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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.

Established History
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.

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Empirical Evidence
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. 
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​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): 
  • Geology and Reservoir Formations
  • Well Maintenance
  • Depletion Scenarios
  • Completion Technology
  • Casing Type
  • Production Analysis
  • Revenue & Expense Statements
  • Survey Plats
  • Well Test Reports
  • Offset Data

​This methodology has proven to be successful over many years, and Southern Energy’s primary goal is to achieve returns by:
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  • Investing in oil & gas interests that already have a positive cash flow and a well established history
  • Focusing on specific regions where we have a competitive advantage as a result of our extensive experience, specifically Texas and Oklahoma
  • Working with established operators in all of our investments
  • Incorporating proprietary analysis of data into investment, operational and exit decisions
  • Building a long term relationship with all our investors
©2017 Southern Energy, LLC | (512) 261 - 9390 | Austin, Texas