Corporate Presentation April PDF Free Download

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. 2

Offshore Thailand Onshore Thailand Total Company 32.9 mmbl of 2P Reserves 10,500 bopd avg. production $5.23 per share post-tax 2P NAV 22.1 mmboe of 2P Reserves 2,000 boe/d avg. production $1.84 per share post-tax 2P NAV 55.0 mmboe of 2P Reserves 12,500 boe/d avg. production $7.07 per share post-tax 2P NAV Offshore Thailand Two fields currently producing Songkhla Field: Successful appraisal and exploration has added over 80 mmbbl of oil in place in the Oligocene and Eocene Currently producing approximately 8,500 bopd Bua Ban Field: First phase of development drilling is complete Currently producing approximately 2,000 bopd Exploration program targeting over 150 mmbbl of prospective resources in 1H2011 Onshore Thailand EU1 / E5N contains the Sinphuhorm gas field Currently producing 2,000 boepd Gas sold to Nam Phong power plant under a 15-year Gas Sales Agreement A 3D seismic program is underway over the Sinphuhorm field Note: Reserve numbers from Competent Person s Report dated 12/31/2009 prepared by Huddleston & Co. 3

Investment Highlights Key Highlights Growing Oil Focused Production Profile Established production base of 12,500 boepd which is 85% offshore oil and 15% onshore natural gas (natural gas pricing is based on oil products) Significant Acreage and Drilling Inventory with substantial upside potential High impact exploration drilling in 2011 testing over 150 mmbbl of prospective resources 1.4 million acres in the Gulf of Thailand and over 30 identified prospects (1 million acres is contiguous in the southern area of the block and the remaining 400,000 is contiguous in the northern area) Cost-effective Shallow Water Development Use of mobile platforms and FSOs lowers operating costs and F&D costs Strong Management and Shareholder Support 70% of outstanding shares owned by management and top 4 shareholders 4

Quarterly Production (BOE / D) Growing Production Profile Drilling Program Average Daily Production 2011 Highlights Exploration drilling targeting over 150 mmbbl of prospective resources in the first half of the year Exploration at Bua Ban North underway; initial exploration wells have discovered productive zones in the Miocene and Upper Oligocene Initial fracture stimulation results at Bua Ban are positive 2011 capex program of $150MM: 50% development drilling and 50% exploration drilling 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Offshore Onshore 5

Coastal Energy 2011 EBITDAX ($MM) 2011 EBITDAX Sensitivity (Offshore Only) 405.0 380.0 355.0 330.0 305.0 280.0 255.0 230.0 205.0 180.0 155.0 130.0 $70.00 $75.00 $80.00 $85.00 $90.00 Realized Crude Oil Price ($/bbl) 11,000 bbl/d 13,000 bbl/d 15,000 bbl/d 6

Company Snapshot Financial Information Cash (as at 9/30/10) $27MM Total Debt (as at 9/30/10) $58MM Share Price (as at 4/6/11) C$6.12 After-tax 2P NAV per share (fully diluted) C$7.07 Current Market Cap $700MM Shares Outstanding 111,843,893 Shares Outstanding, fully diluted 114,293,504 Proven Reserves (After-tax PV10) Offshore Onshore Total Proven + Probable Proven + Probable + Possible 15.2 mmbbl ($345 MM) 32.9 mmbbl ($577 MM) 48.4 mmbbl ($737 MM) 8.0 mmboe ($108 MM) 22.1 mmboe ($204 MM) 22.1 mmboe ($204 MM) 23.2 mmboe ($453 MM) 55.0 mmboe ($781 MM) 70.5 mmboe ($941 MM) Production 10,500 bopd 2,000 boepd 12,500 boepd *Average of analyst estimates at Stifel Nicolas Weisel, Paradigm Captal, Canaccord Genuity and Macquarie Capital 7

Summary of Exploration Plan Through Q311 we will test prospects with unrisked prospective recoverable resources of 150 mmbbl: Bua Ban Fracture Testing (50 mmbbl); initial fracture testing completed in early March in two wells Bua Ban North (Lower Oligocene 15 mmbbl, Miocene 15 mmbbl, Eocene 45 mmbbl); drilling of multiple exploration prospects began in February 2011; initial results from A-01 well discovered pay zones in the Miocene and Upper Oligocene intervals and oil bearing sands in the Eocene; the A-04 well discovered a pay zone in the Miocene as well as sands in the Deeper Miocene and the Upper Oligocene; further exploration/appraisal drilling is underway; a MOPU will be on location in mid-may to begin production testing Bua Ban South Miocene (35 mmbbl); scheduled to begin exploration/appraisal drilling in late Q1 2011; to the south of the two Bua Ban wells which have already encountered productive Miocene sands 9

