Southern Energy (AIM:SOUC) announced the rig release of its Terrible Creek 21-2 #2 Cotton Valley vertical well in the Williamsburg Field on 10 September.
The natural gas and light oil producer, which operates in Mississippi, drilled the well to a total depth of approximately 18,825 feet, encountering prospective sands across the Sligo, Hosston and Cotton Valley formations.
The company will now move into completion and testing operations targeting the Cotton Valley formation, with results to follow.
"We are very pleased with the operational performance on our first Cotton Valley well in the Williamsburg field", said Ian Atkinson, President and Chief Executive Officer.
He noted the well reached total depth from spud in less than 22 days, calling it one of the fastest wells in the area to exceed 18,500 feet.
Atkinson said the operation surfaced efficiencies management intends to apply to future wells to improve drill times and reduce capital costs.
Attention now turns to completion and testing, with production results expected once available.
News Intelligence what this means for the company
Southern Energy has completed drilling of its first Cotton Valley test well at Williamsburg in Mississippi, reaching 18,825 feet in under 22 days—among the fastest in the area for that depth. The well now enters completion and testing; production results remain pending. The company highlighted operational efficiencies it plans to apply to future wells to reduce capital costs, but the investment case turns entirely on what the well produces once tested.
Drilling speed and cost discipline matter only if the well flows commercial volumes. Southern Energy's Q2 2026 revenue of $4.2 million leaves little room for error; a dry or marginal Cotton Valley result would delay the company's path to cash generation. Conversely, a strong test could validate the play and justify the capital deployed—but that verdict is weeks away.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
