/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
OR THROUGH UNITED STATES NEWSWIRE SERVICES/
HOUSTON, Jan. 13 /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 an update of the
status of its operations offshore Thailand. The Mobile Offshore Production
Unit ("MOPU") which was scheduled to arrive on location in mid-January
incurred damage during a tropical storm and will need to be repaired prior to
installation. The Company estimates that repairs will delay production for
five weeks until late February.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"We view this as a very minor setback to bringing our offshore operations
online. Once we secure a vessel on location we can resume production, which we
continue to estimate at 9,000 boepd from Songkhla. Meanwhile, onshore
production continues at approximately 1,800 boepd. "
Additionally, the Company announces that it has increased the warrant
coverage ratio of the debt offering announced 22 December, 2008. Each $100,000
note offered will include 20,000 warrants for the Company's common stock
instead of the 10,000 warrants initially announced. There are no other changes
to the terms of the offering.
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
- 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. 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
- 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.
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.
(*) 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 to 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.
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"
For further information:
For further information: Enquiries: Coastal Energy Company, 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; KBC Peel Hunt Ltd (Nominated Adviser), Jonathan Marren, Matt Goode, +44
(0) 20 7418 8900