HOUSTON, Nov. 15, 2011 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production company with assets in Thailand, announces the financial results for the three and nine months ended September 30, 2011. The functional and reporting currency of the Company is the United States dollar.
Third Quarter 2011 Highlights
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Total Company production in Q3 was 12,028 boe/d (10,191 bbl/d offshore and 1,837 boe/d onshore). The Company's offshore production was bolstered by the discovery at Bua Ban North B, which averaged 4,830 bbld/ for the quarter. Production at Bua Ban North B exited Q3 at over 8,000 bbl/d. Production gains at Bua Ban North B were slightly offset by lower rates at Songkhla A due to process equipment temperature restrictions. Production at Songkhla A was restored to 6,000 bbl/d by the end of Q3 following installation of additional cooling units. At September 30, offshore production was approximately 15,500 bbl/d and onshore production was approximately 2,000 boe/d.
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EBITDAX for the nine months ending September 30, 2011 was $126.6 million, 15% above the same period in 2010. Revenue and EBITDAX were negatively impacted by lower lifting volumes during the period, which resulted in inventory of approximately 380,000 barrels at the end of Q3. Crude oil inventory was approximately 255,000 barrels higher than in the same period in 2010. This inventory balance will be recognized in Q4.
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The Company announced several successful exploration and appraisal wells at Bua Ban North A. The results of these wells confirm that Bua Ban North A & B are in communication on the western side of the structure. Completion and flow testing is expected to begin at Bua Ban North A in mid-Q4 2011.
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The Company received approval to list its shares on the main board of the Toronto Stock Exchange. Its Common Shares began trading on the TSX on July 5, 2011 under the ticker symbol "CEN".
- As of today, the Company has $42MM of cash and equivalents.
Randy Bartley, President and CEO of Coastal Energy, commented:
"I'm pleased to report that in the third quarter Coastal continued to build on the progress made in the first half of 2011. The exploration program at Bua Ban North A & B experienced further success during the quarter with recent drilling results confirming that the two fields are connected on the western side of the structure. Production facilities are on location at Bua Ban North A and we will begin bringing production online in the coming weeks.
"Coastal has also enjoyed continuing financial success in 2011. We expect to post significant production and EBITDAX increases in the coming quarters driven by our recent discoveries. We expect to exit the year with over 20,000 bbl/d of offshore production and over 22,000 boe/d of total Company production.
"We plan to continue building on this success as we appraise these Miocene discoveries. The Miocene trend is proving to be prolific in the Songkhla basin and we have several Miocene exploration prospects that we plan to drill beginning at the first of the year."
The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three and nine months ended September 30, 2011 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal's website at www.CoastalEnergy.com or on SEDAR at www.sedar.com. All amounts are in USD thousands, except share and per share amounts.
| Three months ended | Nine months ended | |||
| September 30, | September 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Revenues and Other Income | ||||
| Oil sales, net of royalties (Note 16) | 75,375 | 61,860 | 201,696 | 146,730 |
| Other income (Note 17) | 10,717 | (295) | (12,394) | (114) |
| 86,092 | 61,565 | 189,302 | 146,616 | |
| Expenses | ||||