Songkhla A B L O C K G 5 / 4 3 Bua Ban South Bua Ban North Offshore Exploration Plan 150 mmbbl of Prospective Resources 2 0 1 1 Mar Apr May Jun Jul Aug Sep Drill Bua Ban North A, B and C Oligocene, Eocene and Miocene Exploration prospects (up to 75 mmbbl potential recoverable) Legend In Progress Planned Install MOPU and begin production testing Drill up 2 Miocene exploration and 6 Lower Oligocene development wells at Bua Ban South (up to 35 mmbbl potential) Test of Lacustrine shale at Bua Ban Main (50 100 mmbbl potential) By June 2011 we will have tested over 150 mmbbl of prospective resources Drill appraisal/development wells on recent discoveries 10

Songkhla Bua Ban Producing approximately 8,500 bopd Reserve and production upside has been confirmed with the successful exploration of Songkhla East Oligocene and Eocene Field 2P reserves of 11.1 mmbbl Producing approximately 2,000 bopd A-03 and A-11 Micoene wells under evaluation along with frac results for A-04 and A-07 wells Field 2P reserves of 21.8 mmbbl Exploration Upside The A-01 and A-04 wells have confirmed the Miocene play at Bua Ban North A A-01 also encountered net pay in the Upper Oligocene and oil bearing sands in the Eocene Two more wells planned at Bua Ban North A before moving to Bua Ban North B 11

Bua Ban Main & Exploration 12

Bua Ban Terrace Bua Ban North B Bua Ban North Basin Exploration Program 1H 2011 Discoveries to Date Discovery Interval Discovery Depth (Feet) STOOIP (MMBO) P50 Recoverable (MMBO) P50 Bua Ban North A BBNA D01 & D04 Miocene 3500-3650 14.4 4.3 BBNA D01 & D04 Upper Oligocene 5150 4.2 1.3 BBNA D01 Eocene 8100 18.5 3.7 Total 37.1 9.3 Prospects Bua Ban Field Prospect Area Interval Prospect Depth (Feet) Unrisked STOOIP (MMBO) P50 Unrisked Recoverable (MMBO) P50 Bua Ban North A Miocene/Upper Oligocene 3500-5500 45 11 Bua Ban North B Miocene/Oligocene/Eocene 3400-7800 116 22 Bua Ban Terrace Miocene/Oligocene/Eocene 2600-5800 202 42 Bua Ban South Bua Ban South Miocene/Oligocene/Eocene 2600-7800 202 47 Total 566 122 13

Average Porosity (Eocene Reservoir) Significant Exploration Upside Potential in the Eocene Reservoir Porosity vs. Depth in Eocene Reservoir Terrace 20.0% Benjarong South 18.0% Drilled to date Benjarong A-02 Benjarong A-01ST1 Benjarong A-01 Songkhla A-09 Songkhla A-03 Songkhla # 1 Bua Ban A-07 Bua Ban #1 Songkhla A-07 Bua Ban A-04 Songkhla SW 1 Songkhla South 1 Bua Ban North A Bua Ban North B To be drilled in 1H11 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% Higher quality Eocene sands are expected on the northern exploration prospects planned for 1H11 drilling 2.0% 0.0% 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 True Vertical Depth Observed Projected 14

Prospective Bua Ban Resources P50 ( Base ) Case Prospect Area Prospects Interval Prospect Depth (TVDSS ft) Unrisked (P50) STOOIP (MMBO) Recovery Factor Unrisked (P50) Recoverable (MMBO) Bua Ban North A Miocene D, E, F, O & T Miocene 3500 30.2.25 7.6 Upper Oligocene B, C & E Upper Oligocene 5500 14.5.25 3.6 Total 45.2 11.2 Bua Ban North B Miocene G, H, I, P, R & S Miocene 3400 59.3.25 14.8 Lower Oligocene Songkhla E Lower Oligocene 6200 17.0.20 3.4 Eocene Songkhla E Eocene 7800 39.9.10 4.0 Total 116.2 22.2 Bua Ban Terrace Bua Ban Terrace C & K Miocene 2600-3500 20.2.25 5.1 Bua Ban Terrace C Lower Oligocene 5100 40.7.20 8.2 Bua Ban Terrace C & E Eocene 5550 141.5.20 28.3 Total 202.4 41.6 Bua Ban South Songkhla G B & C and Terrace J Miocene 2600 133.9.25 33.5 Bua Ban Terrace G & H Eocene 5800-7800 68.5.20 13.7 Total 202.4 47.2 Total All Prospects 566.2 122.2 15

