Coastal Energy announced the financial results for the quarter ended March 31, 2010. The functional and reporting currency of the Company is the United States dollar.
First Quarter 2010 Highlights
During Q1 2010, Coastal Energy continued to progress its offshore field development. Offshore oil production at Songkhla A has increased significantly since late 2009 and onshore gas production from Sinphuhorm has remained strong. Production from Songkhla A is currently averaging approximately 8,500 bbl/d. Offshore production at Songkhla A was restored to its full potential and the Company completed preparations for the development of its Bua Ban field.
Installation of the production and processing facilities at Bua Ban was completed in February. The drilling rig was mobilized to the Bua Ban platform in mid-May and the first well was spudded in late May. Surface casing has been set for the first five Bua Ban wells which will expedite the drilling process.
At Benjarong, installation of the MOPU was completed in late May and testing is anticipated to begin in the next two weeks with results expected by mid-July. Testing will be performed using a workover unit to reduce costs and allow the development of Bua Ban to proceed during testing. The Company anticipates further gains in offshore production as Bua Ban is developed.
Randy Bartley, President and CEO of Coastal Energy, commented, "Great progress has been achieved during the three months to March, with a significant increase in offshore oil production from Songkhla A and onshore gas production from Sinphuphorm remaining strong. We have set a solid foundation for 2010, when Coastal will see further increases in offshore production as Bua Ban is developed.
"Financial results have continued to improve as we have strived to control costs and deploy capital in a conservative manner. Coastal saw record EBITDAX, net income and earnings per share in the first quarter. We expect 2010 to continue to yield improving results for the Company and our shareholders."
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