Coastal Energy Announces Third Quarter 2009 Financial Results
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE
AIM: CEO
TSX-V: CEN
Third Quarter Highlights
- EBITDAX of $6.8 million and $25.3 million for the three and nine
months ended September 30, 2009.
- Resumption of the drilling campaign on the Company's Songkhla Field
in the Gulf of Thailand.
- Commencement of a 2-D seismic acquisition survey on the Company's
northern acreage in Blocks G5/43 and G5/50.
- Crude Oil Sales of $21.2 million and $57.4 million for the three and
nine months ended September 30, 2009.
- Net Loss of $0.1 million and $2.1 million for the three and nine
months ended September 30, 2009.
"The third quarter of 2009 marked another significant milestone for Coastal Energy as the Company resumed development of its Songkhla field in the Gulf of
"We have secured an extension to the current drilling contract to keep the rig working through the first half of 2010. Once the development program at Songkhla Main is complete, we will move to the Songkhla B exploration prospect. Following drilling at Songkhla B, we plan to begin development of the Benjarong and Bua Ban fields.
"Coastal Energy is entering an exciting period and we are optimistic about our offshore development program and the potential value it could add to the Company. We expect the remainder of the fourth quarter and 2010 to bring further progress in the development of our offshore assets and further success for Coastal."
Note: EBITDAX is a non-GAAP measure and is defined as earnings before
interest, financing fees, taxes, depreciation, amortization, exploration
costs and other one-time items adjusted for non-cash items such as
unrealized gains and losses on risk management contracts, unrealized
foreign exchange gains or losses and stock-based compensation.
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.
The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three and nine months ended
Three months ended Nine months ended
September 30, September 30,
(US$ 000s) 2009 2008 2009 2008
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(As restated
Note 2)
Revenues
Crude oil $21,205 - $57,422 -
Royalties (1,430) - (3,851) -
(Loss) gain on derivative 128 13 (1,795) 32
Gain (loss) on sale of assets - 122 - 122
Interest income 6 316 22 831
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19,909 451 51,798 985
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Expenses
Production $10,936 - $23,788 -
General and administrative 5,029 3,053 11,432 8,709
Foreign exchange (gain) loss 240 1,440 1,637 3,049
Interest 796 642 3,162 1,302
Debt financing fees 323 - 1,249 2
Depletion, depreciation
and accretion 5,382 42 16,238 130
Settlement - - 2,366 -
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22,706 5,177 59,872 13,192
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Net income (loss) before
taxes and earnings from
significantly influenced
investee and non-controlling
interest (2,797) (4,726) (8,074) (12,207)
Income tax expense - - - 666
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Net income (loss) from before
earnings from significantly
influenced investee and
non-controlling interest (2,797) (4,726) (8,074) (12,873)
Earnings from
significantly influenced
investee 2,621 4,250 5,886 10,725
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Net income (loss) before
non-controlling interest (176) (476) (2,188) (2,148)
Non-controlling interest 65 - 65 -
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Net income (loss) and
comprehensive loss
attributable to
shareholders (111) (476) (2,123) (2,148)
EBITDAX(a) 6,820 1,680 25,345 6,189
Deficit, beginning
of period (18,599) (15,698) (16,587) (14,026)
Deficit, end of period (18,710) (16,174) (18,710) (16,174)
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Earnings (loss) per share
Basic and diluted (0.00) (0.00) (0.02) (0.02)
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Weighted average number
of common shares
outstanding 99,380,720 93,630,722 96,208,559 93,138,478
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Note (a) EBITDAX is a non-GAAP measure and is defined as earnings before
interest, financing fees, taxes, depreciation, amortization, exploration
costs and other one-time items adjusted for non-cash items such as
unrealized gains and losses on risk management contracts, unrealized
foreign exchange gains or losses and stock-based compensation.
