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Southern Energy Corp
Admission to trading on AIM by way of an introduction, shortly followed by an equity fundraise of US$10.1 million to drill three horizontal wells at the Company’s Gwinville gas field.
£18.9m
Background
In August 2021, Strand Hanson was appointed as Nominated & Financial Adviser to Southern Energy Corp (“Southern Energy” or the “Company”), a company quoted on the TSX-V Exchange, to advise the Company in relation to admission to trading on AIM as a dual listing (“Admission”).
Southern Energy’s Admission to AIM was completed by way of an introduction in August 2021, which was followed by an equity fundraise in November 2021. The equity fundraise following Admission to AIM was structured as a combined Prospectus Offering in Canada and a private Placing in the UK, enabling the Company to raise funds in both jurisdictions simultaneously.
Southern Energy is a TSX-V listed established oil and gas producer headquartered and incorporated in Alberta, Canada, with oil and gas interests in properties located in the south-eastern United States, primarily in Mississippi. Being dual listed on the AIM and the TSX-V has enabled Southern Energy to broaden its shareholder base and public profile, providing a platform from which it can advance its strategy of building value though the consolidation and development of gas and oil assets in south-eastern United States.
Our role
Strand Hanson acted as Nominated & Financial Adviser to Southern Energy in relation to the Company’s Admission to AIM by way of an Introduction. Strand Hanson led the process of admitting the Company’s shares to trading on AIM, coordinating the process and advisory teams across multiple jurisdictions. Strand Hanson subsequently advised the Company in relation to the equity fundraising of US$10.1 million noted above, which was completed shortly following Admission across two jurisdictions and stock exchanges, enabling the Company to drill up to three horizontal Selma Chalk wells in the Gwinville field. In the two years following the Company’s Admission to AIM, Strand Hanson advised on two multi-jurisdictional equity fundraises, raising, in aggregate, c. US$41 million (£32 million), and the strategic acquisition of the remaining producing acreage in the Gwinville Field. The Company’s market capitalisation has increased from £18.9 million at the time of Admission to £30.6 million as at 1 August 2023, during a period of exceptionally challenging market conditions, demonstrating the benefits of having access to different pools of capital through both AIM and the TSX-V and the excellent stewardship of the Company’s highly capable management team.
Strand Hanson has significant experiencing in advising companies across the natural resources sector with international operations and we look forward to continuing to support Southern Energy with the execution of its growth strategy and the creation of value for shareholders.