US exploration and production company Coastal Energy has posted a £10million drop in pre-tax profits for the first nine months of the year.
Despite a boost in the third quarter, up from £54million to £66million previously – pre-tax profits in the first three quarters were £180million.
Turnover to the end of September was up £30million to £337million, while turnover in the third quarter rose £39million to £131million.
The company’s offshore production was up in the third quarter to 22,388 barrels a day, while onshore production declined to 1,444 barrels of oil equivalent per day (boe/d) as a result of extended seasonal maintenance at the Nam Phong power plant.
Total production at the south-east Asia focused company was 21,832 boe/d in the third quarter and 22,942 boe/d for the nine-month period, up from 22,093 boe/d last year, due to further development drilling.
Two development wells at the Kapal field in Malaysia were completed in the third quarter and the company is currently drilling a third. First oil is expected by early December.
The company also complete hydraulic fracturing stimulation at four of five wells at Bua Ban Main field in the Songkhla area, while a successful exploration well was drilled on onshore Thailand.
“The company continued to make progress in the third quarter of 2013,” said chief executive Randy Bartley. “The first wells at the Kapal field were drilled and we expect first production in Malaysia very shortly. Offshore Thailand production increased slightly from year ago levels and we expect gains to offshore production once the development drilling programme at Bua Ban North resumes.”
The company’s Bua Ban South frac wells continued to perform in line with expectations, and although the first two wells at the Bua Ban Main had been disappointing, early results from the third and fourth wells proved promising, he said.
“There is a significant amount of oil in place in these tighter reservoirs and we continue to be excited about the application of fracture technology in the Songkhla Basin,” said Mr Bartley.
“We plan to move the rig to the Meranti field in Malaysia following completion of the work in Kapa, which will serve to increase production in Malaysia in late 2013 to early 2014.”
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