Coastal Energy Company 2013 Guidance (9764R)
26 Novembre 2012 - 2:30PM
UK Regulatory
TIDMCEO
RNS Number : 9764R
Coastal Energy Company
26 November 2012
TSX: CEN November 26, 2012
AIM: CEO
Coastal Energy Announces Guidance for 2013
Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:
CEN, AIM: CEO), an independent exploration and production company
with assets in Thailand, today announced the following guidance for
2013:
Ø The Company expects total company production to average 33,000
boepd (net to Coastal) for the full year. This estimate includes
27,000 bopd from offshore Thailand, 2,300 boepd onshore Thailand
and net production from Malaysia averaging 3,700 bopd (Production
expected to begin in early Q3).
Ø The Company expects operating expenses to average
approximately $19.00 per bbl offshore Thailand, well below 2012
levels as the Company realizes a full year of facilities purchases
for its Thailand operations.
Ø Total capital expenditures are expected to be approximately
$315MM, down from the estimated $360MM in 2012. 2012 capital
expenditures were largely driven by substantial facilities
purchases which will be significantly lower in 2013. The reduction
in facilities expenditures is offset largely by the doubling of
drilling capex as the Company adds a second drilling rig for the
full year. The Company is also expecting to incur higher than
average capex onshore in Thailand due to the beginning of pipeline
construction and the development drilling at the Dong Mun field.
The breakdown of the Company's capex budget is $200MM offshore
Thailand, $40MM onshore Thailand and $75MM Malaysia.
Randy Bartley, President & CEO of Coastal Energy
commented:
"As our guidance demonstrates, we expect a strong 2013. Our
business is performing well and, given our highly prospective
inventory, significant asset base, exploration success and growing
oil production profile, we are well positioned to continue
delivering value to our shareholders.
"We continue to be pleased with our operational results. The
first hydraulic fracturing program at Bua Ban South is underway and
initial results are encouraging. If successful, this would be a
viable solution to unlocking the millions of barrels in lower
porosity and permeability sands in the Songkhla basin. We expect to
provide a comprehensive update on this program prior to year
end."
"Coastal is anticipating a busy 2013 as we put a second drilling
rig to work in Thailand. This will allow us to use one rig for
development drilling and increasing production while simultaneously
drilling several of the high-impact exploration prospects in our
portfolio. We will also be working to bring our first oil online in
Malaysia and will be moving toward producing our first gas from the
Dong Mun field onshore Thailand. We expect to fund our capex budget
entirely out of cash flow."
The Songkhla A-19 water injector has been drilled and
encountered 292 feet of 17% porosity Lower Oligocene sand and will
make an excellent injector for the south east block (A-10 &
A-12) wells. The well also encountered 100 feet of high quality
Miocene M100 sand with 20 to 35% oil saturation. Although, the
Miocene here would not be commercially productive, it shows oil
migration through the Miocene in the Songkhla area. The recently
shot 3-D seismic program should help detect structural closures
once processed and interpreted in Q113.
The Company also disclosed that it had been in discussions with
Pertamina about a potential transaction, but those discussions have
ended.
Said Mr. Bartley, "We are always evaluating our strategic
alternatives, and we will continue to do so, but we will not
undertake any transaction unless we believe it will deliver more
value than our highly successful current strategy of organic
growth."
Additional information, including the Company's complete
competent person's report may be found on the Company's website at
www.CoastalEnergy.com or 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.
Enquiries:
Coastal Energy Company
Email: investor@CoastalEnergy.com +1 (713) 877-6793
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
3494
Rory Murphy / Scott McGregor
Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037
2000
Paul Connolly / Jeffrey Auld
FirstEnergy Capital LLP(Broker)
Hugh Sanderson / Travis Inlow +44 (0) 20 7448 0200
Buchanan
Tim Thompson / Ben Romney +44 (0) 20 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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