Coastal Energy Co. (CEO) - Q3 2012 Results
RNS Number : 8641Q
Coastal Energy Company
12 November 2012
12 November 12, 2012
Coastal Energy Announces Third Quarter 2012 Financial Results & Operations
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
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:
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.
Coastal Energy Company
Strand Hanson Limited (Nominated
(0) 20 7409 3494
Rory Murphy / Andrew Emmott
Macquarie Capital (Europe) Limited
(0) 20 3037 2000
Paul Connolly / Jeffrey Auld
FirstEnergy Capital LLP(Broker)
Hugh Sanderson /
20 7448 0200
Tim Thompson / Ben
(0) 20 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
QRTFFWSUEFESEFF -0- Nov/12/2012 13:30 GMT
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