Earnings
Coastal Energy Announces Third Quarter 2010 FinancialResults
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HOUSTON, TX--(Marketwire - November 18, 2010) - CoastalEnergy Company (the "Company" or
"Coastal Energy") (TSX-V: CEN) (AIM: CEO)announces the financial results
for the quarter ended September 30, 2010.The functional and reporting
currency of the Company is the United States dollar.
Third Quarter 2010 Highlights
--Average totalCompany production of 11,795 boe/d; including average
offshoreproduction of 10,065 bbl/d
--EBITDAX of$44.5 million, or
.39 per fully diluted share; up 49%
sequentiallyand over 550% YoY
--Net income of$9.2 million, or
.08 per fully diluted share
--Firstproduction from the Bua Ban field in the Gulf of Thailand
--The closing ofa $80MM senior secured revolving credit facility
Operational Highlights
During the third quarter Coastal Energy completed thefirst development
phase of the Bua Ban field in the Gulf of Thailand.The field is online
and is producing approximately 4,000 bopd.Exploration results were
positive as two of the wells encountered productive sandsin the Miocene, a
first in the Songkhla basin.Two other wells encountered a significant oil
column in the Eocene reservoir, albeit with tightporosity and
permeability.TheCompany is planning a fracture test of these wells in
December to attempt to make the Eocene reservoircommercially productive.
Following development drilling at Bua Ban, the Companybegan appraisal
drilling into the Lower Oligocene Wedge and Eocenereservoirs at Songkhla.
The first well reached TD in mid-November and encounteredthicker than
expected pay zones in both the Lower Oligocene andEocene.Two more
appraisal wells are planned in the coming weeks.The Company then plans to
begin testing its high impact exploration targets at BuaBan North.
Randy Bartley, President and CEO of Coastal Energy,commented:
"The third quarter of 2010 was a successful one forCoastal.We delivered
record levels of EBITDAX and net income due to higherproduction volumes
from our offshore fields.The completion of the first phase of
development was another milestone for the Company.The fourth quarter is
off to a successful start with the drilling of asuccessful appraisal well
at Songkhla.Weexpect further success as we continue to appraise the
Oligocene Wedge and Eocene reservoirs over the nextmonth.
"The Company is entering an exciting time withseveral high impact
exploration prospects scheduled for testing over the nextseveral months.
As we move forward through the remainder of 2010, we willcontinue to
strive for further success in the exploration andappraisal of our offshore
assets."
The Company plans to host a conference call to discussits Q3 2010 results
on Friday, November 19, 2010 at 11:30 AM Easterntime.The dial-in number
is 800.281.7970 in the USA or +1.913.312.1414internationally.The
conference ID is 2241640.
The following financial statements for the Company areabbreviated
versions. The Company's complete financial statements forthe three months
and nine months ended September 30, 2010 with the notesthereto and the
related Management Discussion and Analysis can be foundeither on Coastal's
/www.coastalenergy.com/">www.CoastalEnergy.comor on SEDAR at
www.sedar.com.