Coastal Energy Company Announce Reserves Upgrade
Coastal Energy Company, an independent exploration and production company with core assets in South-East Asia, announces that Huddleston and Co. Inc. has completed its 2006 Competent Persons Report (the "Report”) reserves evaluation in accordance with the TSX-V NI 51-101 regulations and the AIM Guidance Notes for Mining, Oil & Gas companies.
The Report highlights the following as at January 1, 2007:
- a 42% increase from January 1, 2006 in Coastal's Proven, Probable ("2P") reserves to 36.7 mmboe;
- a 55% increase from January 1, 2006 in Coastal's Proven, Probable and Possible ("3P") reserves to 45.3 mmboe; and
- Contingent resources of 177.1 mmboe net to Coastal (based on the high estimate).
In addition, the Company's overall gross 2P reserve estimate for the Phu Horm gas field has increased 72% from January 1, 2006 to 872 bcf.
The upgrade of reserves is based on additional technical information, including inter alia production data from the Phu Horm field and extensive reservoir simulations completed for the offshore fields which are currently under development. Reserve definitions are in accordance with the Society of Petroleum Engineers and the World Petroleum Congress "Oil and Gas Reserved Definitions”.
Frank Inouye, Chief Executive Officer of Coastal Energy commented: “Over the past six months we have focused our efforts on commercialising the Company"s onshore and offshore assets in Thailand and I am pleased to say our efforts have been reflected in the reserves upgrades. The Company's near term objective is concentrated on appraising and developing these assets in order to provide the cash flow that will enable us to identify and secure additional 'orphaned" opportunities.”
