Southern Energy Corp. Announces Payment of Interest In-kind to Its 10% Convertible Unsecured Subordinated Debentures and Voluntary Delisting From OTCQX

CALGARY, AB / ACCESSWIRE / December 31, 2024 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) announces that the Company has agreed to issue, in aggregate, 2,143,000 new common shares in Southern (the "Common Shares") to holders of its 10% convertible unsecured subordinated debentures issued on June 14, 2019 and January 15, 2021 (collectively, the "Debentures") as payment in kind of accrued interest on the Debentures due on December 31, 2024 in the aggregate amount of CAD$214,300 (the "Interest Payment"). The number of new Common Shares to be issued is equal to the amount of the interest, divided by the volume weighted average trading price per Common Share for the 20 consecutive trading days ending on the fifth trading day on the TSX-V preceding December 31, 2024, being CAD$0.10 per Common Share. Southern gave notice to Computershare Trust Company of Canada, as debenture trustee, effective December 31, 2024, that it exercised its right to make the Interest Payment by issuing Common Shares.

Director/PDMR Participation

It is noted that certain Directors and PDMRs of the Company hold Debentures, on the same terms as all other participants, and, accordingly, will be issued, in aggregate, 26,000 new Common Shares. Further details regarding individual participation of the Company's Directors and PDMRs is set out in the PDMR notification forms below.

Admission and Total Voting Rights

Application has been made to the London Stock Exchange plc for the admission of the 2,143,000 new Common Shares to trading on AIM, which is expected to occur at 8.00 a.m. (GMT) on or around 3 January 2025 ("Admission"). The new Common Shares will rank pari passu with the existing Common Shares.

Following Admission, the total number of Common Shares in the Company in issue will be 169,385,824, and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company.

The settlement of the Interest Payment through the issuance of Common Shares remains subject to final acceptance of the TSX Venture Exchange.

Voluntary Delisting from OTCQX

The Common Shares of the Company will be voluntarily delisted from the OTCQX effective the close of market January 13, 2025. The Common Shares will continue to trade on the TSX Venture Exchange under the symbol SOU and on the AIM Market of the London Stock Exchange under the symbol SOUC. United States based investors and shareholders will still be able to trade the Company's stock on the OTC Pink trading platform. All shareholders will continue to be able to access Company information filed on SEDAR+ at www.sedarplus.ca and placed on the Company website at www.southernenergycorp.com.

For further information about Southern, please visit our website at www.southernenergycorp.com or contact:

About Southern Energy Corp.

Southern Energy Corp. is a natural gas exploration and production company. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. Our management team has a long and successful history working together and have created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields and the utilization of re-development strategies utilizing horizontal drilling and multi-staged fracture completion techniques.

READER ADVISORY

Forward Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Southern. Although Southern believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Southern can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to production, costs and expenses, regulatory risks, and health, safety and environmental risks); the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks; the impact of pandemics; constraint in the availability of labour, supplies or services; commodity price and exchange rate fluctuations; geo-political risks, political and economic instability abroad and wars (including the Russo-Ukrainian war and the Israel-Palestinian conflict); changes in legislation impacting the oil and gas industry; inflationary risks, including potential increases to operating and capital costs; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Russo-Ukrainian war and the Israel-Palestinian conflict are particularly noteworthy, as these conflicts have the potential to disrupt the global supply of oil and gas, and their full impact remains uncertain. Other risks faced by the Company are set out in more detail in Southern's Annual Information Form for the year ended December 31, 2023 and the Company's most recent management discussion and analysis, which are available under the Company's SEDAR+ profile at www.sedarplus.ca. The forward-looking information contained in this press release is made as of the date hereof and Southern undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

PDMR NOTIFICATION FORMS

SOURCE: Southern Energy Corp.