Corporate Presentation - Investis CMSfiles.investis.com/coastal/media/presentation/2007-12-17.pdf · Corporate Presentation December, ... 1-Audit Committee Member 2-Compensation Committee

1Copyright Coastal Energy Company 2007 | All Rights ReservedCorporate Presentation December, 2007

Corporate Presentation

December, 2007


Forward Looking Statements

This presentation 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. This presentation does not contain all of the information

contained in the preliminary prospectus of Coastal Energy Company,

which should reviewed for complete information.


� The Company

� Overview

� Strategy and Objectives

� Management Team and Board of Directors

� Asset Overview:

� Onshore Thailand

� Offshore Gulf of Thailand

� Investor Information

� Reserve Base

� Forecasted Production Profile

� 2008 Drilling Programme

� Net Reserve Value

� Corporate Information

� Conclusions

Presentation Outline


The Company – Overview

� International Oil and Gas Company with principle assets in Thailand

� Established Reserve and Production Base � Proven (1P) Reserves: 14.8 mmboe*� Proven plus Probable (2P) Reserves: 36.7 mmboe*� Proven plus Probable plus Possible (3P) Reserves: 45.3 mmboe*� Net gas production from Phu Horm: 10 - 13 mmcfd

� Balanced portfolio of production, development and exploration assets:� Onshore Thailand – Gas production with appraisal and exploration upside� Offshore Thailand – Oil field developments with appraisal and exploration upside

Notes: * Gas Conversion 6mcf/boe


� Establish early production and cash flow from existing assets

� Prove up additional reserves within current portfolio

� Identify “orphaned” opportunities for acquisition or joint venture

� Geographic focus and strategy

� Primary focus – Thailand and Southeast Asia

� Secondary focus – Countries with developing economies and favourable operating regimes

The Company - Strategy and Objectives


� Executive Management – successful team of seasoned professionals

� Major shareholder

– Al WhiteheadChairman

− Frank InouyeChief Executive Officer

− William PhelpsChief Financial Officer

• 50 years of industry experience

• Officer and Director of a number of successful companies including Bridger Petroleum, Seven Seas, Bonanza Oil and Gas, Cimarron Petroleum

• 27 years of international oil/gas experience

• Previously Head of Corporate Development– Premier Oil plc.

• Founding Director of Deltaic Energy Limited

• Previously CFO of NuCoastal Corporation

• 10 years capital markets experience (formerly Citigroup Energy Investment Banking)

• Assisted in capital raisings in excess of $10 billion

– Oscar S. Wyatt, Jr.

• Founder, former CEO and Chairman of the Coastal Corporation

• Founded Coastal in 1955 and built it into a $20 billion company

• Assets included 18,000 miles of pipeline, four world class refineries, and significant exploration and production properties

The Company - Management Team


– John J. Murphy 3,4

Non-Executive Director

– L. Barney Smith 2


– Forrest E. Wylie 1,3,4


– John Zaozirny 1


– C. Robert Black 1,4


– Bernard de Combret 2,3


– Olivier de Montal 2


• Former Chairman & CEO of Dresser Industries Inc.• Negotiated the acquisitions of Wheatly TXT, Baroid Corp, M-1 Drilling Fluid, Western Atlas Intl., & M.W. Kellogg

• At Mr. Murphy’s retirement, Dresser had 31,000 employees in 50 countries

• Former H.M. Ambassador to Thailand

• Former H.M. Ambassador to Nepal

• Previously Head of South Asia Dept. Foreign and Commonwealth Office

• Chairman, CEO & President Buckeye Partners, L.P.

• Former Vice Chairman of Pacific Energy Partners, L.P.

• Former President and CFO of NuCoastal Corporation

• Counsel to law firm McCarthy Tetrault LLP

• Vice-Chairman Canaccord Capital Corporation

• Previous Minister for Energy and Natural Resources, Province of Alberta

• Former President of Worldwide Exploration and Production for Texaco

• Served on Texaco’s Executive Council for strategy

• 41 years with Texaco

• Former deputy chairman of TotalFinaElf’s executive committee and heavily involved in building the trading organization

• Former CEO of refining & marketing division, CEO for gas and power and CEO for trading and shipping

• 24 years with Elf and subsequently Total

• Administrator of Olympia Capital Holding, ODM Finance and advisor to the LVMH Group

• CEO of ODM Development.

