LONDON (ShareCast) - (Sharecast News) - US-focussed natural gas producer Southern Energy updated the market on its drilling and operations on Friday, reporting that its operating subsidiary had contracted Energy Drilling Company's Rig #15 for the upcoming programme at the Gwinville asset in central Mississippi.
The AIM-traded firm said it had received drilling permits for three horizontal wells targeting natural gas in the Selma Chalk Formation, which would be drilled from a single surface pad location.

It said the rig was expected to move to location in late December, after finishing the well it was currently drilling for another operator.

"We are delighted to initiate the Gwinville drilling program prior to year-end and to partner with Energy Drilling Company from Natchez, Mississippi, who have successfully drilled similar horizontal Selma Chalk wells in the past," said president and chief executive officer Ian Atkinson.

"We expect the results of this drilling to have a meaningful impact on the company as we bring on the new production volumes and incremental cash flow prior to the end of the first quarter of 2022."

Atkinson said the Gwinville 19-3 surface pad was ready for the rig, with its location within company-owned infrastructure allowing new production from the wells to be brought onstream quickly.

"This is the beginning of what we believe will be long-term growth at Gwinville providing value for our investors."

At 1529 GMT, shares in Southern Energy Corporation were flat at 2.75p.

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