Lower Miocene M100 Time Structure Contour Interval: 5 ms 500 meters oil prospect penetration interval wet Interval tight or absent Bua Ban North A-02 M100 wet Bua Ban North A-02 Bua Ban North A-01 M100 wet Bua Ban North A-05 M100 penetration (Anticipated wet) Bua Ban North A-05 Drilling or proposed well Bua Ban North A-04 M100 wet Bua Ban North A-04 Bua Ban North A-01 Prospect Miocene E M100 145 acres 5.2 MMBO OOIP Lower Miocene M100 Prospect D 70 acres 2.7 MMBO OOIP Prospect Miocene F M100 111 acres 5.0 MMBO OOIP Bua Ban North A-03 Bua Ban North A-03 M100 penetration Prospect Miocene O M100 65 acres 2.9 MMBO OOIP Coastal Energy Company 2011 All Rights Reserved

Lower Miocene M500 Time Structure Contour Interval: 5 ms 500 meters oil prospect penetration interval wet Lower Miocene M500 Discovery 217 acres 7.2 MMBO OOIP Bua Ban North A-05 M500 penetration (confirmation well) Interval tight or absent Drilling or proposed well Bua Ban North A-02 Bua Ban North A-02 M500 sands absent Bua Ban North A-05 Lower Miocene M500 Prospect T 61 acres 2.7 MMBO OOIP Bua Ban North A-01 M500 33 net pay Bua Ban North A-04 M500 33 net pay (22 +11) Bua Ban North A-04 Bua Ban North A-01 Lower Miocene M500 Discovery 257 acres 7.2 MMBO OOIP Lower Miocene M500 Prospect E 214 acres 7.7 MMBO OOIP Bua Ban North A-03 Lower Miocene M500 Prospect F 172 acres 6.2 MMBO OOIP Bua Ban North A-03 M500 penetration Coastal Energy Company 2011 All Rights Reserved

Upper Oligocene Time Structure Contour Interval: 20 ms 500 meters oil prospect penetration interval wet Interval tight or absent Upper Oligocene Prospect E 332 acres 9.0 MMBO OOIP Bua Ban North A-02 Bua Ban North A-05 Upper Oligocene penetration Drilling or proposed well Bua Ban North A-02 Upper Oligocene wet Bua Ban North A-05 Bua Ban North A-01 Upper Oligocene 27 net pay Bua Ban North A-04 Upper Oligocene 11 net pay Bua Ban North A-04 Bua Ban North A-01 Upper Oligocene Discovery 168 acres 4.2 MMBO OOIP Upper Oligocene Prospect B 102 acres 2.7 MMBO OOIP Bua Ban North A-03 Upper Oligocene Prospect C 105 acres 2.8 MMBO OOIP Coastal Energy Company 2011 All Rights Reserved

Planned Well Volumes Well Total by Zone A01 A03 A04 A05 Interval Miocene M100 5.0 4.8 9.8 Miocene M500 8.4 7.7 12.4 28.5 Upper Oligocene 4.5 9.0 13.5 Total by Well 12.9 12.7 17.2 9.0 51.8 Total Remaining Prospects All Volumes are MMBO OOIP unrisked Green = Discovered OOIP Prospect Volumes Prospect Total by Zone E O T Up Olig B U Olig C Remaining Miocene M100 6.5 2.9 9.4 Miocene M500 9.6 2.7 12.3 Upper Oligocene 2.7 2.8 5.5 Total by Well Total Remaining Prospects 16.1 2.9 2.7 2.7 2.8 27.2 Coastal Energy Company 2011 All Rights Reserved

Songkhla 20

Songkhla A: Oligocene SA-07ST Songkhla Exploration Results Well Interval Net Pay Porosity A-09 Oligocene 140 feet 15% Eocene 75 feet 16.5% A-11 Oligocene 44 feet 18% Eocene 69 feet 21% A-12 Oligocene 105 feet 20% Eocene 43 feet 19% Producer Injector SA-12ST Songkhla East drilling results confirm migration east of the Songkhla Wedge Further appraisal and exploration drilling will be required to determine areal extent SA-07 sidetrack is currently being drilled An additional 5 development wells are currently planned 80 mmbbl of oil in place discovered in Oligocene and Eocene by recent drilling 21

