HOUSTON, Nov. 26, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production company with assets in Thailand, today announced the following guidance for 2013:
- The Company expects total company production to average 33,000 boepd (net to Coastal) for the full year. This estimate includes 27,000 bopd from offshore Thailand, 2,300 boepd onshore Thailand and net production from Malaysia averaging 3,700 bopd (Production expected to begin in early Q3).
- The Company expects operating expenses to average approximately $19.00 per bbl offshore Thailand, well below 2012 levels as the Company realizes a full year of facilities purchases for its Thailand operations.
- Total capital expenditures are expected to be approximately $315MM, down from the estimated $360MM in 2012. 2012 capital expenditures were largely driven by substantial facilities purchases which will be significantly lower in 2013. The reduction in facilities expenditures is offset largely by the doubling of drilling capex as the Company adds a second drilling rig for the full year. The Company is also expecting to incur higher than average capex onshore in Thailand due to the beginning of pipeline construction and the development drilling at the Dong Mun field. The breakdown of the Company's capex budget is $200MM offshore Thailand, $40MM onshore Thailand and $75MM Malaysia.
Randy Bartley, President & CEO of Coastal Energy commented:
"As our guidance demonstrates, we expect a strong 2013. Our business is performing well and, given our highly prospective inventory, significant asset base, exploration success and growing oil production profile, we are well positioned to continue delivering value to our shareholders.
"We continue to be pleased with our operational results. The first hydraulic fracturing program at Bua Ban South is underway and initial results are encouraging. If successful, this would be a viable solution to unlocking the millions of barrels in lower porosity and permeability sands in the Songkhla basin. We expect to provide a comprehensive update on this program prior to year end.
"Coastal is anticipating a busy 2013 as we put a second drilling rig to work in Thailand. This will allow us to use one rig for development drilling and increasing production while simultaneously drilling several of the high-impact exploration prospects in our portfolio. We will also be working to bring our first oil online in Malaysia and will be moving toward producing our first gas from the Dong Mun field onshore Thailand. We expect to fund our capex budget entirely out of cash flow."
The Songkhla A-19 water injector has been drilled and encountered 292 feet of 17% porosity Lower Oligocene sand and will make an excellent injector for the south east block (A-10 & A-12) wells. The well also encountered 100 feet of high quality Miocene M100 sand with 20 to 35% oil saturation. Although, the Miocene here would not be commercially productive, it shows oil migration through the Miocene in the Songkhla area. The recently shot 3-D seismic program should help detect structural closures once processed and interpreted in Q113.
The Company also disclosed that it had been in discussions with Pertamina about a potential transaction, but those discussions have ended.
Said Mr. Bartley, "We are always evaluating our strategic alternatives, and we will continue to do so, but we will not undertake any transaction unless we believe it will deliver more value than our highly successful current strategy of organic growth."
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
CONTACT: Enquiries: Coastal Energy Company Email: investor@CoastalEnergy.com +1 (713) 877-6793 Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy / Scott McGregor Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037 2000 Paul Connolly / Jeffrey Auld FirstEnergy Capital LLP (Broker) Hugh Sanderson / Travis Inlow +44 (0) 20 7448 0200 Buchanan Tim Thompson / Ben Romney +44 (0) 20 7466 5000
Source:Coastal Energy Company