Coastal Energy Company (the "Company" or "Coastal Energy") (TSX-V:
CEN) (AIM: CEO), the independent exploration and production company
with assets in Thailand, announces the financial results for the
three months ended March 31, 2011. The functional and reporting
currency of the Company is the United States Dollar.
First Quarter 2011 Highlights
-- Total Company production averaged 10,125 boepd in the first quarter, up
from 7,578 boepd in the fourth quarter of 2010, a 34% increase.
Offshore production was impacted by downtime for workover operations on
several wells.
-- EBITDAX for Q111 was $40.1 million, 13% above the same period in 2010.
-- The Company began its exploration program with a discovery at Bua Ban
North A. The Bua Ban North A-01 well encountered pay zones in the
Miocene and Upper Oligocene intervals.
-- Subsequent to quarter-end, two further successful exploration wells
were drilled at Bua Ban North A and six successful exploration wells
were drilled at Bua Ban North B. The Company plans to begin testing
these discoveries in July.
Randy Bartley, President and CEO of Coastal Energy,
commented:
"I'm pleased to report that the first quarter of 2011 brought
further success for the Company. Production and cash flow both
increased from the previous quarter. We expect to see material
production gains offshore as Bua Ban North B & A are tied in
beginning in July.
"Exploration results for the year to date have been outstanding.
Ten exploration wells have been drilled to date and nine of them
have been successful. The Miocene trend, which was first discovered
at Bua Ban, has proved to be a successful play at Bua Ban North A
& B. We are excited about the continued success with the
Miocene given the large number of Miocene prospects on our
concessions and the fact that the Miocene interval has the best
reservoir characteristics that have been seen in the basin.
"We look forward to the remainder of 2011. We expect to begin
testing Bua Ban North B in July following the completion of the
appraisal drilling. We will then move the rig to the Songkhla H
prospect, which is a potential high impact Miocene target. Songkhla
H is located outside of the Company's current production areas and
is a commitment well. Later in the year, we will return to Songkhla
A to further develop that field and restore production rates."
The following financial statements for the Company are
abbreviated versions. The Company's complete financial statements
for the three months ended March 31, 2011 with the notes thereto
and the related Management Discussion and Analysis can be found
either on Coastal's website at www.CoastalEnergy.com or on SEDAR at
www.sedar.com. All amounts are in US$ thousands, except share and
per share amounts.
Three Months ended March 31, 2011 2010
-------- ---------
$ $
Revenues and Other Income
Oil sales, net of royalties 66,711 45,860
Other income (21,084) 148
-------- ---------
45,627 46,008
-------- ---------
Expenses
Production 22,218 10,995
Depreciation and depletion 13,286 5,973
General and administrative 5,263 3,797
Exploration 5,553 9,267
Debt financing fees 234 124
Finance expense 1,162 732
-------- ---------
47,716 30,888
-------- ---------
Net (loss) income before income taxes, share of net
income from Apico LLC and non-controlling interest (2,089) 15,120
Share of net income from Apico LLC 3,256 2,984
-------- ---------
Net income before income taxes and non-controlling
interest 1,167 18,104
-------- ---------
Income taxes
Current - 964
Deferred 3,183 5,577
-------- ---------
3,183 6,541
-------- ---------
Net (loss) income and comprehensive (loss) income (2,016)
11,563
Net income attributable to non-controlling interest (346) 5
-------- ---------
Net (loss) income and comprehensive (loss) income
attributable to the shareholders of Coastal Energy
Company (2,362) 11,568
======== =========
Net income (loss) per share:
Basic $ (0.02) $ 0.11
Diluted $ (0.02) $ 0.10
March 31, December 31, January 1,
As at 2011 2010 2010
------------ ------------ ------------
$ $ $
Assets
Current Assets
Cash 15,912 3,884 21,229
Restricted cash 9,836 16,369 3,829
Accounts receivable 25,220 10,299 6,111
Derivative asset 144 135 66
Inventory 11,953 12,783 5,310
Prepaids and other current
assets 171 606 526
------------ ------------ ------------
Total current assets 63,236 44,076 37,071
Non-Current Assets
Exploration and evaluation
assets 42,114 31,068 44,907
Property, plant and equipment 244,182 246,248 189,534
Investment in and advances to
Apico LLC 49,614 47,261 55,225
Deposits and other assets 332 289 300
------------ ------------ ------------
Total non-current assets 336,242 324,866 289,966
------------ ------------ ------------
Total Assets 399,478 368,942 327,037
