Southern Energy Methodology
Southern Energy’s expertise is acquiring royalty interests and working interests in currently producing wells at an excellent price yielding great returns. Third parties run operations for acquired interests and Southern Energy does not bear the burden of operation.
Southern Energy invests in oil & gas interests that already have a positive cash flow and a well established production history. Southern Energy typically acquires interests in wells that have been producing for two years or more. Oil and gas wells are depleting assets, but most last for several years – the average well lasts over 25 years. Additionally, we work with only reputable operators in all our investments.
The proprietary analysis techniques used at Southern Energy have been continuously improved upon for over 50 years, and we continue to calibrate our models based on statistical data. Each well is carefully analyzed to determine the remaining years of production available, following which the production analysis is integrated with a financial model to come up with a valuation based on targeted investment returns.
Detailed Evaluation Process
At Southern Energy we understand that a good investment projection requires reliable underlying data. Our expertise and successes are built on our commitment to thorough due diligence and analysis of well reserves.
Our evaluation processes incorporates (but is not limited to):
This methodology has proven to be successful over many years, and Southern Energy’s primary goal is to achieve returns by: