News: CEN.V Announces Closing of Senior FinancingCoastal Energy Announces Closing of Senior Unsecured Financing
TORONTO, Jan. 23, 2009 (Canada NewsWire via COMTEX News Network) --
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 completed its offering of 100 senior unsecured notes raising gross proceeds of US$10MM ("the Notes" or "the Offering").
Canaccord Capital Corporation and Macquarie Capital Markets Canada Inc. acted as joint lead agents in a syndicate that also included Thomas Weisel Partners Canada Inc. The agents were paid a commission of US$410,000 in connection with the sale of the Notes, and Canaccord received an additional financial advisory fee of US$70,000.
The Notes will bear interest at 15% per annum and will mature on January 23, 2010. Each US$100,000 note was issued together with a warrant entitling the holder thereof to acquire 20,000 shares of the Company's common shares at a strike price of C$1.136. The warrants will expire on January 23, 2014. The Notes, the warrants and the common shares issuable upon exercise of the warrants are subject to applicable US federal and state securities laws which may impose a hold period of not less than 12 months. In addition, unless permitted under applicable Canadian securities legislation, the securities may not be traded in Canada before May 24, 2009.
Proceeds from the Offering will be used to fund further development of the Company's assets offshore Thailand and for general corporate purposes.
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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*
- 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. The Company expects to exit Q1
2009 with average production of 9,000 bopd from Songkhla.
- 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