Coastal Energy Announces 2011 Year End Financial Results05:30 EDT Thursday, March 29, 2012HOUSTON, March 29, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production company with assets in Thailand, announces the financial results for the year ended December 31, 2011. The functional and reporting currency of the Company is the United States dollar.Fourth Quarter 2011 Highlights Total Company production increased to 14,508 boe/d in the fourth quarter from 7,552 boe/d in the same period last year. The Company's offshore production was bolstered by the inclusion of a full quarter of production from the B platform at the recently discovered Bua Ban North field. The Company began tying in production at Bua Ban North A late in Q4 and realized production gains from that field beginning in 2012. Average onshore production was 1,122 boe/d, impacted by decreased demand due to the severe flooding in Thailand in Q3 and Q4 2011. Demand has made a significant recovery in 2012.   EBITDAX for the fourth quarter was $75.1 million, significantly higher than the $4.4 million recorded in Q4 2010.   The Company announced several successful appraisal and development wells at the Bua Ban North A & B platforms. These wells helped to further delineate the field and confirm that the two fields are in fact connected. One horizontal well was drilled during the quarter and began producing at a rate of approximately 3,000 bopd. The Company plans to drill several more horizontal development wells at the field to increase production and total recovery.Full Year 2011 Highlights Total Company production averaged 11,540 boe/d for the full year of 2011, 19% above 2010 levels.   The Company made significant discoveries at the Bua Ban North field and was able to begin production within three months of the initial discovery. The Company continued to appraise and develop the field throughout the year.   The Company's full year 2011 EBITDAX was $201.7 million, 76% above 2010 EBITDAX of $114.3 million.   The Company released the results of its third-party reserve evaluation report prepared by RPS Energy, Ltd. dated March 27, 2012 (effective date December 31, 2011). The Company reported significant gains in its 1P and 2P reserve bases, with volumetric increases of 211% and 102%, respectively. The Company's 1P and 2P NAVs also increased significantly, rising by 207% and 140%, respectively.   As a result of its increased cash flow due to higher production and commodity prices, the Company has repaid $30 million of its outstanding debt balances in the first quarter of 2012. As of the date of this release, the Company has $55 million of cash and cash equivalents and $50 million of debt outstanding.                   As of December 31, 2011 (mmboe)As of December 31, 2010 (mmboe) % ChangeAfter-Tax NPV 2011 (US$MM)After-Tax NPV 2010 (US$MM) % ChangeProven              Offshore 62.5 14.5 331% $1,491.7 $413.5 261%  Onshore 7.4 8.0 -8% 126.5 114.0 11% Total 1P 69.9 22.5 211% 1,618.2 527.5 207%Proven + Probable              Offshore 80.0 27.1 195% $1,668.0 $583.6 185%  Onshore 22.9 23.9 -4% 230.7 207.0 12% Total 2P 102.9 51.0 102% 1,898.7 790.6 140%               Note: Reserve figures are shown as net working interest before royalties (Thailand royalty regime is discussed in the MD&A of the Company's Annual Report dated December 31, 2011). After-tax NPV figures are defined as future net revenues discounted at 10%. Reserve numbers taken from the Company's competent person's report prepared by RPS Energy Ltd. dated as of December 31, 2011 (prepared in accordance with NI 51-101 and the COGE Handbook) which may be found on the Company's website at www.coastalenergy.com.             Randy Bartley, President and CEO of Coastal Energy, commented: "2011 was the most successful year in Coastal's history. The Company delivered record production and cash flow. We also had a major discovery at the Bua Ban North field, which helped to increase our offshore 2P reserves by nearly 200%. We are very pleased with the results of 2011 and expect to build further on this success. "2012 has also begun extremely well. We have drilled and tied in a handful of additional wells at Bua Ban North which have further boosted production. These wells were tied in during the month of February and brought average offshore production for the entire first quarter up to 21,100 bbl/d. Our current offshore production is 22,500 bopd.    "We have a very busy year ahead as we continue to develop Bua Ban North as well as perform redevelopment and injection drilling at Songhkla A. Additionally, we will continue exploring our substantial prospect inventory."  The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three and twelve months ended December 31, 2011 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal's website at www.CoastalEnergy.com or on SEDAR at www.sedar.com. All amounts are in US$ thousands, except share and per share amounts.     Consolidated Statements of Operations and Comprehensive Income (Loss)  US$000's except per share amounts          Years Ended December 31, 2011 2010     (Note 29) Revenues and Other Income    Oil sales, net of royalties (Note 18)318,670 177,207 Other income (Note 19)(21,566) (19,207)  297,104 158,000     Expenses    Production99,263 53,326 Depreciation and depletion (Note 8)61,136 29,658 Impairment (Note 8) -  10,706 General and administrative31,453 20,253 Exploration (Note 7)8,374 72,170 Debt financing fees796 522 Finance (Note 17)4,825 2,295 Gains on disposal of property, plant and equipment(873)  -   204,974 188,930    Net income (loss) before income taxes and share of  Net income from Apico LLC92,130 (30,930)     Share of net income from Apico LLC (Note 9)14,527 7,932    Net income (loss) before income taxes106,657 (22,998)    Income taxes (Note 24)    Current135 (7) Deferred57,882 (11,768) 58,017 (11,775)    Net income (loss) and comprehensive income (loss)48,640 (11,223)    Net income (loss) and comprehensive income (loss) attributable to:   Shareholders of Coastal Energy47,359 (12,390) Non-controlling interest1,281 1,167 48,640 (11,223)    Net income (loss) per share:    Basic (Note 22)0.42 (0.12) Diluted (Note 22)0.41 (0.12)       The accompanying notes are an integral part of these condensed interim consolidated financial statements.             