The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from GlobeNewswire (a Nasdaq OMX company)

Coastal Energy Announces Initiation of Normal Course Issuer Bid

Tuesday, May 22, 2012

Coastal Energy Announces Initiation of Normal Course Issuer Bid13:15 EDT Tuesday, May 22, 2012HOUSTON, May 22, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX:CEN) (AIM:CEO) advises that the TSX ("TSX") has accepted Coastal's Notice of Intention to make a Normal Course Issuer Bid to purchase some of its common shares through the facilities of the TSX and through other Canadian market places. The normal course issuer bid ("NCIB") will commence on May 25, 2012 and terminate on the earliest of the purchase of 5,715,972 common shares, Coastal providing a notice of termination, and May 24, 2013. Any common shares purchased pursuant to the Normal Course Issuer Bid will be cancelled by the Company. A copy of the Company's Notice filed with the TSX may be obtained, by any shareholder without charge, by contacting Coastal's Corporate Secretary. Coastal seeks to purchase up to 5,715,972 common shares over the course of the next twelve months, being 5% of its issued and outstanding common shares as of May 17, 2012. No more than the greater of 25% of the average daily trading volume of Coastal's listed shares (currently 81,998 shares per day) or 1,000 shares will be purchased on the same trading day. As of May 17, 2012, Coastal had 114,319,444 common shares issued and outstanding. Purchases will be made in open market transactions by a registered investment dealer through the facilities of the TSX and through other Canadian market places, or by such other means as may be permitted by the TSX, and under applicable laws. There can be no assurance as to the precise number of shares that will be repurchased under the share repurchase program, or the aggregate dollar amount of the shares purchased. This news release does not constitute a solicitation of an offer to buy any of the securities in the United States. Randy Bartley, President and CEO, commented: "Coastal believes that it is beneficial to have the flexibility to purchase its common shares. Depending upon market conditions, purchases of its common shares at the prevailing market prices may be a prudent investment and in the best interests of its shareholders." The purchase of and payment for the common shares of Coastal purchased pursuant to the NCIB will be made by Coastal in accordance with the policies and rules of the TSX and the price which Coastal will pay for any such common shares will be the market price of such common shares at the time of acquisition. Coastal has retained Paradigm Capital as its broker to conduct the NCIB on behalf of Coastal. Reporting of all activity under the NCIB will be made in accordance with TSX guidelines. In the normal course of business, the Company occasionally receives expressions of interest in the company, or its assets, from other parties. While such discussions take place from time to time, should any future inquiries result in a formal offer, the Company will immediately suspend the share repurchase program. Furthermore, the Company may choose to suspend the share repurchase program at any time for any reason regardless of any expressions of interest. Additional information, including the Company's complete competent person's report may be found on the Company's website at or may be found in documents filed on SEDAR at Forward Looking Information: The above contains forward-looking statements regarding timing and amount of common share purchases by the Company and the potential value of the Company's business and shares. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimated," "potential," "possible" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, hydrocarbon price volatility, share price volatility, operational risks, uncertainties in estimating mineralization, future expenses and revenues, political and country risk, regulatory risk, and those other risks described in the Company's most recent Annual Information Form and Management Discussion and Analysis of the Company filed with Canadian securities regulators and are available at In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industry in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no intention or obligation to update or revise such forward-looking statements whether as result of new information, future events or otherwise, except as required under applicable securities regulation. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. The Coastal Energy Company logo is available at Coastal Energy Company Email: +1 (713) 877-6793 Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy Paul Cocker Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037 2000 Ben Colegrave Paul Connolly FirstEnergy Capital LLP (Broker) Hugh Sanderson Travis Inlow +44 (0) 20 7448 0200 Buchanan Communications Tim Thompson Ben Romney +44 (0) 20 7466 5000