(Alliance News) - Southern Energy Corp on Tuesday said it has completed its deal with PetroTX Energy LLC to buy the remaining producing acreage in the Gwinville Field in the US state of Mississippi.
Southern Energy is a natural gas exploration and production company, focused on acquiring and developing conventional natural gas and light oil resources in Mississippi, Louisiana, and East Texas.
Shares in the company closed up 5.8% at 22.75 pence each in London on Tuesday.
In May, Southern Energy bought the remaining acreage at Gwinville in Jefferson Davis County for USD3.2 million in cash.
Under the terms of the agreement, the firm also agreed to grant PetroTX minor overriding royalties over two of the asset's wells, which currently are not producing and would require remedial work to re-commence production.
Southern Energy said that the assets are currently producing about 400 barrels of oil equivalent per day.
Chief Executive Officer Ian Atkinson said: "We are very pleased to close this highly accretive acquisition. Our team has already begun optimizing the newly consolidated assets including through marketing opportunities, with additional volumes and access to the Florida Gas Transmission sales point, which is currently receiving a strong premium to NYMEX Henry Hub, and the rationalisation of operating costs."
By Sophie Rose, Alliance News reporter
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