HOUSTON, May 14, 2012 (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 months ended March 31, 2012. The functional and reporting currency of the Company is the United States dollar.
First Quarter 2012 Highlights
- The Company reported record levels of production, cash flow and earnings in the first quarter of 2012. Total Company production increased by 125% to 22,773 boe/d in the first quarter from 10,125 boe/d in the same period last year. The Company's offshore production was 21,031 bbl/d, with the increase due to the inclusion of production from both platforms at Bua Ban North. Onshore production of 1,742 boe/d increased from Q4 '11 levels as natural gas demand recovered following the flooding in Thailand in late 2011. Onshore production was below Q1 '11 due to the aftermath of the 2011 flooding as well as the power plant at Nam Phong being shut down for maintenance for approximately 5 days during the quarter.
- EBITDAX for Q1 2012 was $128.4 million, 202% higher than the $42.5 million recorded in Q1 2011. Revenue and EBITDAX were driven higher by increased production and commodity prices. Crude oil inventory was approximately 569,258 barrels at March 31, 2012, the revenue from which will be recognized in the second quarter. The Company added 232,924 barrels (approximately 41%) during the current quarter.
- The Company announced successful discoveries in the Miocene and Oligocene reservoirs at Bua Ban South. The discoveries have been appraised and determined to be commercial.
- The Company acquired an additional 2.9% of Apico LLC, which holds its onshore oil & gas concessions. This brings its working interest in the Sinphuhorm field to 13.7%.
Randy Bartley, President and CEO of Coastal Energy, commented:
"The first quarter of 2012 built upon the Company's success in 2011. The Company recorded record levels of production, cash flow and profits. We also delivered another successful exploration discovery at Bua Ban South in both the Miocene and Lower Oligocene reservoirs. We plan to drill further appraisal wells to delineate the discovery once production facilities arrive on location in the third quarter.
"We purchased two production facilities in the first quarter, one at Songkhla A and one for Bua Ban South. We plan to continue using a portion of our free cash flow to acquire currently leased production facilities to reduce our operating costs. We are also evaluating bringing in an additional drilling rig to accelerate our exploration and development program.
"2012 is off to a great start. We all look forward to another successful year with Coastal."
The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three months ended March 31, 2012 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal's website at www.CoastalEnergy.com or on SEDAR at www.sedar.com. All amounts are in US$ thousands, except share and per share amounts.
| Three Months Ended March 31, | 2012 | 2011 |
| Revenues and Other Income | ||
| Oil sales, net of royalties (Note 12) | 168,836 | 66,711 |
| Other income (Note 13) | (10,171) | (21,084) |
| 158,665 | 45,627 | |
| Expenses | ||
| Production | 36,210 | 22,218 |
| Depreciation and depletion (Note 7) | 20,044 | 13,286 |
| General and administrative | 8,327 | 5,263 |
| Exploration (Note 6) | -- | 5,553 |
| Debt financing fees | 281 | 234 |
| Finance | 1,006 | 1,162 |
| 65,868 | 47,716 | |
| Net income (loss) before income taxes and share of | ||
| Net income from Apico LLC | 92,797 | (2,089) |
| Share of net income from Apico LLC (Note 8) | 4,007 | 3,256 |
| Net income before income taxes | 96,804 | 1,167 |
| Income taxes (Note 17) | ||
| Current | 36,608 | -- |
| Deferred | 11,703 | 3,183 |
| 48,311 | 3,183 | |
| Net loss from discontinued operations (Note 18) | ||
| Net income (loss) and comprehensive income (loss) | 48,493 | (2,016) |
| Net income (loss) and comprehensive income (loss) attributable to: | ||
| Shareholders of Coastal Energy | 48,135 | (2,362) |
| Non-controlling interest | 358 | 346 |
| 48,493 | (2,016) | |
| Net income (loss) per share: | ||
