Southern Energy Corp. Completes US$23.5 Million Financings and Royalty Sale

CALGARY, AB AND TORONTO, ON / ACCESS Newswire / February 12, 2026 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC), an established producer with natural gas and light oil assets in Mississippi, and three related arm's length private investors, Treelawn Group Inc., TCC 1 Corp. and TCC Royalty Corp. (each, an "Investor"), are pleased to announce the completion of Southern's previously announced offering, on a non-brokered private placement basis, of senior secured convertible debentures (the "Debentures") and new common shares ("Shares") of the Company (the "Offering") and sale of a newly-created gross overriding royalty ("GORR" and, collectively with the Offering, the "Transaction") to the Investors for aggregate net proceeds of US$22.0 million after a 8.8235% original issue discount (the "OID") equivalent to US$1.5 million on the Debentures. Any early warning reports and insider reports required under applicable Canadian securities laws will be filed in accordance with regulatory requirements.

Foto: Accesswire

All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted.

Ian Atkinson, President and Chief Executive Officer of Southern, commented:

"We are pleased to have completed this financing, which meaningfully strengthens Southern's balance sheet and positions the Company for disciplined execution of our development program. With the retirement of our prior higher cost senior credit facility and the addition of a supportive long-term capital partner, Southern is well positioned to advance its Gulf Coast assets and focus on operational delivery and value creation for shareholders."

Transaction Highlights

The Company raised US$18.5 million of gross proceeds through the issuance of: (i) 17,000 US$1,000 face value Debentures issued with a 8.8235% OID at a price of US$911.76 per Debenture for gross proceeds of US$17.0 million (net proceeds of US$15.5 million); and (ii) 30.0 million Shares at a price of CAD$0.07 (US$0.05) per Share for additional gross proceeds of CAD$2.1 million (US$1.5 million). The Company raised an additional US$5.0 million of gross proceeds pursuant to the sale of a 6% GORR in all revenue from all existing and future developed production of petroleum substances on the Company's lands as of February 12, 2026, calculated based on the Company's realized price received for each commodity, in perpetuity, payable monthly.