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September December
30, 31,
(US$ 000s) 2009 2008
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Assets
Current Assets
Cash and cash equivalents $20,196 $6,434
Restricted cash 3,825 4,146
Accounts receivable 3,489 2,391
Derivative risk management contract 348 2,016
Crude oil inventory 4,290 308
Prepaids and other current assets 675 271
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32,823 15,566
Investments in and advances to Apico, LLC 56,262 50,376
Property, plant and equipment, net 206,681 192,224
Deposits and other assets 383 297
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$296,149 $258,463
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Liabilities
Current liabilities
Accounts payable and accrued liabilities $27,591 $35,536
Deferred Income 28,502 -
Income taxes payable - 1,252
Amounts due to shareholder 6,011 6,761
Notes payable 8,642 -
Current portion of long-term debt 8,888 15,249
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79,634 58,798
Long-term debt 26,525 28,751
Asset retirement obligations 1,813 1,354
Future income tax liability 26,851 25,984
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134,823 114,887
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Non-controlling interest 2,570 -
Shareholders' equity
Share capital 162,307 146,938
Contributed surplus 14,865 13,225
Warrants 294 -
Retained deficit (18,710) (16,587)
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158,756 143,576
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$296,149 $258,463
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Three months ended Nine months ended
September 30, September 30,
(US$ 000s) 2009 2008 2009 2008
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(As restated
Note 2)
Operating Activities
Net income (loss) for
the period $(111) (476) $(2,123) (2,148)
Distributions from
significantly
influenced investee 2,710 3,612 4,516 8,851
Items not involving cash
Depletion,
depreciation and
accretion 5,382 42 16,238 130
Impairment - - 1,765 -
Interest expense - 211 - 428
Non-controlling
interest (65) - (65) -
Unrealized foreign
exchange (gain)
loss 165 646 867 792
Stock based
compensation 2,809 442 4,955 1,704
Issuance of warrants
with notes payable - - 294 -
Share of earnings
of significantly
influenced investee,
net of taxes (2,621) (4,250) (5,886) (10,725)
Unrealized (gain)
loss on risk
management contract (128) (13) 1,668 (32)
(Gain) loss on
sale of assets - (122) - (122)
Change in non-cash
working capital
Accounts receivable (1,262) (288) (1,098) (964)
Crude oil inventory 243 - (3,982) -
Prepaids and other
current assets 145 - (404) -
Accounts payable
and accrued liabilities (232) (143) 3,867 234
Deferred Income 22,706 - 28,502 -
Income Taxes Payable - (1,232) (1,252) (566)
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29,741 (1,571) 47,862 (2,418)
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Investing Activities
Investment in and
advances to Apico LLC - - (4,516) (903)
Decrease (increase) in
restricted cash (349) (2,774) 321 (2,261)
Purchase of property,
plant and equipment (12,631) (20,212) (45,979) (54,694)
Proceeds from disposal
of property, plant
and equipment - 540 - 540
Proceeds from non-
controlling interest 2,635 - 2,635 -
Other - (239) (86) (238)
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(10,345) (22,685) (47,625) (57,556)
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Financing Activities
Issuance of shares
for cash (49) - 15,369 54,875
Borrowings under
long-term debt - 20,000 1,620 45,000
Repayments of
long-term debt (2,371) - (10,207) (25,000)
Borrowings under
amounts due to
shareholder - (411) 1,000 (411)
Repayment of amounts
due to shareholder (1,157) - (2,278) -
Proceeds from issuance
of notes payable - - 15,000 -
Repayments of notes
payable (2,949) - (7,021) -
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(6,526) 19,589 13,483 74,464
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Net effect of foreign
exchange on cash held in
foreign currencies 27 (1,895) 42 (1,846)
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Change in cash and
cash equivalents 12,897 (6,562) 13,762 12,644
Cash and cash equivalents,
beginning of period 7,299 32,355 6,434 13,149
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Cash and cash equivalents,
end of period 20,196 25,793 20,196 25,793
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Cash and cash equivalents
consists of:
Cash 20,196 11,094 20,196 11,094
Short-term money market
instruments - 14,699 - 14,699
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20,196 25,793 20,196 25,793
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These securities have not been registered under
The TSX Venture Exchange does not accept responsibilityfor the adequacy
or accuracy of this release
For further information: Enquiries: Coastal Energy Company, Randy L. Bartley, Chief Executive Officer, (713) 877-6705; William C. Phelps, Chief Financial Officer, (713) 877-6727; Email: [email protected]; Strand Hanson Limited (Nominated Adviser), Rory Murphy, Paul Cocker, +44 (0) 20 7409 3494; Thomas Weisel Partners (Broker), Paul Colucci, +44 (0) 20 7877 4300; Macquarie Capital (Europe) Limited (Broker), Ben Colegrave, Paul Connolly, +44 (0) 20 3037 2000; Buchanan Communications, Tim Thompson, Catherine Breen, Katharine Sutton, +44 (0) 20 7466 5000
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