Coastal Energy: Reserves Upgrade
Coastal Energy Company says that Huddleston and Co. Inc. has completed its 2006 Competent Persons Report reserves evaluation in accordance with the TSX-V NI 51-101 regulations and the AIM Guidance Notes for Mining, Oil & Gas companies.
The Report highlights the following as of January 1, 2007:
- a 42% increase from January 1, 2006 in Coastal's Proven, Probable ('2P') reserves to 36.7 mmboe;
- a 55% increase from January 1, 2006 in Coastal's Proven, Probable and Possible ('3P') reserves to 45.3 mmboe; and
- Contingent resources of 177.1 mmboe net to Coastal (based on the high estimate).
In addition, the Company's overall gross 2P reserve estimate for the Phu Horm gas field has increased 72% from January 1, 2006 to 872 bcf.
The upgrade of reserves is based on additional technical information, including inter alia production data from the Phu Horm field and extensive reservoir simulations completed for the offshore fields which are currently under development. Reserve definitions are in accordance with the Society of Petroleum Engineers and the World Petroleum Congress 'Oil and Gas Reserved Definitions'.
Frank Inouye, Chief Executive Officer of Coastal Energy commented: 'Over the past six months we have focused our efforts on commercializing the Company's onshore and offshore assets in Thailand and I am pleased to say our efforts have been reflected in the reserves upgrades. The Company's near term objective is concentrated on appraising and developing these assets in order to provide the cash flow that will enable us to identify and secure additional 'orphaned' opportunities.'
Coastal Energy (TSX VENTURE:CEO)(AIM:CEO) is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand
- Specializes in identifying and developing under-exploited or 'orphaned' or assets. Management has proven experience at identifying and unlocking value from overlooked, abandoned, low risk assets with proven hydrocarbon potential
- This strategy has enabled the Company to assemble an asset base in Thailand that includes production of approximately 1,400(i) boepd of gas under long term contract and offshore oil fields currently under development
- Production growth over the next 12 -18 months is expected to grow exponentially and proven, probable and possible reserves are 45.3 million barrels oil equivalents
- Its current assets include:
- Offshore Thailand
- 100% of block G5/43 - 3 successful appraisal wells drilled in 2005 / 2 additional discoveries on the block awaiting appraisal / untested exploration potential on Songkhla Basin
- Onshore Thailand
- 12.6% working interest in blocks EU1 and E5N which include the Phu Horm gas field currently producing 100 mmcfd
- 36.1% interest in block L15/43 surrounding the Phu Horm field
- 36.1% interest in block L27/43 - containing the undeveloped Dong Mun gas field
- 21.7% interest in block L13/48 located adjacent to blocks L15/43 and L27/43, contains Si That discovery
(i) Gas converted at 6 mcf / barrel oil equivalent
- First Oil Flows from Banang Field in KBM Cluster Off Peninsular Malaysia (Sep 05)
- Coastal Energy Completes Merger With Cepsa's Unit (Jan 20)
- First Oil Flows from Kapal, Banang, Merantai Cluster off Peninsula Malaysia (Jan 13)