Coastal Energy Company (the "Company" or "Coastal Energy") (TSX-V:
CEN) (AIM: CEO), an independent exploration and production company
with assets in Thailand, announces the financial results for the
year ended December 31, 2009. The functional and reporting currency
of the Company is the United States dollar.
Fourth Quarter 2009 Highlights
-- Total Company production averaged 7,391 boe/d for the fourth quarter.
-- The Company's fourth quarter EBITDAX was $12.5 million.
-- The Company drilled two development wells and three water injection
wells on the Songkhla A field. Both development wells, Songkhla A-04
and Songkhla A-08, encountered oil in the Lower Oligocene reservoir
and logged 100 feet and 92 feet of net pay with 20% and 18% porosity,
respectively.
Full Year 2009 Highlights
-- Total Company production averaged 7,362 boe/d for the full year of
2009.
-- The Company's full year EBITDAX was $37.9 million.
-- The Company's full year net loss was $0.00 per share.
-- The Company released the results of its third-party reserve
evaluation report prepared by Huddleston & Co. dated March 17, 2010
(effective date December 31, 2009)
As of As of
December December After-Tax After-Tax
31, 2009 31, 2008 NPV 2009 NPV 2008 %
(mmboe) (mmboe) (US$MM) (US$MM) Change
----------- ----------- ----------- ----------- ------
Proven
Offshore 15.2 18.1 $ 345.2 $ 284.1 21.5 %
Onshore 8.0 8.5 107.4 69.5 54.5 %
----------- ----------- ----------- ----------- ------
Total 1P 23.2 26.6 452.6 353.6 28.0 %
----------- ----------- ----------- ----------- ------
Proven + Probable
Offshore 32.9 41.5 $ 577.1 $ 497.7 16.0 %
Onshore 22.1 20.7 203.5 112.9 80.2 %
----------- ----------- ----------- ----------- ------
Total 2P 55.0 62.2 780.6 610.6 27.8 %
----------- ----------- ----------- ----------- ------
Note: Reserve figures are shown as net working interest before royalties
(Thailand royalty regime is discussed in the MD&A of the Company's Annual
Report dated December 31, 2009). After-tax NPV figures are defined as
future net revenues discounted at 10%. Reserve numbers taken from the
Company's competent person's report prepared by Huddleston & Co. dated as
of December 31, 2009 (prepared in accordance with NI 51-101 and the COGE
Handbook) which may be found on the Company's website at
www.coastalenergy.com.
Randy Bartley, President and CEO of Coastal Energy,
commented:
"The Company completed the latest phase of development drilling
at Songkhla A in late Q409, in which two development wells and
three water injection wells were drilled. As a result, average
offshore production for Q110 increased to approximately 7,100 bopd.
Following workover activities during Q110 on selected wells at
Songkhla A, current average offshore production rates are
approximately 9,500 bopd. Coastal's current combined production is
11,500 boe/d.
"Coastal is now continuing to move forward with its offshore
exploration program. Benjarong A-01 has been logged and is awaiting
testing and Benjarong A-02 is currently being drilled. We expect to
have results from the A-02 drilling and subsequent flow tests from
both wells in the coming weeks. Following completion of work at
Benjarong, the development program on the Bua Ban field will
begin.
"Now that the four producing wells at Songkhla A are online the
Company is in a stronger cash flow position and is conservatively
leveraged.
"This was an important year in the history of the Company.
Management is looking forward to another year of success and growth
for Coastal Energy as we bring our second proven field onstream and
further improve our cash flow profile."
The following financial statements for the Company are
abbreviated versions. The Company's complete financial statements
for the three and twelve months ended December 31, 2009 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.
CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
2009 2008
---------- ----------
$ $
Revenues
Oil and natural gas 86,348 4,098
Royalties (5,878) (214)
(Loss) gain on derivative (Note 13) (2,077) 2,447
Interest income 27 982
Other income 110 -
---------- ----------
78,530 7,313
---------- ----------
Expenses and other
Production 33,477 1,597
General and administrative 19,576 12,824
Foreign exchange loss 1,941 3,869
Interest 3,839 2,146
Debt financing fees (Note 12) 1,454 -
Depletion, depreciation and accretion 23,695 1,893
Settlement (Note 8) 2,366 -
Loss (gain) on sale of assets 148 (217)
---------- ----------
86,496 22,112
---------- ----------
Net loss before taxes, earnings from significantly
influenced investee and non-controlling interest (7,966) (14,799)
Income taxes (Note 18) 738 666
---------- ----------
Net loss before earnings from significantly
influenced investee and non-controlling interests (8,704) (15,465)
Earnings from significantly influenced investee
(Note 7) 8,462 12,904
---------- ----------
Net loss before non-controlling interests (242) (2,561)
Non-controlling interest (Note 4) 127 -
---------- ----------
Net loss and comprehensive loss (115) (2,561)
Deficit, beginning of year (16,587) (14,026)
---------- ----------
Deficit, end of year (16,702) (16,587)
========== ==========
Basic and diluted loss per share (Note 15) 0.00 (0.03)
========== ==========
Weighted average number of common shares
outstanding 98,243,701 93,262,551
========== ==========
CONSOLIDATED BALANCE SHEETS
2009 2008
---------- ----------
$ $
Assets
Current assets
Cash and cash equivalents 21,229 6,434
Restricted cash (Note 5) 3,829 4,146
Accounts receivable and other (Note 6) 6,111 2,391
Derivative asset (Note 13) 66 2,016
Crude oil inventory 5,310 308
Prepaids and other current assets 526 271
---------- ----------
37,071 15,566
Investment in and advances to Apico LLC (Note 7) 55,225 50,376
Property, plant and equipment, net (Note 8) 233,014 192,224
Other long-term assets 299 297
---------- ----------
Total Assets 325,609 258,463
========== ==========
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 9) 31,325 35,536
Deferred income (Note 10) 23,060 -
Income taxes payable (Note 18) 38 1,252
Amounts due to shareholder (Note 11) 5,164 6,761
Current portion of long-term debt (Note 13) 10,266 15,249
---------- ----------
69,853 58,798
Long-term debt (Note 13) 24,284 28,751
Asset retirement obligations (Note 14) 2,809 1,354
Future income tax liability (Note 18) 27,695 25,984
---------- ----------
Total Liabilities 124,641 114,887
---------- ----------
Commitments and contingencies (Note 19)
---------- ----------
Non-controlling interests (Note 4) 5,617 -
---------- ----------
Shareholders' equity
Share capital (Note 15) 198,121 146,938
Contributed surplus (Note 15) 13,779 13,225
Warrants (Note 15) 153 -
Deficit (16,702) (16,587)
---------- ----------
195,351 143,576
---------- ----------
325,609 258,463
========== ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
2009 2008
---------- ----------
$ $
Operating activities
Net loss for the year (115) (2,561)
Earnings distributions from significantly
influenced investee 8,129 16,619
Items not involving cash:
Depletion, depreciation and accretion 23,695 1,893
Impairment 1,765 -
Future income taxes 700 (1,818)
Unrealized foreign exchange loss (gain) 909 (751)
Loss applicable to non-controlling interest (127) -
Stock based compensation 8,021 2,080
Issuance of warrants with notes payable 294 -
Share of earnings of significantly influenced
investee, net of taxes (8,462) (12,904)
Unrealized (gain) loss on derivative instrument 1,950 (2,015)
(Gain) loss on sale of assets 148 (217)
Change in non-cash working capital (Note 20) 17,095 2,016
---------- ----------
Cash provided by operating activities of
continuing operations 54,002 2,342
Investing activities
Investment in and advances to Apico LLC (4,516) (903)
Increase in restricted cash 317 (2,098)
Purchase of property, plant and equipment (77,671) (82,645)
Proceeds from sale of property and equipment - 1,053
Proceeds from non-controlling interest 5,744 -
Acquisition of other long-term assets (2) (241)
---------- ----------
Cash used in investing activities (76,128) (84,834)
---------- ----------
Financing activities
Issuance of shares for cash 52,306 55,119
Transaction costs associated with issuance of
shares (2,984) (245)
Borrowings under long-term debt 1,620 45,000
Repayments under long-term debt (11,070) (26,000)
Borrowings under notes payable 15,000 -
Repayments under notes payable (15,000) -
Borrowings under amounts due to shareholder 1,000 2,000
Repayments under amounts due to shareholder (3,000) -
---------- ----------
Cash provided by financing activities 37,872 75,874
---------- ----------
Net effect of foreign exchange on cash held in
foreign currencies (951) (97)
---------- ----------
Change in cash and cash equivalents 14,795 (6,715)
Cash and cash equivalents, beginning of year 6,434 13,149
---------- ----------
Cash and cash equivalents, end of year 21,229 6,434
========== ==========
Cash and cash equivalents consists of:
Cash 21,229 5,606
Short-term money market instruments - 828
---------- ----------
21,229 6,434
========== ==========
Supplemental cash flow information (Note 20)
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 Randy L. Bartley, Chief
Executive Officer +1 713 877 6705 William C. Phelps, Chief
Financial Officer +1 713 877 6727 Email: Email Contact Strand
Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy
Paul Cocker Thomas Weisel Partners (Broker) +44 (0) 20 7877 4300
Paul Colucci Macquarie Capital (Europe) Limited (Broker) +44 (0) 20
3037 2000 Ben Colegrave Paul Connolly Buchanan Communications +44
(0) 20 7466 5000 Tim Thompson Catherine Breen Katharine Sutton
Claren Energy (TSXV:CEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Claren Energy (TSXV:CEN)
Historical Stock Chart
From Jul 2023 to Jul 2024
