For the six month period ended June 30, 2006 the Company reported a net loss of $777,569 or $0.02 per share. This compares with a net loss of $272,683 or $0.01 per share for the second quarter ended June 30, 2005.
The Company recently filed and mailed an information circular relating to the merger with NuCoastal (Thailand) Limited and the acquisition of PH Gas's interest in APICO. The documents contain details of the enlarged company including the name change to Coastal Energy Company and are available on SEDAR.
The Company has also engaged the services of Orion Securities Inc. to manage the raising of up to US$40 million that will be used to further appraise and develop the offshore assets in the Gulf of Thailand and to drill additional exploration wells in the areas adjacent to the Phu Horm gas field located in the north east of Thailand.
The Phu Horm gas field has gross contracted proven reserves of 486 billion cubic feet of gas based on an independent engineering reports completed by Gaffney Cline and Associates dated July, 2006. Field development is currently nearing completion and production is expected to commence in Q4, 2006. Upon completion of the acquisitions of NuCoastal and the interest of PH Gas in APICO, the Company will hold a net 12.6% interest in the gas field and a 36.1% interest in the surrounding block where appraisal drilling on the southern extension of the Phu Horm field is planned for early next year.
The Company also confirmed that it has entered into a Letter of Intent with Seadrill Ltd. to secure the services of the West Janus (Seadrill 6) jack up drilling rig for appraisal/development drilling in the G5/43 block, Gulf of Thailand in Q2, 2007.
Drilling is also expected to commence over the Cobble Cuesta anticline in Nevada in the next few weeks. The Company has revised its original agreement which enabled it to earn a 50% interest in the block in return for paying 90% of the drilling costs and will now pay 45% of the drilling costs in return for a 30% interest in the asset.
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