en.Wedoany.com Reported - Southern Energy officially spudded the Terrible Creek 21-2 #2 test well on August 11 at the Williamsburg Field in Mississippi, U.S. The well is planned to drill to approximately 19,000 feet, or about 5,790 meters, primarily to evaluate the oil resource potential of the Cotton Valley formation.

Terrible Creek 21-2 #2 is the first of two commitment wells that Southern Energy and an unnamed strategic partner plan to drill in 2026. The parties signed a wellbore participation agreement in May, under which the partner bears $1.95 million in drilling and completion costs per well to earn a 50% working interest; Southern Energy bears the remaining approximately 50% of costs, retains a 50% working interest, and serves as operator.

The total drilling and completion cost per well is estimated at approximately $3.9 million. This spud moves the project from the permitting, site preparation, and rig mobilization phase into wellbore construction, though no formation test results are yet available. After the rig leaves the location, the operations team will carry out completion and testing work.

Southern Energy previously expected the first commitment well to spud in late July; the actual spud date was August 11. Under the plan announced in May, if the first well is successfully drilled and yields results supporting continued evaluation, the company intends to drill the second commitment well in the fourth quarter of 2026.

The working interest earned by the strategic partner covers all potential productive zones within the wellbore. After the two commitment wells are completed, the partner also retains the right to participate in subsequent Cotton Valley wells within the corresponding drilling spacing units, with a participation rate of 5%.