Coastal Energy announced the financial results for the quarter ended June 30, 2010. The functional and reporting currency of the Company is the USD.
Second Quarter 2010 Highlights
During the second quarter Coastal Energy began developing its second proven offshore field in the Gulf of Thailand. The first three wells, Bua Ban A-01, A-02 and A-05, were drilled and logged during June. All three encountered oil in the Lower Oligocene reservoir, and the Bua Ban A-05 well encountered two additional productive pay zones in the Lower Oligocene reservoir. These reservoirs had not been seen in previous wells. An appraisal well has been scheduled for September to determine the extent of these reservoirs.
To date two additional wells, Bua Ban A-03 and A-06, have been drilled and completed in the third quarter and have both encountered oil in the Lower Oligocene reservoir. The Bua Ban A-03 well also encountered oil in the Miocene reservoir. This is the first time productive Miocene sands have been encountered in Block G5/43. All five Bua Ban wells have been completed and tied in to production facilities. Our current offshore production rate is approximately 11,800 bopd and total production is approximately 13,800 boe/d.
Randy Bartley, President and CEO of Coastal Energy, commented, "As we pass the midway point of 2010, I am pleased to report the great strides the Company has made this year. Production at Songkhla A in the second quarter was 18% higher than the year ago period. Our EBITDAX has doubled from the same period a year ago and net income is over seven times what it was in the second quarter of 2009."
"There is further potential at Bua Ban that we will be evaluating in the coming months which could bring additional upside for the Company. Following several additional development and exploration wells at Bua Ban, we have exploration prospects at Bua Ban North that we will begin drilling in the fourth quarter. As we move forward through the remainder of 2010, we will continue to strive for further success in the development of our offshore assets."
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