capital allocation.
Southern Energy Corp. has reported completion and initial flow-test results from the Terrible Creek 21-2 #2 vertical well in the Williamsburg Field. The company said the preliminary results point to a gas condensate reservoir, while additional fluid testing and production monitoring remain underway.
The well encountered approximately 110 feet of gross Cotton Valley “C” interval. Southern Energy perforated 71 feet of net pay and carried out a 72-hour flow test without fracture stimulation.
At the end of the test, the well was flowing at a stabilised rate of 2.3 MMcf/d of natural gas and 50 barrels of condensate per day, equivalent to approximately 430 boe/d. The result was recorded on a 32/64" choke at a restricted flowing tubing pressure of 435 psig.
The reported rates are on a gross 100% basis, while Southern Energy holds a 50% working interest in the well.
Southern Energy cautioned that the 72-hour test was conducted over a limited period and that the rates do not establish the level at which the well will begin production, decline over time or ultimately recover. No pressure transient analysis or well-test interpretation has been completed, so the results remain preliminary.
The company is conducting fluid phase testing to determine whether the well has the gas condensate characteristics indicated by the initial test. Southern Energy noted that analogous Cotton Valley reservoirs at Seminary, Collins and Northeast Collins have shown oil phase behaviour, but said geological, reservoir, fluid, completion and production differences mean those results are not necessarily indicative of Williamsburg.
Southern Energy is building the required wellsite facilities and anticipates placing the well on production by mid-November 2026. The company said it will assess production performance after start-up before releasing further development and economic information supported by sufficient data.
Using 2D seismic data, Southern Energy has preliminarily mapped more than 7,200 acres of interpreted four-way closure in the Cotton Valley interval at Williamsburg. Assuming 160-acre spacing, the company said the area could support more than 45 gross potential drilling locations.
Those locations are unbooked and have no reserves or resources attributed to them. Southern Energy said there is no certainty that it will drill any or all of them, or that drilling would result in additional oil or natural gas production or economically viable wells. The company currently has no Cotton Valley reserves booked in Williamsburg.
Southern Energy has begun the land and regulatory processes needed to permit two potential follow-up Cotton Valley locations. Subject to receipt of required approvals, final well planning and capital allocation, the company anticipates spudding the next well in early Q1 2027.
The proposed next well is expected to meet Southern Energy’s remaining obligation under the Joint Venture Wellbore Participation Agreement announced on May 26, 2026. It would be the second of the two commitment wells under that agreement.
The company also identified five zones in the shallower Hosston and Sligo formations for evaluation as part of its wider field development work.
Southern Energy said its preliminary assessment of potential future development uses estimated capital costs, identified drilling efficiencies, the absence of required fracture stimulation, early estimates of initial rates and recoveries, and its current forecast liquids and natural gas pricing, including premiums. On those assumptions, the company said the potential locations are expected to provide high rates of capital return.
These statements concern future development and remain subject to the assumptions described by the company. Southern Energy said actual outcomes could differ because of drilling and testing delays, higher-than-expected costs, reservoir uncertainty, permitting and regulatory requirements, the availability of rigs, equipment, services and capital, commodity price changes, weather and other oil and gas industry risks. Further terms, restrictions and contingencies apply.
Southern Energy Corp., which trades under TSXV:SOU and AIM:SOUC, describes its activities as the acquisition and development of conventional natural gas and light oil resources in Mississippi, Louisiana and East Texas.
The Terrible Creek 21-2 #2 well completed a 72-hour flow test without fracture stimulation.
The test ended at 2.3 MMcf/d of natural gas plus 50 barrels of condensate per day, equivalent to approximately 430 boe/d, on a gross 100% basis.
The results are preliminary, and fluid phase testing and production monitoring are continuing.
Southern Energy has preliminarily mapped more than 7,200 acres that could support more than 45 gross potential drilling locations assuming 160-acre spacing, but the locations are unbooked.
A follow-up well is anticipated in early Q1 2027, subject to required approvals, final well planning and capital allocation.
Southern Energy Corp. announced completion and initial flow-test results from the Terrible Creek 21-2 #2 Cotton Valley vertical well in the Williamsburg Field. The well encountered a Cotton Valley “C” gross interval thickness of approximately 110 feet, with 71 feet of net pay perforated, and underwent a 72-hour flow test without fracture stimulation.
Southern Energy Corp. announced the results on October 15, 2026. The announcement covers completion and initial flow-test results from the Terrible Creek 21-2 #2 well.
At the end of the 72-hour flow test, Southern Energy Corp.’s well was flowing at a stabilised rate of 2.3 MMcf/d of natural gas plus 50 barrels of condensate per day, equivalent to approximately 430 boe/d. The rate was recorded on a 32/64" choke at a restricted flowing tubing pressure of 435 psig.
Southern Energy Corp. said the flow-test results are preliminary because the test covered a limited period and no pressure transient analysis or well-test interpretation had been completed. The company also cautioned that short-term test rates are not determinative of the rate at which the well will commence production or decline, and are not indicative of long-term performance or ultimate recovery.
Southern Energy Corp. holds a 50% working interest in the Terrible Creek 21-2 #2 well. The reported flow-test rates were stated on a gross 100% basis.
Southern Energy Corp.’s initial flow-test results suggest a gas condensate reservoir, although the company is conducting fluid phase testing to confirm the characteristics. The company said analogous Cotton Valley reservoirs at Seminary, Collins and Northeast Collins have exhibited oil phase behaviour, so the results from those fields are not necessarily indicative of Williamsburg.
Southern Energy Corp. is constructing the necessary wellsite facilities and anticipates bringing the well on production by mid-November 2026. The timing is an expectation stated by the company rather than a completed production milestone.
Using 2D seismic data, Southern Energy Corp. has preliminarily mapped more than 7,200 acres of interpreted four-way closure at the Cotton Valley interval. Assuming 160-acre spacing, the company said this area could support more than 45 gross potential drilling locations, but these are unbooked locations and there is no certainty that Southern will drill them or that they would result in production or economically viable wells.
Southern Energy Corp. currently has no Cotton Valley reserves booked in Williamsburg. The company also stated that the potential drilling locations discussed are unbooked and do not have reserves or resources attributed to them.
Southern Energy Corp. said its preliminary assessment uses expected development capital costs, identified drilling efficiencies, no required fracture stimulations, early estimates of initial rates and expected recoveries, and the company’s current forecast liquids and natural gas pricing, including premiums. Based on those assumptions, the company said the future drilling locations are expected to provide high rates of capital return, while noting that these are forward-looking estimates and that actual results could differ.
Ian Atkinson, President and Chief Executive Officer of Southern Energy Corp., said the initial test results support further capital spending on the Cotton Valley “C” interval and planning for follow-up development. He also said the company encountered five highly prospective zones in the shallower Hosston and Sligo formations, which Southern will evaluate as part of its broader field development strategy.
Southern Energy Corp. has initiated the land and regulatory processes needed to permit two potential follow-up Cotton Valley drilling locations. Subject to required approvals, final well planning and capital allocation, the company anticipates spudding the next well in early Q1 2027.
Southern Energy Corp. said the next well is expected to satisfy its remaining commitment under the Joint Venture Wellbore Participation Agreement announced on May 26, 2026. It would be the second of the two commitment wells under that agreement.
Southern Energy Corp. identifies its listings as TSXV:SOU and AIM:SOUC. The company describes itself as an established producer with natural gas and light oil assets in Mississippi.
Southern Energy Corp. is a natural gas exploration and production company focused on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana and East Texas. The company describes its production base as stable and low-decline, with a low-risk drilling inventory and access to premium commodity pricing in North America.