Coastal Energy Company
01.08.2012 02:22
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HOUSTON, 2012-08-01 02:21 CEST (GLOBE NEWSWIRE) --
Coastal Energy Company (the 'Company' or 'Coastal Energy') (TSX:CEN) (AIM:CEO)
announces the results of an interim third party evaluation of its onshore and
offshore reserves in Thailand. RPS Energy Ltd. ('RPS') prepared a report dated
July 30, 2012, with an effective date of March 31, 2012, in accordance with the
guidelines established by the Society of Petroleum Engineers ('SPE'). The RPS
report was prepared to incorporate the Company's drilling results at Bua Ban
North & South in 2012 as well as information from core analyses which were
completed subsequent to the RPS report published on March 27, 2012, which had
an effective date of December 31, 2011. All comparisons made use the reserve
numbers from the report effective December 31, 2011 as the base.
Offshore Proved reserves (1P) increased by 30% to 81.0 mmbbl and offshore
Proved plus Probable reserves (2P) increased by 60% to 127.7 mmbbl. Total
company Proved reserves (1P) increased by 26% to 87.9 mmboe and total company
Proved plus Probable reserves (2P) increased by 45% to 149.1 mmboe.
The following table presents a summary of the recoverable oil volumes:
(in mboe) Offshore (Oil) Onshore (Gas) Total
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Class Bua Songkh Bua Bua Songkh Other Sinphu Dong
Ban la A Ban Ban la H horm Mun
North South Main
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1P 72.0 6.0 2.6 0.4 0.0 0.0 6.9 0.0 87.9
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2P 108.3 11.7 5.3 1.5 0.9 0.0 21.4 0.0 149.1
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3P 122.0 16.3 20.0 2.7 0.9 0.0 24.6 0.0 186.5
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Contingent 0.2 5.6 0.3 2.4 0.0 0.0 2.8 10.0 21.3
Resources
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Prospectiv 45.2 69.0 5.2 3.6 8.0 122.4 13.7 17.9 285.0
e
Resources
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The following table presents a summary of the net present values of future cash
flows (in USD millions):
Reserve Offshore Onshore Total Offshore Onshore Total
s Class Before Tax Before Before After Tax After Tax After Tax
PV10 Tax PV10 Tax PV10 PV10 PV10 PV10
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1P $3,456.3 $197.0 $3,653.3 $1,734.1 $135.0 $1,869.1
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2P $5,272.2 $376.0 $5,648.2 $2,246.7 $251.0 $2,497.7
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3P $6,543.7 $427.0 $6,970.7 $2,383.4 $285.0 $2,668.4
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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, 2011). 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 RPS Energy Ltd. dated as of July 31, 2012
(prepared in accordance with NI 51-101 and the COGE Handbook) which may be
found on the Company's website at www.coastalenergy.com. Onshore reserve and
resource numbers reflect Coastal's increased interest in APICO, which became
effective January 1, 2012.
Offshore
Bua Ban North
1P reserves increased by 29% to 72 mmbbl and 2P reserves increased by 60% to
108.3 mmbbl. The increase in reserves was driven by a substantial increase in
the stock tank oil originally in place (STOOIP) figure following analysis of
core samples from Bua Ban North. The core analyses indicate that the level of
water saturation in the field is approximately 25%; lower than the 40% level
which was being used to calculate the original STOOIP volumes. The STOOIP
number also increased due to the additional appraisal and development drilling
which was performed on the field in the first quarter (Bua Ban North B-12 &
B-13).
Bua Ban South
The Company booked 2.6 mmbbl of 1P reserves and 5.3 mmbbl of 2P reserves
following the exploration & appraisal program at Bua Ban South. A further 14.7
mmbbl was placed in the Possible reserves category, bringing the 3P reserves to
20.0 mmbbl. The Company expects that it will be able to re-categorize much of
the Possible reserves into 1P and 2P once production testing is performed.
Songkhla A & Bua Ban Main
2P reserves at Songkhla A and Bua Ban Main increased by 18% and 20%
respectively as reservoir performance in 2012 has been better than modeled.
Onshore
Dong Mun
Following the successful test of the Dong Mun sidetrack well (Coastal 39%
working interest) in the first quarter, the Company has recorded 59.7 bcf (10.0
mmboe of high quality contingent resources. This will be reclassified into 1P
and 2P reserves once a gas sales agreement is secured. The Company and its
partners in the onshore assets are currently working on the development plans
for the field as well as securing a sales agreement and evaluating pipeline
construction.
