Coastal Energy - what am I missing?

In the light of that result FirstEnergy have raised their gross resource estimate on the Bua Ban North B Miocene to 24.3mmboe gross with a per share unrisked value of 255p/share. That takes core, risked, NAV to a total of 663p for producing and undeveloped assets plus 314p/share of risked explo upside (1,686p unrisked).

Anyone know when/where the AGM takes place?

T

Hi Tournesol,

Last year it was the 22nd July in London:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10546312

I know you might have already seen that but if not then perhaps it will be useful as a guide. With the main market Canadian listing coming, they may move it over there this year I suppose!

Regards,
JS123

Thanks JS - I've e-mailed the company for clarificaion and will share any info that returns.

In reply to tournesol, post #20

Re listing, Coastal RNS: Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO) announces that the Toronto Stock Exchange (TSX) has conditionally approved the listing of the Company's common shares. The Company's shares will begin trading on the TSX on or about July 5, 2011 under the ticker symbol "CEN". The Company's shares will be delisted from the TSX Venture Exchange simultaneously with the TSX listing. The Company's shares will continue trading on the London AIM market under the ticker symbol "CEO".

http://www.investegate.co.uk/article.aspx?id=201106210730017813I&fe=1

Also 1st quarter results look good:

First Quarter 2011 Highlights

-       Total Company production averaged 10,125 boepd in the first quarter, up from 7,578 boepd in the fourth quarter of 2010, a 34% increase.  Offshore production was impacted by downtime for workover operations on several wells. 

-       EBITDAX for Q111 was $40.1 million, 13% above the same period in 2010.

-       The Company began its exploration program with a discovery at Bua Ban North A.  The Bua Ban North A-01 well encountered pay zones in the Miocene and Upper Oligocene intervals. 

-       Subsequent to quarter-end, two further successful exploration wells were drilled at Bua Ban North A and six successful exploration wells were drilled at Bua Ban North B.  The Company plans to begin testing these discoveries in July.

Randy Bartley, President and CEO of Coastal Energy, commented:

"I'm pleased to report that the first quarter of 2011 brought further success for the Company.  Production and cash flow both increased from the previous quarter.  We expect to see material production gains offshore as Bua Ban North B & A are tied in beginning in July. 

 http://www.investegate.co.uk/article.aspx?id=201106210730017823I&fe=1

In reply to alano20, post #21

Alan020

my question is simply about the AGM - those RNS extracts don't say anything about the AGM as far as I can see.....

Slightly soggy reaction to the figs. The market was expecting higher bopd so that was a miss. Then again, with so much activity and thinking on their feet (changing drill/test programms to reflect news) its understandable.

Just need the MOPU (shame its not bigger) and those flow rates to prove commerciality.

FWIW I see this situation as providing a terrific opportunity.

IMHO Coastal's SP is solidly underpinned by its existing production and booked reserves.

In for free is low risk growth in reserves and production in the short, medium and long term arising from recent discoveries which have yet to mature into booked/developed reserves. Also in for free is the potential for additional discoveries - which on recent performance appear almost a certainty.

Its fiscal environment is benign. Political risk is relatively low. Management seems competent and very much aware of the investor perspective. I think the communication of information is world class.

Assets are very concentrated so that the company makes an attractive package for acquisition.

What's not to like?

My expectation is for a return of at least 100% over the next 2 years and possibly much more over a shorter timescale. This is my kind of investment and I'm thinking about increasing my holding.

--------------------------------------------------

absolutely no advice implicit in the above - I've been wrong many times before and my crystal ball is in for a service.

T

In reply to tournesol, post #24

T

Agree with you there.

One of several such companies IMO - CZE, PXT and GTE spring to mind. Okay, Columbia may be seen by some as higher political risk but Id rate it on a par with, or slightly below, Thailand with its history of coups.

D

Let the good times roll. :0)

...Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"The results of the B-07 and B-08 wells serve as further confirmation of the Miocene trend in the Songkhla basin.  Updated mapping based on drilling results indicates that the structural closure at Bua Ban North B is approximately 2,800 acres in size.  The positive appraisal of the eastern fault block has major implications for the extension of this field as it has significantly increased the prospectivity along the major eastern Miocene fault which extends over three kilometers between Bua Ban North A & B.

 

"The drilling rig is going to mobilize to the Songkhla H prospect next, which is a commitment well outside of the two established production areas on G5/43.  We will proceed with the installation of the mobile offshore production unit to begin production at Bua Ban North B once the rig is off location."

