Coastal Highlights '09 Financial, Operational Results

Coastal announced the financial results for the year ended December 31, 2009.

Fourth Quarter 2009 Highlights

  • Total Company production averaged 7,391 boe/d for the fourth quarter.
  • The Company's fourth quarter EBITDAX was $12.2 million.
  • The Company drilled two development wells and three water injection wells on the Songkhla A field. Both development wells, Songkhla A-04 and Songkhla A-08, encountered oil in the Lower Oligocene reservoir and logged 100 feet and 92 feet of net pay with 20% and 18% porosity, respectively.

Full Year 2009 Highlights

  • Total Company production averaged 7,362 boe/d for the full year of 2009.
  • The Company's full year EBITDAX was $37.6 million.
  • The Company's full year net loss was $0.00 per share.
  • The Company released the results of its third-party reserve evaluation report prepared by Huddleston & Co. dated March 17, 2010 (effective date December 31, 2009)

Randy Bartley, President and CEO of Coastal Energy, commented, "The Company completed the latest phase of development drilling at Songkhla A in late Q409, in which two development wells and three water injection wells were drilled. As a result, average offshore production for Q110 increased to approximately 7,100 bopd. Following workover activities during Q110 on selected wells at Songkhla A, current average offshore production rates are approximately 9,500 bopd. Coastal's current combined production is 11,500 boe/d. 

"Coastal is now continuing to move forward with its offshore exploration program. Benjarong A-01 has been logged and is awaiting testing and Benjarong A-02 is currently being drilled. We expect to have results from the A-02 drilling and subsequent flow tests from both wells in the coming weeks. Following completion of work at Benjarong, the development program on the Bua Ban field will begin. 

"Now that the four producing wells at Songkhla A are online the Company is in a stronger cash flow position and is conservatively leveraged. 

"This was an important year in the history of the Company. Management is looking forward to another year of success and growth for Coastal Energy as we bring our second proven field onstream and further improve our cash flow profile."