| Production | 27,148 | 16,124 | 66,490 | 35,330 |
| Depreciation and depletion (Note 7) | 13,308 | 8,343 | 38,292 | 18,000 |
| General and administrative | 7,802 | 4,334 | 19,522 | 12,226 |
| Exploration (Note 6) | 345 | 26 | 6,829 | 9,384 |
| Debt financing fees | 258 | 23 | 523 | 266 |
| Finance (Note 15) | 913 | 722 | 3,276 | 2,203 |
| Gains on disposal of property, plant and equipment | (873) | -- | (873) | -- |
| 48,901 | 29,572 | 134,059 | 77,409 | |
| Net income before income taxes, share of net income from Apico LLC and non-controlling interest | 37,191 | 31,993 | 55,243 | 69,207 |
| Share of net income from Apico LLC (Note 8) | 4,436 | 2,709 | 11,964 | 8,849 |
| Net income before income taxes and non-controlling interest | 41,627 | 34,702 | 67,207 | 78,056 |
| Income taxes (Note 21) | ||||
| Current | 135 | -- | 135 | -- |
| Deferred | 22,493 | 9,872 | 37,681 | 29,082 |
| 22,628 | 9,872 | 37,816 | 29,082 | |
| Net loss from discontinued operations (Note 18) | ||||
| Net income and comprehensive income | 18,999 | 24,830 | 29,391 | 48,974 |
| Net (income) loss and comprehensive (income) loss attributable to non-controlling interest | 14 | 247 | (924) | 197 |
| Net income and comprehensive income attributable to the shareholders of Coastal Energy Company | 19,013 | 25,077 | 28,467 | 49,171 |
| Net income per share: | ||||
| Basic (Note 19) | 0.17 | 0.23 | 0.25 | 0.45 |
| Diluted (Note 19) | 0.16 | 0.22 | 0.25 | 0.44 |
| The accompanying notes are an integral part of these condensed interim consolidated financial statements. | ||||
| September 30, | December 31, | January 1, | |
| As at | 2011 | 2010 | 2010 |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 8,594 | 3,884 | 21,229 |
| Restricted cash | 14,525 | 16,369 | 3,829 |
| Accounts receivable (Note 4) | 16,894 | 10,299 | 6,111 |
| Derivative asset (Note 12) | 207 | 135 | 66 |
| Inventory (Note 5) | 16,255 | 12,783 | 5,310 |
| Prepaids and other current assets | 30 | 606 | 526 |
| Total current assets | 56,505 | 44,076 | 37,071 |
| Non-Current Assets | |||
| Exploration and evaluation assets (Note 6) | 67,689 | 31,068 | 44,907 |
| Property, plant and equipment (Note 7) | 279,564 | 246,248 | 189,534 |
| Investment in and advances to Apico LLC (Note 8) | 50,915 | 47,261 | 55,225 |
| Deposits and other assets | 414 | 289 | 300 |
| Total non-current assets | 398,582 | 324,866 | 289,966 |
| Total Assets | 455,087 | 368,942 | 327,037 |
| Liabilities | |||
| Current Liabilities | |||
| Accounts payable and accrued liabilities (Note 9) | 57,526 | 53,550 | 31,363 |
| Deferred income (Note 10) | -- | -- | 23,060 |
| Current portion of long-term debt (Note 12) | 29,208 | 36,262 | 10,266 |
| Amounts due to shareholder (Note 11) | -- | -- | 5,164 |
| Obligations under finance leases | -- | 885 | 35 |
| Current portion of derivative liabilities (Note 12) | 11,612 | 10,141 | -- |
| Total current liabilities | 98,346 | 100,838 | 69,888 |
| Non-Current Liabilities | |||
| Long-term debt (Note 12) | 48,918 | 35,081 | 24,284 |
| Obligations under finance leases | -- | 579 | 1,439 |
| Non-current portion of derivative liabilities (Note 12) | 704 | 6,609 | -- |
| Deferred tax liabilities | 49,566 | 11,885 | 23,653 |
| Decommissioning liabilities (Note 13) | 24,347 | 17,655 | 4,071 |
| Total Non-Current Liabilities | 123,535 | 71,809 | 53,447 |
| Shareholders' Equity (Note 19) | |||
| Common shares | 209,279 | 201,303 | 198,121 |
| Contributed surplus | 16,092 | 15,892 | 13,779 |
| Warrants | 29 | 79 | 153 |
| Retained earnings (accumulated deficit) | 929 | (27,538) | (13,968) |
| Total Coastal Energy Company Shareholders' Equity | 226,329 | 189,736 | 198,085 |
| Non-Controlling Interest | 6,877 | 6,559 | 5,617 |
| Total equity | 233,206 | 196,295 | 203,702 |
| Total liabilities and equity | 455,087 | 368,942 | 327,037 |
| Commitments and contingencies (Note 20) | |||