Busy times for Coastal.

Mark

DTX, GSY, TAO also have similar types of prospects IMO.

I think someone should start a Canadian junior oil thread ... :-)

In reply to Mattybuoy, post #27

DTX, GSY, TAO also have similar types of prospects IMO.

I think someone should start a Canadian junior oil thread ... :-)

Sounds like a capital idea. Why hasnt anyone done one already? ;-)

Anyway Matty, it seems like its just you, me and Mark that are interested. Why, i dont understand.

To keep "On Topic", i see that First Energy have raised their target for CEO to £10.90 from £9.10, a 60% discount to target vs 35% for their coverage overall.

A "new ideas" thread for Canadian juniors has now been added here -

http://www.stockopedia.co.uk/content/canadian-junior-oil-thread-new-ideas-and-general-comment-57768/

Add me to the interested list - my Coastal position is now medium sized, having started the year as small.

The AGM is on July 21st - I will be going - anyone else?

db

In reply to doverbeach, post #30

I'll be making every effort to attend the AGM

In reply to doverbeach, post #30

my Coastal position is now medium sized, having started the year as small.

Likewise! I am planning to attend too. Will have to have a close look at the proposed stock options. :~/

RNS out re some director dealing. Two buys and 1 exercise of options.

In reply to marben100, post #32

One small thing I wasn't aware of, regarding AGM attendance & voting: if you've bought shares in uncertificated form on AIM, they're actually DIs (Depositary Interests) and Capita hold the shares that the DIs represent. That's because Coastal's shares can't be held in CREST directly (this is set out in Coastal's admission document). So, formally you'd need an LoR (letter of representation) from Capita (even if you hold your DIs in a personal CREST account). Similiarly, if you hold  "shares" purchased on AIM in a broker nominee account, your broker would have to get an LoR from Capita.

I've asked FirstEnergy about this (as Coastal don't have a direct UK contact) and they believe that Coastal will probably deliver a presentation at the AGM. They're also checking for me whether shareholders holding DIs will be admitted. One thing's for sure: you won't be able to vote without an LoR or properly completed proxy form. For some AIM-purchased "shares" I hold in a personal CREST, I did receive a proxy form for instructing Capita how to vote the shares that my DIs represent (which I how I was alerted to this complication!).

Regards,

Mark

I'll just sign in as a guest as I did last time...

More good news at Bua Ban North released by Coastal Energy (LON:CEO) a moment ago:

HOUSTON, TX -- (Marketwire) -- September 6, 2011 -- Coastal Energy Company (the "Company" or "Coastal") (TSX: CEN) (AIM: CEO) announces the successful results of the Bua Ban North A-05 well and provides an operations update.

The Bua Ban North A-05 well was drilled to a total depth of 5,650 feet TVD. The well encountered 81 feet of gross sand and 35 feet of net pay in the Miocene reservoir with 27 percent average porosity. The well tested the Miocene reservoir on the eastern flank of the Bua Ban North A field. The oil water contact in the well was seen at 3,770 feet. The results of the A-05 well add an additional 1,200 acres to the structural closure area. The Company is planning to drill five to six additional evaluation wells at Bua Ban North before moving the rig to G5/50.

The Bua Ban North B-02, B-03 and B-04 wells have all been completed and tied into the production facilities. The aggregate production rate from Bua Ban North B is approximately 8,200 bopd. Average production at Songkhla A is approximately 4,000 bopd, with production currently being constrained due to a temperature issue. The Company is installing additional cooling units to remedy this issue and restore production to 6,500 bopd. The installation is expected to be complete in approximately two weeks.

Aggregate offshore oil production is averaging 13,700 bopd, and total Company production is averaging 15,800 boepd.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"We are very pleased with the results of the Bua Ban North A-05 well. This well was drilled as far north as possible to test the presence of hydrocarbons between Bua Ban North A & B. We have several locations identified which are further south and up to 200 feet structurally higher which we plan to test with the upcoming wells.

"Total production from Bua Ban North B has come in above our expectations and the wells continue to perform better than expected. We are working to resolve mechanical production issues at Songkhla and expect to restore production to previous levels in the coming weeks.

"We expect production facilities to be on location at Bua Ban North A in late October."

No wonder Randy Bartley said at the AGM that "shareholders would like this year."  :o)

SM