The Company – Board of Directors

1-Audit Committee Member 2-Compensation Committee Member 3-Corporate Governance Committee Member 4 Executive Committee Member


� Onshore Thailand – Balanced Risk Portfolio:

� Asset interest held via APICO LLC (Coastal is APICO’s largest shareholder

with 36.1% interest)

� 12.6% working interest in blocks EU1 and E5N which includes the Phu Horm

gas field currently producing in excess of 100 mmcfd

� 36.1% interest in block L15/43 – surrounds the Phu Horm field and contains

the southern extent of the gas field

� 36.1% interest in block L27/43 – contains the undeveloped Dong Mun gas

field

� 21.7% interest in block L13/48 located adjacent to blocks L15/43 and L27/43

– contains Si That discovery

� Offshore Thailand - 100% of block G5/43:

� Development of two previously discovered oil fields

� Appraisal of two additional oil fields

� Untested exploration potential in Songkhla Basin as well as three other

under-explored Tertiary Basins within the block

Asset Overview


� EU1/E5N – Contains the Phu Horm Gas Field

� Production commenced November, 2006 at 60mmcf/d

increasing to 100mmcf/d in 2007 (CEO net 12.6% interest)

� Net Production of approximately 2000 boepd

� 62 km. 16 inch mixed phase pipeline connects field to Nam

Phong GPP

� L15/43 – Acreage Surrounding Phu Horm Field

� Contains possible southern extension of field (CEO net 36.1%

interest)

� Drilling to commence in Q4, 2007

� L27/43 – Contains the Dong Mun undeveloped gas

field and several un-drilled prospects

� L13/48 – Contains Si That discoveries

Asset Overview – Onshore Thailand


� Phu Horm Gas Field:

� GSA signed in July 2005

� Gas purchased by PTT Public Co.

� First gas commenced in Q4 2006

� Contracted DCQ of 108 mmcfd

� Feedstock for 750 MW power plant at Nam Phong

� Partners: Hess (35%-Operator); APICO (35%); PTT (20%);

Exxon Mobil (10%)

� Contingent gas resources of 5.4 tcf (high case)

� Block L15/43 surrounds the Phu Horm field

� First well planned for Q4 2007 to verify southern extension of

the Phu Horm field

� Confirmation of gas field extension outside the current

production license would lead to unitization discussions

Blocks EU1, E5N, L15/43

Indonesian 1 Unconformity TWT Structure

PK-1

Proposed Phu Horm South Well


10


Block L27/43

� APICO 100% (operator)

� Contains the Dong Mun gas field

� New 2-D seismic acquired in Q1 2006 over

Dong Mun field and existing prospects/leads

� 9 additional leads confirmed in the block

� Current mapping suggests estimated gas

resources in the block could be as high as 2 tcf

� Exploration well Dong Mun-3 currently drilling



Block L13/48

� APICO 60% (operator) – PEARL Oil (Thailand)

Limited 40%

� Si That – wells 1 & 2 both tested gas

� ST-2 well tested gas in excess of 17 mmcfd from

Permian Dolomites

� Current mapping suggests Si That structure could

hold possible resources in excess of 1 tcf of gas in

place

� 2-D seismic planned for late 2007


Indosinian 1 Unconformity TWT structure ci. 10 msec


Thailand – Gas Demand Forecast


In 2006, Thailand gas consumption reached almost 3 bcf/d, outstripping domestic gas production by 25%. Gas imports from Myanmar making up the difference.

Thailand – Gas Consumption vs. Domestic Supply, 1990 - 2006


� Block was explored by Premier Oil in the early 1990’s

� Premier drilled 5 wells, 4 oil discoveries in the Songkhla basin:

� • Songkhla-1 – oil discovery flowed 1,500 bopd

� • Bua Ban-1 – oil discovery flowed 768 bopd

� • Songkhla SW-1 – oil discovery

� • Benjarong-1 – oil discovery not tested (recovered oil while drilling)

� Recent appraisal drilling and newly acquired 3D seismic

confirm viability of Songkhla and Bua Ban developments

� 12 month drilling contract with Swiber Offshore Drilling to

commence in Q1, 2008

� First production from Songkhla expected Q2, 2008

� Nakhon and Ko Kra basins remain un-explored

Block G5/43

Asset Overview – Offshore Gulf of Thailand


� Songkhla Field:

� Original discovery well tested 1500 bopd from Lower

Oligocene sandstones

� Fast track development utilising re-usable platforms/facilities

� Proved & Probable reserve estimate based on 100% working

interest: is 4.5 mmbbls (Songkhla Main only)

� Additional satellite features could add 20 mmbbls.

