Coastal Energy Co. CEO Q3 2012 Results

  Coastal Energy Co. (CEO) - Q3 2012 Results

RNS Number : 8641Q
Coastal Energy Company
12 November 2012




TSX:
CEN
 12 November 12, 2012

AIM: CEO

  Coastal Energy Announces Third Quarter 2012 Financial Results & Operations
                                    Update



Coastal Energy Company  (the "Company"  or "Coastal Energy")  (TSX: CEN,  AIM: 
CEO), an  independent  exploration  and  production  company  with  assets  in 
Thailand, announces the financial results for the three and nine months  ended 
September 30, 2012. The functional and  reporting currency of the Company  is 
the United States dollar.

Third Quarter 2012 Highlights

Ø Total Company production increased to 21,798 boe/d in the third quarter from
12,028 boe/d in the same period last year. The Company's offshore  production 
was 19,626 bbl/d compared to 10,191 bbl/d in Q3 2011, with the increase due to
the inclusion of production  from both platforms at  Bua Ban North.  Offshore 
production was impacted by downtime at  Bua Ban North and Songkhla during  rig 
moves as well as the MOPU replacement at Bua Ban North. Onshore production of
2,172 boe/d increased from Q3 2011 levels of 1,837 boe/d as natural gas demand
continued to recover following the flooding in Thailand in late 2011.

Ø EBITDAX for Q3 2012 was $114.6  million, 157% higher than the $44.7  million 
recorded in Q3 2011. Revenue and EBITDAX were driven higher by increased  oil 
liftings and commodity  prices. Crude  oil inventory was  577,863 barrels  at 
September 30, 2012, the  revenue from which will  be recognized in the  fourth 
quarter. The  Company  saw  closing inventory  increase  by  121,445  barrels 
(approximately 27%) during Q3 2012.

Ø The Company announced successful drilling results in the Songkhla A field.
The A-10 well, drilled in the eastern most fault block of the field,
encountered a record amount of net pay for the basin and exhibited very
favorable reservoir characteristics in the Lower Oligocene interval. In late
September 2012, the well was brought on production at approximately 4,000
bbl/d. Subsequently, the Company drilled the A-13 well in the previously
untested northeast fault block and encountered 67 feet of net pay in the Lower
Oligocene. Successful results from the A-13 provide the opportunity for an
additional well (Songkhla A-19) higher up structure to add additional pay
thickness.

Ø The Company completed the conversion of the Richmond mobile offshore
production unit (MOPU). Subsequently, in October 2012, the Richmond was
installed at the Bua Ban North B field, increasing production capabilities to
55,000 bbl/d. The previous MOPU in the Bua Ban North B field was purchased by
the Company and reinstalled at Bua Ban South.

Ø The Company signed a contract with a subsidiary of Atwood Oceanics, Inc. for
the Manta jackup drilling rig. The rig is scheduled to be delivered by late
November and will conduct drilling operations for the Company in the Gulf of
Thailand and offshore Malaysia.

Ø The Company upsized and amended its senior secured revolving credit facility
with BNP Paribas and Commonwealth Bank of Australia. The facility has been
increased from $100 million to $200 million and includes two additional banks,
Standard Bank and Standard Chartered Bank.

Ø The Company is approximately 60% complete with the acquisition of new 3D
seismic data being shot over the entire Songkhla basin. Current expectations
are for delivery of the processed data in Q1 2013.

The following financial statements for  the Company are abbreviated  versions. 
The Company's  complete financial  statements for  the three  and nine  months 
ended September 30,  2012 with the  notes thereto and  the related  Management 
Discussion  and  Analysis  can  be  found  either  on  Coastal's  website   at 
www.CoastalEnergy.com or on  SEDAR at  www.sedar.com. All amounts  are in  US$ 
thousands, except share and per share amounts.



For the full results, please click on the link below:





http://www.rns-pdf.londonstockexchange.com/rns/8641Q_-2012-11-12.pdf









Additional information, including  the Company's  complete competent  person's 
report may be found on the Company's website at www.CoastalEnergy.comor may be
found in documents filed on SEDAR at www.sedar.com.

This  statement  contains  'forward-looking  statements'  as  defined  by  the 
applicable securities legislation. Statements  relating to current and  future 
drilling results,  existence  and  recoverability  of  potential  hydrocarbon 
reserves,  production  amounts  or  revenues,  forward  capital  expenditures, 
operation costs, oil and gas price forecasts and similar matters are based  on 
current  data  and  information  and  should  be  viewed  as   forward-looking 
statements. Such  statements are  not  guarantees of  future results  and  are 
subject to risks  and uncertainties  beyond Coastal  Energy's control.  Actual 
results may differ substantially from the forward-looking statements.

Enquiries:

Coastal Energy Company

Email:investor@CoastalEnergy.com+1
(713) 877-6793



Strand                Hanson                Limited                 (Nominated 
Adviser)+44
(0) 20 7409 3494

Rory Murphy / Andrew Emmott





Macquarie               Capital                (Europe)                Limited 
(Broker)+44
(0) 20 3037 2000

Paul Connolly / Jeffrey Auld



FirstEnergy Capital LLP(Broker)

Hugh Sanderson /
TravisInlow+44(0)
20 7448 0200



Buchanan

Tim Thompson / Ben
Romney+44
(0) 20 7466 5000



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


QRTFFWSUEFESEFF -0- Nov/12/2012 13:30 GMT