============ ============ ============
Liabilities
Current Liabilities
Accounts payable and accrued
liabilities 51,592 53,550 31,363
Deferred income - - 23,060
Current portion of long-term
debt 38,172 36,262 10,266
Amounts due to shareholder - - 5,164
Obligations under finance
leases 755 885 35
Current portion of derivative
liabilities 23,985 10,141 -
------------ ------------ ------------
Total current liabilities 114,504 100,838 69,888
Non-Current Liabilities
Long-term debt 40,412 35,081 24,284
Obligations under finance
leases 709 579 1,439
Non-current portion of
derivative liabilities 11,031 6,609 -
Deferred tax liabilities 15,068 11,885 23,653
Decommissioning liabilities 18,250 17,655 4,071
------------ ------------ ------------
Total Non-Current
Liabilities 85,470 71,809 53,447
Shareholders' Equity
Common shares 207,388 201,303 198,121
Contributed surplus 15,238 15,892 13,779
Warrants 29 79 153
Accumulated deficit (29,900) (27,538) (13,968)
------------ ------------ ------------
Total Coastal Energy Company
Shareholders' Equity 192,755 189,736 198,085
Non-Controlling Interest 6,749 6,559 5,617
------------ ------------ ------------
Total equity 199,504 196,295 203,702
------------ ------------ ------------
Total liabilities and equity 399,478 368,942 327,037
============ ============ ============
Three Months ended March 31, 2011 2010
-------- --------
$ $
Operating Activities
Net (loss) income attributable to the shareholders of
Coastal Energy Company (2,362) 11,568
Adjustments:
Share of net income from Apico LLC (3,256) (2,984)
Non-controlling interest 346 (5)
Unrealized loss on derivative instruments 18,257 65
Depletion and depreciation 13,286 5,973
Finance expense 946 384
Amortization of debt financing fees 234 -
Stock-based compensation 2,122 1,259
Deferred income taxes 3,183 5,577
Unrealized foreign exchange (gain) loss (149) -
Exploration expense 5,553 9,267
Income Taxes Paid - (6)
Interest income 1 2
Interest Paid (312) (510)
Earnings distributions from Apico LLC 903 541
Changes in Non-Cash Working Capital (Note 21) (7,315) (5,666)
-------- --------
31,437 25,465
Financing Activities
Issuance of common shares, net of issuance costs 4,693 1,840
Borrowings under long-term debt 6,275 -
Repayment of long-term debt - (4,979)
Repayment of amounts due to shareholder - (1,750)
-------- --------
10,968 (4,889)
Investing Activities
Increase in restricted cash 6,533 377
Purchase of property, plant and equipment (36,470) (36,332)
Deposits and other assets (43) (6)
(Payments to) contributions from non-controlling
interest (156) 750
-------- --------
(30,136) (35,211)
Effect of exchange rate changes on cash (241) 135
Increase (decrease) in cash 12,028 (14,500)
Cash - Beginning of period 3,884 21,229
-------- --------
Cash - End of period 15,912 6,729
======== ========
Randy Bartley, President and Chief Executive Officer of the
Company and a member of the Society of Petroleum Engineering and
Jerry Moon, Vice President, Technical & Business Development, a
member of the American Association of Petroleum Geologists, a
Licensed Professional Geoscientist and a Certified Petroleum
Geologist in the state of Texas, have reviewed the contents of this
announcement.
Additional information, including the Company's complete
competent person's report may be found on the Company's website at
www.CoastalEnergy.com or may be found in documents filed on SEDAR
at www.sedar.com.
This statement contains 'forward-looking statements' as defined
by the applicable securities legislation. Statements relating to
current and future drilling results, existence and recoverability
of potential hydrocarbon reserves, production amounts or revenues,
forward capital expenditures, operation costs, oil and gas price
forecasts and similar matters are based on current data and
information and should be viewed as forward-looking statements.
Such statements are not guarantees of future results and are
subject to risks and uncertainties beyond Coastal Energy's control.
Actual results may differ substantially from the forward-looking
statements.
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.
This news release is not for dissemination in the United States
or through United States newswire services
Enquiries: Coastal Energy Company +1 (713) 877-6793 Email: Email
Contact Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
3494 Rory Murphy Paul Cocker Macquarie Capital (Europe) Limited
(Broker) +44 (0) 20 3037 2000 Ben Colegrave Paul Connolly
FirstEnergy Capital LLP (Broker) +44 (0) 20 7448 0200 Hugh
Sanderson Travis Inlow Buchanan Communications +44 (0) 20 7466 5000
Tim Thompson Ben Romney Jonathan Rivlin
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