US-based Coastal Energy to Place Second Offshore Thailand Rig
Coastal Energy Company, an independent exploration and production company with assets in Thailand, issues 2013 guidance.
• 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.
• 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).
• 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."