� Reservoir simulation suggests ultimate recovery factors as

high as 30%

� Subsurface engineering work completed confirms oil-in-place

reserves of 15-20 mmbbls

Block G5/43



� Songkhla Field Development:

� Fast track low cost development

� Separate Wellhead and Processing Platforms

� Moored FSO (Floating Storage and Offload)

� FSO can also service Bua Ban development

� Initial production estimated at 4,000 – 5,000 bpd

� Facilities to include water injection for pressure support

� Downhole ESP’s (Electrical Submersible Pumps)

� Estimated cost of development: US$ 17 million excluding

drilling costs

Block G5/43



� Bua Ban Field:

� Original discovery well tested 768 bopd from Lower Oligocene

sandstones

� 3 well appraisal programme completed in August 2005

encountered Lower Oligocene reservoir with estimated net pay

ranging from 66 – 77 ft

� Confirmed oil column of 577 ft – 724 ft

� Estimated 90 – 140 mmbbls oil-in-place

� 3-D Seismic acquired in Q4 2006

� Reservoir engineering work commenced in Q2, 2007

� Finalise fast track development plan in Q4, 2007

� Proved & Probable recoverable reserve estimate based on

100% working interest: is 13.2 mmbbls

Bua Ban-1

Bua Ban-3

Bua Ban-2A

Bua Ban-2

Block G5/43



� Field Developments :

� Songkhla Field: Fast-track development with first production

expected for Q2, 2008

� Bua Ban Field: Recently acquired 3D to confirm optimum

development plan

� Earliest production from Bua Ban planned for late 2008

� Exploration/Appraisal opportunities:

� Benjarong: requires further drilling to confirm reserve base

� Songkhla SW original well recovered oil – requires further

evaluation

� Confirmed prospect inventory includes a variety of structural

and stratigraphic targets

Note: Based on Current PWC mapping estimates

Block G5/43


Enlarged area


285,347,000280,503,0004,844,000Prospective Resources

(High Case)

177,144,60018,914,000158,230,600Contingent Resources

(High Case)

45,293,00026,472,00018,821,000Proven, Probable and Possible

(3P)

36,646,00017,825,00018,821,000Proven plus Probable (2P)

14,782,0005,900,0008,820,000Proven (1P)

TOTALOffshoreOnshoreAll figures in barrels oil equivalent

Source: Extracted from the Competent Persons Report (CPR) prepared by Huddleston & Co. Inc. as at 1/1/07

Reserves are gross working interest oil reserves before royalties, as defined in the CPR

Note 1: Reserves refer to the Bua Ban and Songkhla fields only

Investor Information – Reserve Base

1


Investor Information – Forecasted Production Profile

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09

Barrels Oil Equivalent per day

Phu Horm

Songkhla

Bua Ban

Total


Investor Information – 2008 Drilling Programme


Investor Information – Net Reserve Value

GBPUSDReserve Values / Share

90,919,859£180,385,000$Proven (1P)

$59.80Constant Oil Price Case (US Dollars)

10%Discount Rate

1.984US$ / GB £

76,983,222Shares Outstanding (post 7 Nov 2007)

5.46£10.84$Proven + Probable + Possible (3P)

3.84£7.62$Proven + Probable (2P)

1.18£2.34$Proven (1P)

420,636,089£834,542,000$Proven + Probable + Possible (3P)

295,839,214£586,945,000$Proven + Probable (2P)

GBPUSDReserve Values

Before tax values as estimated by Huddleston & Co., Inc. in the Competent Persons Report dated 1/1/07


76,983,222

83,426,972

47.1%

US$7.5 million

US$34.4 million

US$8.0 million

� Total number of outstanding shares *

� Fully diluted share count *

� Percentage of outstanding shares held by significant shareholder

� Cash

� RBL Debt Facility Available

� RBL Debt Outstanding

� Trading Symbols: “CEO” on London AIM and “CEN” on TSX-V

Investor Information – Corporate Information

• All US$ amounts are as of 1 September 2007* Post 7 Nov 2007 Share 1 for 4 Consolidation


� Who We Are: A dynamic international E&P company with an established reserve base and exploration, production and development assets in Thailand

� What We Do: Focus on identifying and exploiting overlooked and undervalued ‘orphaned’ assets that have the potential to deliver significant investment returns

� Where We Operate:

� Onshore Thailand with established gas production and exploration upside

� Offshore Thailand with oil field developments and appraisal/exploration upside

Conclusions


Contact Details:

London Office: Houston Office:Coastal Energy Co. Coastal Energy Co.