| Basic (Note 15) | 0.42 | (0.02) |
| Diluted (Note 15) | 0.40 | (0.02) |
| The accompanying notes are an integral part of these condensed interim consolidated financial statements (unaudited). | ||
| March 31 | December 31, | |
| As at | 2011 | 2011 |
| $ | $ | |
| Assets | ||
| Current Assets | ||
| Cash | 40,900 | 22,995 |
| Restricted cash (Note 3) | 6,411 | 28,447 |
| Accounts receivable (Note 4) | 32,476 | 16,939 |
| Derivative asset (Note 11) | 83 | 59 |
| Inventory (Note 5) | 19,637 | 14,161 |
| Prepaids and other current assets | 346 | 1,094 |
| Total current assets | 99,853 | 83,695 |
| Non-Current Assets | ||
| Exploration and evaluation assets (Note 6) | 43,392 | 31,881 |
| Property, plant and equipment (Note 7) | 379,736 | 355,052 |
| Investment in and advances to Apico LLC (Note 8) | 60,955 | 47,698 |
| Deposits and other assets | 405 | 405 |
| Total non-current assets | 484,488 | 435,036 |
| Total Assets | 584,341 | 518,731 |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable and accrued liabilities (Note 9) | 90,832 | 59,471 |
| Current portion of long-term debt (Note 11) | 16 | 55,662 |
| Current portion of derivative liabilities (Note 11) | 19,192 | 14,557 |
| Derivative liability - Warrants (Note 10) | 2,899 | 2,853 |
| Total current liabilities | 112,939 | 132,543 |
| Non-Current Liabilities | ||
| Long-term debt (Note 11) | 47,353 | 22,156 |
| Non-current portion of derivative liabilities (Note 11) | 670 | 1,274 |
| Deferred tax liabilities | 81,470 | 69,767 |
| Decommissioning liabilities | 39,899 | 42,124 |
| Total Non-Current Liabilities | 169,392 | 135,321 |
| Shareholders' Equity (Note 15) | ||
| Common shares | 213,491 | 211,554 |
| Contributed surplus | 17,453 | 16,401 |
| Warrants | -- | -- |
| Retained earnings | 65,238 | 17,630 |
| Total Shareholders' Equity | 296,182 | 245,585 |
| Non-controlling interest | 5,828 | 5,282 |
| Total equity | 302,010 | 250,867 |
| Total liabilities and equity | 584,341 | 518,731 |
| Commitments and contingencies (Note 16) | ||
| The accompanying notes are an integral part of these condensed interim consolidated financial statements (unaudited). | ||
| Three Months Ended March 31, | 2012 | 2011 |
| Operating activities | ||
| Net income (loss) | 48,493 | (2,016) |
| Adjustments: | ||
| Share of net income from Apico LLC | (4,007) | (3,256) |
| Unrealized loss on derivative instruments | 4,007 | 18,257 |
| Depletion and depreciation | 20,044 | 13,286 |
| Finance expense | 1,006 | 946 |
| Amortisation of debt financing fees | 281 | 234 |
| Stock-based compensation | 2,991 | 2,122 |
| Deferred income taxes | 11,703 | 3,183 |
| Unrealized foreign exchange loss (gain) | 92 | (149) |
| Exploration expense | -- | 5,553 |
| Interest received | 2 | 1 |
| Interest paid | (721) | (312) |
| Earnings distributions from Apico LLC | -- | 903 |
| Change in non-cash working capital (Note 18) | (3,014) | (7,315) |
| Cash flow provided by operating activities | 80,877 | 31,437 |
| Financing Activities | ||
| Issuance of common shares, net of issuance costs | 992 | 4,693 |
| Borrowings under long-term debt | -- | 6,275 |
| Repayment of long-term debt | (30,000) | -- |
| Loan arrangement fees | (746) | -- |
| Payments to non-controlling interest | -- | (156) |
| Cash flow provided by financing activities | (29,754) | 10,812 |
| Investing Activities | ||
| Increase in restricted cash | 22,036 | 6,533 |
| Purchase of property, plant and equipment | (45,229) | (36,470) |
| Acquisition of increased stake in Apico LLC | (9,250) | -- |
| Deposits and other assets | -- | (43) |
| Cash flow used in investing activities | (32,443) | (29,980) |
| Effect of exchange rate changes on cash | (775) | (241) |
| Increase in cash | 17,905 | 12,028 |
| Cash - Beginning of period | 22,995 | 3,884 |
| Cash - End of Period | 40,900 | 15,912 |
| The accompanying notes are an integral part of these condensed interim consolidated financial statements (unaudited). | ||
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.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062