Songkhla A: Eocene 80 Net Pay (TVDFT) in Eocene Oil in Eocene Eocene Development Proposed Location 69 52 136 47 Well Interval Net Pay Porosity A-07 Eocene 140 feet 17% A-09 Eocene 52 feet 21% A-11 Eocene 69 feet 21% A-12 Eocene 0 feet N/A A-12ST Eocene 47 feet 19% Songkhla Eocene mapping is still in progress The Eocene appears to be highly faulted 1000 m Top Corporate Eocene Presentation depth April structure 2011 22

Offshore Netbacks ($ / bbl) Improving Offshore Operating Netbacks $80.00 $70.00 $60.00 $50.00 $3.35 $3.85 $4.64 $22.19 $5.12 $14.21 $5.45 $14.67 $6.68 $15.99 $40.00 $2.38 $16.96 $29.41 $30.00 $20.00 $1.50 $11.16 $14.63 $39.42 $50.08 $52.68 $44.58 $10.00 $15.98 $19.12 $29.55 $23.77 $0.00 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Cash Taxes Royalties Production expense Cash Operating Netback 24

US $000s Increasing EBITDAX 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 35,496 (1) 29,854 44,508 10,000 5,000-14,967 12,520 3,557 6,820 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 '10 Q3 '10 Note (1): EBITDAX in Q2 10 is lower than in Q1 10 due to the timing of liftings. The Company had approximately 222,000 bbls of crude oil inventory at the end of Q2 10. 25

Time (sec) Time (sec) G5/43 South Exploration: Bua Ban North A & B W Songkhla D Prospect E Top Lower Oligocene Lst Top Eocene Base Lower Oligocene Reservoir Bua Ban North B Reprocessed PrSDM Time Domain 1000 meters W Bua Ban North C Prospect Songkhla E Prospect E Bua Ban North A Top Lower Oligocene Lst Reprocessed PrSDM Time Domain Top Eocene Base Lower Oligocene Reservoir 1000 meters 1000 meters Base Lower Oligocene Sand Time Structure 20 ms contour interval 27

Songkhla Stratigraphy Benjarong 1 Songkhla 1 Reservoir Seal Reservoir Source Eocene Reservoir 28

Eocene Lower Oligocene 29

Upper Oligocene Miocene 30

Songkhla Basin Regional Cross Section SW Bua Ban Field Songkhla Field NE 31

Thailand Fiscal Terms G5/43 Thai III regime Royalty payable on a sliding scale determined by monthly production volume (5 15%) Current monthly production volume results in 7% effective royalty rate; monthly production of 20,000 bopd results in 10% effective royalty rate Petroleum Income Tax ( PIT ) payable on net income after deductions Allowable deductions: Royalty, Operating Expenses, Depreciation Allowance, Special Remuneratory Benefit, Loss Carryforward Tangibles depreciated straight-line over 5 years Pre-production intangibles depreciated straight-line over 10 years Post-production intangibles expensed as incurred Resulting net income taxed at 50% rate Coastal expects its overall effective tax rate to be approximately 5-10% in 2010* Coastal does not expect to incur any SRB liability in 2010 *Assumes $115MM capex for development of Bua Ban and Benjarong; $70/bbl realized; Average daily offshore production of 10K bopd in 2010 32

Special Remuneratory Benefit Designed as a Windfall Profits Tax for high oil price environments Assessed on a sliding scale basis determined by Revenue per Meter Drilled Petroleum Revenue applied to sliding scale is adjusted for inflation and exchange rate fluctuations (0 75%) Coastal s offshore concessions provide a 600,000 meter allowance to be added to actual drilling footage Tax assessed on Petroleum Profit Allowable deductions: Royalty, Capital Expenditures, Operating Expenses, Loss Carryforward All Capex is expensed as incurred, with a special 35% uplift on facilities capex Allows for full capital recovery plus uplift SRB is deductible for PIT purposes 33

Special Remuneratory Benefit Example Revenue: $250MM Adjusted Revenue: $200MM Deductible Expenses - $345MM Royalty (10%): $25MM Operating Expenses: $50MM Capital Expenditures: $120MM ($80MM intangible, $30MM facilities +35% facilities uplift) Loss Carryforward: $150MM Petroleum Profit: -$95MM ($250MM - $345MM), $95MM loss carried to next year Adjusted Revenue per Meter Drilled $200MM / (600,000 + 15 wells X 3,000 meters) = $310 per meter Resulting SRB rate is approximately 25% per sliding scale (USD/THB rate of 35 was used); applied to negative Petroleum Profit results in no SRB payable Adj. Revenue per Meter SRB Rate <137 0 137 411 1% for each $7 411 960 1% for each $27 >960 1% for each $110 34

Legal Disclaimer The 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. 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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. 35

Corporate Presentation April 2011