Coastal Energy Co.

Coastal Energy Co.

April 21, 2008 11:07 ET

Coastal Energy Announces Reserves Upgrade

LONDON, UNITED KINGDOM--(Marketwire - April 21, 2008) -


Coastal Energy Company (the "Company" or "Coastal") (TSX VENTURE:CEN)(AIM:CEO), an independent exploration and production company with assets in South-East Asia, announces a significant upgrade to the Company's reserve and resource base in Thailand.

The Company's 2007 Competent Persons Report (the "Report") reserves evaluation conducted by Huddleston and Co., Inc., has been completed in accordance with the TSX-V NI 51-101 regulations and the AIM Guidance Notes for Mining, Oil & Gas companies.

Highlights of the Report as at December 31, 2007 include:

- A 28% increase in total proven (1P) reserves to 19.0 mmboe

- A 50% increase in offshore proven + probable (2P) reserves to 26.7 mmboe

- A 76% increase in total contingent resources (best estimate) to 34.2 mmboe

- A 137% increase in total prospective resources (best estimate) to 170.4 mmboe

The upgrade of reserves is driven primarily by additional reservoir engineering and sub-surface technical work which utilized data extracted from a 375 square kilometer high resolution 3-D seismic survey acquired in early 2007 over the western portion of the offshore G5/43 Block in the Gulf of Thailand. Evaluation and integration of the 3D data has enabled the Company to complete detailed reservoir modeling studies over the Bua Ban field and in addition, confirm additional reserves and resources along the western portion of the Songkhla basin.

Randy Bartley, Chief Executive Officer of Coastal commented: "Our technical team is making significant progress in evaluating our current development projects at the Songkhla and Bua Ban oil fields. They have been successful at identifying 8 additional prospective developments that can be drilled from our Songkhla facility development or from a satellite wellhead facility and processed at the main Songkhla facility. The Songkhla facility is expected to be set late Q3 2008. These 8 prospects will expose the Company to an additional 200 MM barrels of potential oil in place, that with success, can be developed and brought on production in late Q4 2008 and Q1 2009."

The following tables provide a consolidated look at Coastal's reserves and resources as of December 31, 2007:

Reserves in mmboe
(million barrels of oil equivalent) Onshore Offshore Total
Proven (1P) 10.7 8.3 19.0

Proven + Probable (2P) 18.8 26.7 45.5

Proven + Probable + Possible (3P) 18.8 34.8 53.6
Note - Reserves are stated at gross working interest before royalties
as defined in the Report

Resources in mmboe
(million barrels of oil equivalent) Onshore Offshore Total
Contingent Resources
Low Estimate 6.0 3.5 9.5
Best Estimate 26.1 8.1 34.2
High Estimate 180.9 18.5 199.4

Prospective Resources
Low Estimate 44.9 28.4 73.3
Best Estimate 72.7 97.7 170.4
High Estimate 116.7 307.0 423.7
Note - Resources are stated at gross working interest before royalties
as defined in the Report and are in addition to the 3P Reserves
reported in the above table.

The Company's 2007 annual consolidated financial statements are expected to be released on April 29, 2008.

Randy Bartley, President and Chief Executive Officer of the Company and a member of the Society of Petroleum Engineering, and Frank Inouye, Chairman of the Company and a member of the American Association of Petroleum Geologists, have reviewed the contents of this announcement.

Notes to Editors

- Coastal Energy is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand.

- The Company specializes in identifying and developing under-exploited or "orphaned" 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 11.5 mmcf/d of gas under a 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 53.6 million barrels oil equivalents

- The Company's current assets include:

- Offshore Thailand

-- 100% of block G5/43 - two oil fields currently under development with several other appraisal and exploration opportunities. Production is expected to commence Q4 2008

-- 100% of block G5/50 - within the boundaries of block G5/43 in the Ko Kra basin

- Onshore Thailand

-- 12.6% net interest in blocks EU1 and E5N which include the Phu Horm gas field currently producing between 90 and 100 mmcf/d

-- 36.1% net interest in block L15/43 surrounding the Phu Horm field

-- 36.1% net interest in block L27/43 - containing the undeveloped Dong Mun gas field

-- 21.7% net interest in block L13/48 located adjacent to blocks L15/43 and L27/43, contains Si That discovery

For additional information, including the Company's complete competent person's may be found on the Company's website, or may be found in documents filed on SEDAR,

Huddleston & Co., Inc., based in Houston, Texas, was founded in 1967 by B. P. Huddleston. The firm has developed into a premier provider of petroleum and geological engineering, consulting, and financial services. Huddleston & Co., Inc., has forged a solid reputation for consistently delivering a high quality work product as well as for utilizing the latest technological advancements to complete projects in a timely and cost effective manner. Additional information may be found at

Reserve definitions are in accordance with the Society of Petroleum Engineers and the World Petroleum Congress "Oil and Gas Reserve Definitions."

Per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6mcf: 1bbl of oil is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.

The TSX Venture Exchange does not accept responsibility For the adequacy or accuracy of this release

Contact Information

  • Coastal Energy Company
    Frank Inouye
    +44 (0) 1483 549 549
    Coastal Energy Company
    Randy L. Bartley
    Chief Executive Officer
    (713) 877-6705
    Coastal Energy Company
    William C. Phelps
    Chief Financial Officer
    (713) 877-6727
    Bell Pottinger Corporate & Financial
    Ann-Marie Wilkinson / Nick Lambert / Rosanne Perry
    +44 (0) 20 7861 3232
    KBC Peel Hunt Ltd (Nominated Adviser)
    Jonathan Marren / Matt Goode
    +44 (0) 20 7418 8900