News: Q1 2008 Financial Results Announced
Coastal Energy Announces 1st Quarter 2008 Financial Results
Fri May 30, 7:31 AM
HOUSTON, May 30 /CNW/ - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in South-East Asia, announces today the financial results for the first quarter ended March 31, 2008. The functional and reporting currency of the Company is the United States dollar.
Financial Highlights - $2,868,000 of earnings from Coastal's 36.1% investment in Apico LLC (1Q '07: $1,563,000) - Net loss of $3,961,000 or $0.04 per share (1Q '07 loss: $739,000 or $0.01 per share) - $57.6 million raised via a 'bought-deal' agreement with Macquarie Capital Markets Canada Ltd - Total assets increased to $186.3 million from $157.7 million at December 31, 2007 Operational Highlights - The Phu Horm gas field, in which the Company has a net 12.6% indirect interest, was producing in excess of 100 mmcf/day of gas at the end of the first quarter. - The Company acquired a 24,000 ton vessel for $8 million and began refurbishing it to serve as a floating storage and off-loading unit in connection with the development of the Company's Gulf of Thailand properties. - The Company furthered the technical and field development on the 100% owned and operated offshore Gulf of Thailand Block G5/43. The technical team has established numerous new prospects offshore based on the recently processed 3-D seismic program of 2007. - The Company announced an increase in its 2007 year end reserves - 28% increase in total proven (1P) reserves to 19.0 mmboe - 50% increase in offshore proven + probable (2P) reserves to 26.7 mmboe - The Company participated in the drilling of the Dong Mun 3 "DM3" appraisal well via its 36.1% interest in Apico, LLC. DM3 reached a total depth of 3,127 meters and encountered numerous gas shows in the Jurassic, Triassic and Permian sections. The most significant shows were encountered in the Jurassic and Triassic sands above the main reservoir target, the Pha Nok Khao ("PNK") formation. Coastal intends to drill an additional well higher on the structure later this year to test the shallower Jurassic potential.
Randy Bartley, Chief Executive Officer of Coastal commented:
"The Company has made great progress in the first quarter towards getting its offshore Thailand properties into production. The following key objectives were achieved: acquisition of a tanker for FSO conversion, continued construction of our wellhead and processing platforms for the Songkhla development, and opening our Songkhla warehouse facility. In addition, we have staffed up our Bangkok technical team which has already identified numerous new prospects in our Gulf of Thailand concession.
I am excited about the near term development program as well as the longer term appraisal and exploration upside within the Company's existing asset portfolio."
Notes to Editors - Coastal Energy is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand. - The Company specializes in identifying and developing under-exploited or "orphaned" assets. Management has proven experience at identifying and unlocking value from overlooked, abandoned, low risk assets with proven hydrocarbon potential - This strategy has enabled the Company to assemble an asset base in Thailand that includes production of approximately 11.5 mmcf/d of gas under a long-term contract and offshore oil fields currently under development - Production growth over the next 12 -18 months is expected to grow significantly and proven, probable and possible reserves are 53.6 million barrels oil equivalents* - The Company's current assets include: - Offshore Thailand - 100% of block G5/43 - two oil fields currently under development with several other appraisal and exploration opportunities. Production is expected to commence Q4 2008 - 100% of block G5/50 - within the boundaries of block G5/43 in the Ko Kra basin - Onshore Thailand - 12.6% net interest in blocks EU1 and E5N which include the Phu Horm gas field, which was producing in excess of 100 mmcf/d at the end of the first quarter 2008. - 36.1% net interest in block L15/43 surrounding the Phu Horm field - 36.1% net interest in block L27/43 - containing the undeveloped Dong Mun gas field - 21.7% net interest in block L13/48 located adjacent to blocks L15/43 and L27/43, contains Si That discovery For additional information, including the Company's complete competentperson's may be found on the Company's website, www.CoastalEnergy.com or maybe found in documents filed on SEDAR, www.sedar.com. * Per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6mcf: 1bbl of oil is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three months ended March 31, 2008 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal's website www.CoastalEnergy.com or on SEDAR www.sedar.com. All amounts are in US$ thousands, except share and per share amounts.
Three months ended March 31 2008 2007 ------------------------------------------------------------------------- Expenses Salaries and benefits $ 2,317 $ 598 Professional fees 436 293 Office and general 273 266 Interest expense 229 51 Other 464 188 ----------- ----------- 3,719 1,396 ----------- ----------- Other (income) expense items Share of Apico LLC earnings (2,868) (1,563) Foreign exchange loss 3,382 1,007 Other (272) (101) ----------- ----------- 242 (657) ----------- ----------- Net loss and comprehensive loss $ (3,961) $ (739) ----------- ----------- ----------- ----------- Loss per share - basic and dilutive $ (0.04) $ (0.01) ----------- ----------- ----------- ----------- Weighted average number of common shares outstanding - basic and dilutive 92,105,694 76,858,222 ------------------------------------------------------------------------- ------------------------------------------------------------------------- March 31, December 31, As at 2008 2007 ------------------------------------------------------------------------- Assets Cash and cash equivalents $ 20,466 $ 13,149 Other current assets 2,023 2,498 ----------- ----------- 22,489 15,647 Investments in and advances to Apico LLC 56,056 53,188 Property, plant and equipment, net 107,695 88,762 Other long-term assets 78 57 ----------- ----------- $ 186,318 $ 157,654 ----------- ----------- ----------- ----------- Liabilities Accounts payable and accrued liabilities $ 9,674 $ 9,793 Amounts due to shareholder 4,995 4,940 ----------- ----------- 14,669 14,733 Long-term debt - 25,000 Future income tax liability 28,808 26,876 ----------- ----------- 43,477 66,609 ----------- ----------- Shareholders' equity 142,841 91,045 ----------- ----------- $ 186,318 $ 157,654 ----------- ----------- ----------- -----------
These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.
"The TSX Venture Exchange does not accept responsibility
For the adequacy or accuracy of this release"
Contacts
Coastal Energy Company
Frank Inouye
Chairman
+44 (0) 1483 549 549
Randy L. Bartley
Chief Executive Officer
(713) 877-6705
William C. Phelps
Chief Financial Officer
(713) 877-6727
Email: investor@CoastalEnergy.com
Bell Pottinger Corporate & Financial
Nick Lambert
Rosanne Perry
+44 (0) 20 7861 3232
07811 358 764
KBC Peel Hunt Ltd (Nominated Adviser)
Jonathan Marren
Matt Goode
+44 (0) 20 7418 8900