| The accompanying notes are an integral part of these condensed interim consolidated financial statements. | |||
| Three months ended | Nine months ended | |||
| September 30, | September 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Operating activities | ||||
| Net income attributable to the shareholders of Coastal Energy Company | 19,013 | 25,077 | 28,467 | 49,171 |
| Adjustments: | ||||
| Share of net income from Apico LLC | (4,436) | (2,709) | (11,964) | (8,849) |
| Non controlling interest | (14) | (247) | 924 | (197) |
| Unrealized (gain) loss on derivative instruments | (15,019) | -- | (4,506) | 66 |
| Depletion and depreciation | 13,308 | 8,343 | 38,292 | 18,000 |
| Finance expense | 913 | 722 | 3,276 | 2,203 |
| Amortisation of debt financing fees | 248 | -- | 513 | -- |
| Stock-based compensation | 1,941 | 720 | 7,687 | 3,871 |
| Deferred income taxes | 22,493 | 9,872 | 37,681 | 29,082 |
| Unrealized foreign exchange loss | (577) | -- | (120) | 144 |
| Exploration expense | 345 | 26 | 6,829 | 9,384 |
| Gains on disposal of property, plant and equipment | (873) | -- | (873) | -- |
| Income taxes paid | (86) | -- | (86) | (6) |
| Interest income | 2 | 1 | 4 | 4 |
| Interest paid | (405) | (864) | (2,699) | (1,907) |
| Earnings distributions from Apico LLC | 7,588 | 6,142 | 9,756 | 10,296 |
| Change in non-cash working capital (Note 22) | 1,555 | (41,167) | (3,180) | (27,523) |
| 45,996 | 5,916 | 110,001 | 83,739 | |
| Financing Activities | ||||
| Issuance of common shares, net of issuance costs | 666 | 166 | 6,108 | 2,052 |
| Borrowings under long-term debt | -- | 58,727 | 6,275 | 58,727 |
| Repayment of long-term debt | -- | (28,571) | -- | (34,550) |
| Loan arrangement fees | (71) | (2,521) | (419) | (2,521) |
| Repayment of amounts due to shareholder | -- | (3,161) | -- | (5,164) |
| Other | (131) | -- | (506) | -- |
| 464 | 24,640 | 11,458 | 18,544 | |
| Investing Activities | ||||
| Decrease (increase) in restricted cash | 6,347 | (4,342) | 1,844 | (3,550) |
| Purchase of property, plant and equipment | (45,576) | (10,970) | (115,468) | (100,834) |
| Advances to Apico LLC | -- | -- | (1,446) | -- |
| Proceeds from disposal of property, plant and equipment | 250 | -- | 250 | -- |
| Deposits and other assets | (122) | -- | (125) | (6) |
| (Payments to) deposits from non-controlling interest | (450) | -- | (606) | 750 |
| (39,551) | (15,312) | (115,551) | (103,640) | |
| Effect of exchange rate changes on cash | (501) | (26) | (1,198) | (7) |
| Increase (decrease) in cash | 6,408 | 15,218 | 4,710 | (1,364) |
| Cash - Beginning of period | 2,186 | 4,647 | 3,884 | 21,229 |
| Cash - End of period | 8,594 | 19,865 | 8,594 | 19,865 |
| The accompanying notes are an integral part of these condensed interim consolidated financial statements. | ||||
Randy Bartley, President and Chief Executive Officer of the Company and a member of the Society of Petroleum Engineering and Jerry Moon, Vice President, Technical & Business Development, a member of the American Association of Petroleum Geologists, a Licensed Professional Geoscientist and a Certified Petroleum Geologist in the state of Texas, have reviewed the contents of this announcement.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
Additional information, including the Company's complete competent person's report may be found on the Company's website at www.CoastalEnergy.comor may be found in documents filed on SEDAR at www.sedar.com.
This statement contains 'forward-looking statements' as defined by the applicable securities legislation. Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas price forecasts and similar matters are based on current data and information and should be viewed as forward-looking statements. Such statements are not guarantees of future results and are subject to risks and uncertainties beyond Coastal Energy's control. Actual results may differ substantially from the forward-looking statements.