1 Farnham Road 3355 West Alabama

Guildford, Surrey Suite 500

GU1 4RG UK Houston, Texas 77098

Telephone: 44 (0) 1483 549 549 Telephone: 1 713 877 6727

Fax: 44 (0) 1483 549 570 Fax: 1 713 877 7128

Website: www.coastalenergy.com


Legal DisclaimerThe information contained in this presentation (“Presentation”) has been prepared by Coastal Energy Company (“Company”) and is being delivered for informational purposes

only to a limited number of persons to assist them in deciding whether or not they have an interest in investing in the Company. The Presentation has not been independently

verified and the information contained in it is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain all

information that a prospective investor may require. While the information contained in it has been prepared in good faith, neither the Company nor its shareholders, directors,

officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability

or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its

advisers (all such information being referred to as “information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders,

directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct, express or implied, contractual, torturous, statutory or

otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained in, or for any errors, omissions or misstatements or for any loss,

howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access

to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

Information contained in this Presentation is confidential information and the property of the Company. It is made available strictly for the purposes referred to above.

The Presentation and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information may not

be reproduced, used or disclosed without the prior written consent of the Company. This Presentation must not be copied, published, reproduced or distributed in whole or in part at

any time without the prior written consent of the Company and by accepting the delivery or making to it of this Presentation, the recipient agrees not to do so and to return any

written copy of this Presentation to the Company at the request of the Company.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each

party to whom this Presentation is delivered or made must make its own independent assessment of the Company after making such investigations and taking such advice as may be

deemed necessary. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgement, analysis

and assumption and each recipient should satisfy itself in relation to such matters. Neither the delivery or making of this Presentation nor any part of its contents is to be taken as

any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective

investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company.

This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the

Company, nor shall it, or the fact of its delivery, making or distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, an contract or

commitment whatsoever with respect to such securities. Any such solicitation or offer will be made by means of a prospectus to be issued by the Company in due course and any

decision to subscribe for securities in the Company should be made solely on the basis of the information contained in such prospectus.


Legal Disclaimer (continued)The delivery, making or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons who receive this Presentation should inform

themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In particular,

this Presentation has not been approved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, it is being

communicated in the United Kingdom only to persons to whom this Presentation may be communicated without contravening the financial promotion prohibition in Section 21 of

the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and include persons who fall within the

category of person set out in Articles 19 and 49 of the Order. Any investment activity to which this Presentation relates in the United Kingdom is available to, and will only be

engaged with such persons and this Presentation should not be acted or relied upon in the United Kingdom by persons of any other description. This Presentation has not been

approved as a prospectus by the UK Financial Services Authority (“FSA”) under Section 87A of the FSMA and has not been filed with the FSA pursuant to the United Kingdom

Prospectus Rules. No offer of securities in the Company is being or will be made in the United Kingdom in circumstances which would require such a prospectus to be prepared.

The securities proposed to be issued by the Company (the "Common Shares") have not and will not be registered under the U.S. Securities Act of 1933, as amended (the

"Securities Act") and may not be offered or sold in the United States except pursuant to an exemption from, or transactions not subject to, the registration requirements of the

Securities Act. In addition, other than to a limited number of persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act),

neither this Presentation nor any copy of it may be taken or transmitted into the United States or America or distributed directly or indirectly, in the United States of America or to

any resident thereof except in compliance with the applicable U.S. securities laws. Any failure to comply with these restrictions may constitute a violation of applicable U.S.

securities laws.

By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the laws of

any relevant jurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this Presentation should not

rely or act upon it.

Documents

Corporate Presentation - Investis CMSfiles.investis.com/coastal/media/presentation/2007-12-17.pdf · Corporate Presentation December, ... 1-Audit Committee Member 2-Compensation Committee