Consolidated Statements of Financial Position     US$000's                  December 31,   December 31,   January 1, As at2011 2010 2010   $   $   $       (Note 29)   (Note 29) Assets      Current Assets       Cash22,995 3,884 21,229 Restricted cash (Note 4)28,447 16,369 3,829 Accounts receivable (Note 5)16,939 10,299 6,111 Derivative asset (Note 14)59 135 66 Inventory (Note 6)14,161 12,783 5,310 Prepaids and other current assets1,094 606 526 Total current assets83,695 44,076 37,071        Non-Current Assets       Exploration and evaluation assets (Note 7)31,881 31,068 44,907 Property, plant and equipment (Note 8)355,052 246,248 189,534 Investment in and advances to Apico LLC (Note 9)47,698 47,261 55,225 Deposits and other assets405 289 300 Total non-current assets435,036 324,866 289,966Total Assets518,731 368,942 327,037        Liabilities      Current Liabilities       Accounts payable and accrued liabilities (Note 10)59,471 53,550 31,363 Deferred revenue (Note 11)-   -  23,060 Current portion of long-term debt (Note 14)55,662 36,262 10,266 Amounts due to shareholder (Note 13) -   -  5,164 Obligations under finance leases (Note 16) -  885 35 Current portion of derivative liabilities (Note 14)14,557 10,141  -  Derivative liability - Warrants (Note 12)2,853 2,191 3,371 Total current liabilities132,543 103,029 73,259        Non-Current Liabilities       Long-term debt (Note 14)22,156 35,081 24,284 Obligations under finance leases (Note 16) -  579 1,439 Non-current portion of derivative liabilities (Note 14)1,274 6,609  -  Deferred tax liabilities69,767 11,885 23,653 Decommissioning liabilities (Note 15)42,124 17,655 4,071 Total Non-Current Liabilities135,321 71,809 53,447        Shareholders' Equity (Note 22)       Common shares211,554 201,303 198,121 Contributed surplus16,401 15,971 13,932 Retained earnings (accumulated deficit)17,630 (29,729) (17,339) Total Shareholders' Equity245,585 187,545 194,714 Non-controlling interest5,282 6,559 5,617Total equity250,867 194,104 200,331Total liabilities and equity518,731 368,942 327,037         Commitments and contingencies (Note 23)               The accompanying notes are an integral part of these condensed interim consolidated financial statements.               Consolidated Statements of Cash Flow     US$000's           Years Ended December 31, 2011 2010     (Note 29) Operating activities    Net income (loss)48,640 (11,223) Adjustments:    Share of net income from Apico LLC(14,527) (7,932) Unrealized (gain) loss on derivative instruments(843) 16,681 Depletion and depreciation61,136 29,658 Impairment -  10,706 Finance expense4,825 2,295 Amortisation of debt financing fees786 132 Stock-based compensation15,185 7,827 Deferred income taxes57,882 (11,768) Unrealized foreign exchange loss (gain)388 (639) Exploration expense8,374 72,170 Gains on disposal of property, plant and equipment(873)  -  Income taxes paid(86)  -  Interest received6 5 Interest paid(4,022) (3,203) Earnings distributions from Apico LLC15,536 15,896 Change in non-cash working capital (Note 25)(3,559) (25,629) Cash flow provided by operating activities188,848 94,976      Financing Activities     Issuance of common shares, net of issuance costs7,907 2,409 Borrowings under long-term debt6,275 73,725 Repayment of long-term debt -  (34,550) Loan arrangement fees(594) (2,514) Repayment of amounts due to shareholder -  (5,164) Payments to non-controlling interest(2,558) (225) Other(506)  -  Cash flow provided by financing activities10,524 33,681      Investing Activities     Increase in restricted cash(12,078) (12,540) Purchase of property, plant and equipment(165,099) (133,375) Advances to Apico LLC(1,446)  -  Proceeds from disposal of property, plant and equipment250  -  Deposits and other assets(116)  -  Cash flow used in investing activities(178,489) (145,915)      Effect of exchange rate changes on cash(1,772) (87)      Increase (decrease) in cash19,111 (17,345)     Cash - Beginning of year3,884 21,229     Cash - End of year22,995 3,884      The accompanying notes are an integral part of these condensed interim consolidated financial statements. Randy Bartley, President and Chief Executive Officer of the Company and a member of the Society of Petroleum Engineering and Jerry Moon, Vice President, Technical & Business Development, a member of the American Association of Petroleum Geologists, a Licensed Professional Geoscientist and a Certified Petroleum Geologist in the state of Texas, have reviewed the contents of this announcement. Additional information, including the Company's complete competent person's report may be found on the Company's website at www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com. The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062 This statement 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. These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release is not for dissemination in the United States or through United States newswire services.CONTACT: Enquiries: Coastal Energy Company Email: investor@CoastalEnergy.com +1 (713) 877-6793 Strand Hanson Limited (Nominated Adviser) Rory Murphy / Paul Cocker / Scott McGregor +44 (0) 20 7409 3494 Macquarie Capital (Europe) Limited (Broker) Paul Connolly / Jeffrey Auld +44 (0) 20 3037 2000 FirstEnergy Capital LLP (Broker) Hugh Sanderson / Travis Inlow +44 (0) 20 7448 0200 Buchanan Tim Thompson / Ben Romney +44 (0) 20 7466 5000