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Southern Energy Corp said on Tuesday it more than doubled its petroleum and gas sales in the final quarter of 2021 and swung to a profit in the year as a whole.
The oil and gas company focussed on the US state of Mississippi reported petroleum and natural gas sales of $7.2 million in the final quarter of 2021, up significantly from $3.5 million a year before.
For all of 2021, sales totalled $19.9 million, nearly doubled from $10.4 million in 2020. This was thanks to higher oil prices and despite average production decreasing 2% year-on-year to 2,099 barrels of oil equivalent per day.
The Calgary, Canada-based company also swung to a profit of $10.1 million in the year from a loss of $7.8 million.
Looking forward, Southern Energy said it will evaluate continual drilling at the Gwinville Field in Mississippi, pending successful drilling results.
Southern Energy added that it has entered into fixed price and costless collar hedges to mitigate the effects of oil and gas market volatility.
Chief Executive Ian Atkinson said: ‘We are pleased to be reporting our Q4 and full-year results for 2021, which are demonstrative of the significant progress achieved this year and of the quality of our asset base and strategy.
‘In particular, we are pleased to report substantially increased earnings of $10.1 million in a year which saw Southern Energy Corp's shares admitted to trading on AIM and the raising of additional equity funding from both Canada and the UK to support our ongoing drilling campaign at Gwinville.’
Shares in Southern Energy were up 7.1% at 43.90 pence on Tuesday morning in London.
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