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Oil and gas explorer and producer Coastal Energy Company (LSE:CEO) (TSX:CEN) said today its offshore proven reserves have increased by 30% to 81 million barrels of oil (mmbbl) while offshore probable reserves increased by 26% to 87.9 mmbbl.
The latest report, prepared by RPS Energy Ltd., brings the total company proven reserves to 87.9 mmboe, while proved and probable reserves are now at 149.1 mmboe, an increase of 26% and 45%, respectively.
Shares of Coastal Energy rose 4.3% to £9.70 a share at 1:30 PM GMT, reaching as high as £9.87 in early morning trading, following the news.
Coastal Energy assets are in Thailand, where it has 100% interest in two blocks in the Gulf of Thailand encompassing over 5,000 square kilometres and interests in multiple onshore blocks through its 36.1% ownership of privately-held Apico, LLC.
The increase in reserves, according to Coastal Energy, was due to the revision of water level saturation at the Bua Ban North field from 40% to 25%, thereby increasing the stock tank oil originally in place (STOOIP) figures and the oil discovery in the Bua Ban south prospect, which proved to be commercial.
The company had a total production from its offshore assets of 22,500 bopd, as reported in its first quarter results back on 15th May 2012.
It anticipates higher production in the coming months as water injections are now in place to three of its wells in the Bua Ban North, expected to start in the next 30 days.
Surprise to the Upside
“We are extremely pleased with the results of the interim reserves evaluation by RPS. Bua Ban North continues to surprise to the upside,” said Randy Bartley, President and Chief Executive of Coastal Energy.
Proved reserves at the Bua Ban North are now at 72 mmbbl, 29% higher than the previous estimate of 54.9 mmbbl, which was also prepared by RPS on 17th November 2011.
Coastal Energy is also to commence spudding of another prospect in the Bua Ban North field by next week, after completion of regulatory inspection of the rig to be used.
Company Spotlight
Coastal Energy Company is a Cayman Islands-incorporated oil and gas exploration and production company with principal assets in Thailand. The company has dual listing on the Toronto Stock Exchange and the Alternative Investment Market of the London Stock Exchange.
