Coastal Energy Co.

Coastal Energy Co.

September 10, 2008 09:30 ET

Coastal Energy Provides Operations Update

LONDON, UNITED KINGDOM--(Marketwire - Sept. 10, 2008) -


Coastal Energy Company ("the Company") (TSX VENTURE:CEN)(AIM:CEO), an independent exploration and production company with assets in Southeast Asia, announces an update on its operations offshore Thailand.

The Company's wholly owned subsidiary, NuCoastal (Thailand) Limited, has finalized its previously announced contract with Deep Drilling 7 Pte. Ltd. for a charter of the "Deep Driller 7". The contract is for an initial term of three months and is extendable up to an additional three months. The rig is expected to begin mobilizing to the Songkhla location in mid-September 2008.

Randy Bartley, Chief Executive Officer of Coastal Energy commented: "The Company has government approval for extended production testing while drilling at our Songkhla field development. We expect to be drilling by late September, with completion and testing of the first Songkhla well by mid-October. We will continue to test and produce our first well to test facilities while continuing simultaneous drilling operations. This early extended testing and production will allow the Company to establish production and cash flow from offshore properties ahead of final Environmental Impact Assessment approval and platform and facilities installation."

Notes to Editors

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

- The Company specialises 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 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 45.5 million barrels oil equivalent(i)

- 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, which was producing in excess of 100 mmcf/d at the end of the second quarter 2008.

--- 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

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,

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.

(i) 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 to 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
    Nick Lambert / Rosanne Perry
    +44 (0) 20 7861 3232
    KBC Peel Hunt Ltd (Nominated Adviser)
    Jonathan Marren / Matt Goode
    +44 (0) 20 7418 8900