Drilling Activity in Third Quarter Boosts Songkhla Main Production
Coastal Energy has announced the financial results for the quarter ended September 30, 2009. The functional and reporting currency of the Company is the United States dollar.
Third Quarter Highlights
- EBITDAX of $6.8 million and $25.3 million for the three and nine months ended September 30, 2009.
- Resumption of the drilling campaign on the Company's Songkhla Field in the Gulf of Thailand.
- Commencement of a 2D seismic acquisition survey on the Company's northern acreage in Blocks G5/43 and G5/50.
- Crude Oil Sales of $21.2 million and $57.4 million for the three and nine months ended September 30, 2009.
- Net Loss of $0.1 million and $2.1 million for the three and nine months ended September 30, 2009.
Randy Bartley, Chief Executive Officer of Coastal Energy commented, "The third quarter of 2009 marked another significant milestone for Coastal Energy as the Company resumed development of its Songkhla field in the Gulf of Thailand. Thus far, the Company has drilled two additional development wells and three water injection wells. Total production from Songkhla Main has returned to over 10,000 bopd as a result of the recent drilling activity. Onshore production from Sinphuhorm is averaging approximately 2,000 boepd, bringing total Company production to over 12,000 boepd.
"We have secured an extension to the current drilling contract to keep the rig working through the first half of 2010. Once the development program at Songkhla Main is complete, we will move to the Songkhla B exploration prospect. Following drilling at Songkhla B, we plan to begin development of the Benjarong and Bua Ban fields.
"Coastal Energy is entering an exciting period and we are optimistic about our offshore development program and the potential value it could add to the Company. We expect the remainder of the fourth quarter and 2010 to bring further progress in the development of our offshore assets and further success for Coastal."
Note: EBITDAX is a non-GAAP measure and is defined as earnings before interest, financing fees, taxes, depreciation, amortization, exploration costs and other one-time items adjusted for non-cash items such as unrealized gains and losses on risk management contracts, unrealized foreign exchange gains or losses and stock-based compensation.
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