Operations Update
Two horizontal development wells and two water injection wells were drilled at
Bua Ban North. The two horizontal wells are producing approximately 1,800 bopd
each. Current offshore production is 22,500 bopd, with total company production
averaging 24,500 boepd.
The lack of aquifer support on the western side of the field had caused the
Company to shut in production from three of the existing wells (Bua Ban North
A-01, A-03 and A-11). Now that water injection has been established, the
Company will begin producing from these three wells again once pressure
rebuilds (expected to be in approximately 30 days).
The rig is currently undergoing regulatory inspections and will spud the
Songkhla J Buried Hill prospect following completion, which is expected next
week.
The Company has purchased the production facilities at Bua Ban North A, which
will reduce its lease operating costs going forward as well as provide tax
advantages. This brings the number of owned MOPUs to three.
Randy Bartley, President and CEO of Coastal Energy, commented:
'We are extremely pleased with the results of the interim reserves evaluation
by RPS. Bua Ban North continues to surprise to the upside. The core analysis
gave us a lot of valuable information about the reservoir and helped us to
better formulate our field wide development plan. We are looking to contract a
second rig so we can execute the Bua Ban North development while continuing our
exploration program and expansion into Malaysia.
'Drilling the much needed water injectors will help to bring production from
Bua Ban North back up to higher levels. We are already seeing increased rates
from the Bua Ban North A-08 well due to the pressure reinjection. We expect to
see benefits at the remaining wells on the western flank in the coming month as
the water injection brings pressures up throughout the western side of the
reservoir and we begin producing from the remaining three producers on that
side.
'The Songkhla J exploration prospect is a pre-Tertiary objective approximately
2.5 kilometers north of the discovery well at Songkhla H. The well is expected
to spud later this week and will be drilled to a depth of 6,700 feet. We have
also commenced the planned 3D seismic acquisition over Block G5/43.'
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.comor may be
found in documents filed on SEDAR at www.sedar.com.
The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
Glossary of Technical Terms & Definitions
The following defined terms have the respective meanings set out below:
1P Proved reserves.
2P Proved reserves + probable reserves.
3P Proved reserves + probable reserves + possible reserves
Develo A well drilled within the proved area of an oil or gas reservoir to the
pment depth of a stratigraphic horizon known to be productive.
well
Explor A well drilled to find a new field or to find a new reservoir in a field
atory previously found to be productive of oil or gas in another reservoir.
well
Proved Those reserves that can be estimated with a high degree of certainty to
reser be recoverable. It is likely that the actual remaining quantities
ves recovered will exceed the estimated proved reserves.
Probab Those additional reserves that are less certain to be recovered than
le proved reserves. It is equally likely that the actual remaining
reser quantities recovered will be greater or less than the sum of the
ves estimated proved + probable reserves.
Possib Those additional reserves that are less certain to be recovered than
le probable reserves. It is equally likely that the actual remaining
reser quantities recovered will be greater or less than the sum of the
ves estimated proved + probable + possible reserves.
Reserv The estimated remaining quantities of oil and natural gas and related
es substances anticipated to be recoverable from known accumulations, as
of a given date, based on the analysis of drilling, geological,
geophysical, and engineering data; the use of established technology;
and specified economic conditions, which are generally accepted as
being reasonable. Reserves are further classified according to the
level of certainty associated with the estimates and may be
subclassified based on development and production status.
Royalt A payment to the government or others, usually expressed as a percentage
ies of total hydrocarbon production.
CONTACT: Enquiries:
Coastal Energy Company
Email: investor@CoastalEnergy.com
+1 (713) 877-6793
Strand Hanson Limited (Nominated Adviser)
Rory Murphy
Paul Cocker
+44 (0) 20 7409 3494
Macquarie Capital (Europe) Limited (Broker)
Paul Connolly
Jeffrey Auld
+44 (0) 20 3037 2000
FirstEnergy Capital LLP (Broker)
Hugh Sanderson
Travis Inlow
+44 (0) 20 7448 0200
Buchanan (Financial PR)
Tim Thompson
Ben Romney
Helen Chan
+44 (0) 20 7466 5000
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News Source: NASDAQ OMX
01.08.2012 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Coastal Energy Company
3355 West Alabama
Houston TX 77098
Cayman Islands
Phone: +1 (713) 877-6725
Fax: +1 (713) 877-7144
E-mail: investor@coastalenergy.com
Internet: www.coastalenergy.com
ISIN: KYG224041189
WKN:
Listed: London, Toronto
End of Announcement DGAP News-Service
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DGAP-News: Coastal Energy Announces Results of Third Party Interim Reserves Evaluation
| Source: EQS Group AG