News: Coastal Energy Announces Financing TransactiCOASTAL ENERGY COMPANY - Coastal Energy Announces Financing Transaction
Dec 22, 2008 (PR Newswire Europe via COMTEX News Network) --
Coastal Energy Announces Financing Transaction
HOUSTON, Dec. 22 /CNW/ - Coastal Energy Company (the "Company" or
"Coastal Energy") (TSX-V: CEN, AIM: CEO), an independent exploration and
production company with assets in Southeast Asia, announces that it has
engaged Canaccord Capital Corporation and Macquarie Capital Markets Canada
Ltd. to act as joint lead agents in a unit offering to raise gross proceeds of
up to US$10,000,000 (the "Offering") with Thomas Weisel Partners Canada Inc.
acting as co-manager (collectively "the Agents"). The Offering will consist of
up to 100 units, each unit consisting of (i) a senior unsecured note with a
face value of US$100,000 and bearing interest at 15% per annum; and (ii) a
warrant entitling the holder thereof to acquire 10,000 of the Company's common
shares at a strike price equal to the arithmetic average of the closing prices
of the Company's common shares on the TSX Venture Exchange for the five
trading days preceding the closing date of the Offering. The warrants will
expire five years from the date of issue. The Offering will include an
over-allotment option of up to 50 units, which will be granted to Canaccord
Capital Corporation. The Company expects the Offering to close by January 19,
2009. The net proceeds of the Offering will be used to fund further
development of the Company's assets offshore Thailand and for general
corporate purposes.
"This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful."
Notes to Editors
- Coastal Energy is an oil and gas exploration, development and
production company, with core assets onshore and offshore Thailand
- The Company specialises 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 long term contract and offshore oil fields currently under
development
- Production growth over the next 12-18 months is expected to grow
exponentially and proven, probable and possible reserves are
45.5 million barrels oil equivalent(x)
- The Company's current assets include:
- Offshore Thailand
- 100% of block G5/43 - two oil fields currently under development
with several other similar appraisal and exploration
opportunities. Production is expected to average 9,000 bopd in
Q1 2009.
- 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 had average daily production of
94 mmcf/d for the quarter ended September 30, 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
Additional information, including the Company's complete competent
person's may be found on the Company's website, www.CoastalEnergy.com or may
be found in documents filed on SEDAR, www.sedar.com.