Coastal Energy Company, an independent exploration and production company with assets in Thailand, announces the financial results for the three and six months ended June 30, 2011. The functional and reporting currency of the Company is the United States dollar.
Second Quarter 2011 Highlights:
- Total Company production declined slightly in Q2 to 9,494 boe/d from 9,814 boe/d in the same period last year. The Company’s offshore production from its two producing fields in the Gulf of Thailand averaged 7,203 bbl/d in the second quarter, down 9% from the same period last year. The decline in offshore production is mainly attributable to downtime for workovers during the quarter, as well as pressure declines in the Songkhla A-09 and A-11 wells due to lack of aquifer support. The Company plans to drill injection wells to restore production from these wells later in 2011. Onshore production averaged 2,291 boe/d, up from 1,900 boe/d last year driven by increased Thai gas demand.
- The Company completed the first phase of exploration drilling at Bua Ban North A & B and announced major discoveries in the Miocene trend at both fields. The Company drilled three successful wells at Bua Ban North A and seven successful wells at Bua Ban North B. A MOPU has been set on location at Bua Ban North B and production testing is underway.
- Subsequent to the end of the quarter, the Company announced the initial production testing results at Bua Ban North B. Production is currently 7,100 bbl/d out of four of the seven wells. The Company is currently completing and tying in the remaining wells.
- Early in the third quarter, the Company also announced successful exploration results at Songkhla H. The discovery well flow tested 1,000 bbl/d of oil without an electric submersible pump. An appraisal well was drilled to determine the size of the discovery. The Company has begun planning a full scale field development and is beginning the process of applying for development approval.
- The Company announced that it is moving the drilling rig back to the Bua Ban North field to perform further appraisal and development drilling in the third quarter.
- The Company received approval to list its shares on the main board of the Toronto Stock Exchange. Its Common Shares began trading on the TSX on July 5, 2011 under the ticker symbol “CEN.”
Randy Bartley, President and CEO of Coastal Energy, commented:
“I’m pleased to report that Coastal’s success continued in the second quarter of 2011. Eleven of the twelve exploration wells drilled to date have been successful in discovering commercial quantities of oil. As we have begun tying in production from these discoveries, we have seen material increases in production which will result in increased cash flow in the coming quarters.
“In addition to the exploration success, Coastal has enjoyed further financial success in 2011. We have delivered EBITDAX that is 25% greater than in the first six months of 2010. We expect to post significant production and EBITDAX increases in the coming quarters driven by our recent discoveries.
“We plan to continue building on this success in the coming quarters as we bring more production online and further appraise these Miocene discoveries. The success of the Miocene is encouraging and opens up several new prospect areas for Coastal’s drilling program in the second half of 2011.”
Source: Coastal Energy, August 17, 2011;