Coastal Energy Company announces the financial results for the first quarter ended March 31, 2008. The functional and reporting currency of the Company is the United States dollar.
$2,868,000 of earnings from Coastal's 36.1% investment in Apico LLC (1Q '07: $1,563,000)
Net loss of $3,961,000 or $0.04 per share (1Q '07 loss: $739,000 or $0.01 per share)
$57.6 million raised via a 'bought-deal' agreement with Macquarie Capital Markets Canada Ltd
Total assets increased to $186.3 million from $157.7 million at December 31, 2007
The Phu Horm gas field, in which the Company has a net 12.6% indirect interest, was producing in excess of 100 mmcf/day of gas at the end of the first quarter.
The Company acquired a 24,000-ton vessel for $8 million and began refurbishing it to serve as a floating storage and off-loading unit in connection with the development of the Company's Gulf of Thailand properties.
The Company furthered the technical and field development on the 100% owned and operated offshore Gulf of Thailand Block G5/43. The technical team has established numerous new prospects offshore based on the recently processed 3-D seismic program of 2007.
The Company announced an increase in its 2007 year end reserves, including a 28% increase in total proven (1P) reserves to 19.0 mmboe and a 50% increase in offshore proven + probable (2P) reserves to 26.7 mmboe
The Company participated in the drilling of the Dong Mun 3 "DM3" appraisal well via its 36.1% interest in Apico, LLC. DM3 reached a total depth of 3,127 meters and encountered numerous gas shows in the Jurassic, Triassic and Permian sections. The most significant shows were encountered in the Jurassic and Triassic sands above the main reservoir target, the Pha Nok Khao ("PNK") formation. Coastal intends to drill an additional well higher on the structure later this year to test the shallower Jurassic potential.
"The Company has made great progress in the first quarter towards getting its offshore Thailand properties into production," said Randy Bartley, CEO of Coastal. "The following key objectives were achieved: acquisition of a tanker for FSO conversion, continued construction of our wellhead and processing platforms for the Songkhla development, and opening our Songkhla warehouse facility. In addition, we have staffed up our Bangkok technical team which has already identified numerous new prospects in our Gulf of Thailand concession."