Corporate Presentation - Coastal Energy · Corporate Presentation September 2013 16 Bua Ban Pilot Fracturing Program Bua Ban South A -01 and A -03 were successfully fracked in Q113

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© Coastal Energy Company 2013 | All Rights Reserved

Corporate Presentation September 2013

2 Corporate Presentation September 2013

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.

Forward Looking Statements


Note: 2012 reserve figures per RPS Energy Ltd. report as of December 31, 2012; prospective resource volumes are undiscovered and represent internal estimates *1H 2013 post-tax figures include accrual for taxes to be paid in 2H 2013 & 1H 2014

Investment Highlights

Solid Reserve Base with Substantial Exploration Upside

2P Reserves of 144.3 mmboe; 3P Reserves of 196.1 mmboe

Additional 10.0 mmboe of Contingent Resources

>30 identified prospects comprising 477 Mmbbls offshore prospective resources

Substantial 2013 Drilling Program Two rigs running for entire year

First oil expected in Malaysia in 2H2013

Strong Offshore Netbacks

1H 2013 Offshore pre-tax cash flow per bbl of $63.89

1H 2013 Offshore post-cash tax netback of $41.36 / bbl offshore*

Growing Production & Cash Flow YTD Production (through August 31) ~23,300 boepd, 5-Year CAGR of 56%

2012 Cash Flow from Operations of $382MM, 102% YoY growth

Strong Financial Position with Low Net Debt

$85MM cash balance at August 31st

$100MM drawn on revolving credit facility


Company Overview

Operational Overview Asset Overview

Financial Overview ($US in millions, except shares / share price)

Share Price (at 9/12/13) C$17.75

Shares Outstanding 113.3

Shares Outstanding, Fully Diluted 117.1

Equity Value / Market Cap. $2,156.2

Debt (at 8/31/13) $100.0

Cash (at 8/31/13) $85.0

Enterprise Value $2,201.2

Production

Current Production (boepd) 23,000

Offshore Production (oil) 20,500

12/31/2012 RPS Reserves1

2P (Mmboe) 144.3

% Oil 84%

Increase vs. YE 2011 2P 40%

After-Tax 2P PV-10 ($MM) $2,713.1

Prospective Resources (Recoverable - Mmboe)2 477.0

(1) Per RPS Energy, Ltd. Reserve evaluation as of 12/31/2012 (2) Internal estimate - offshore only


Thailand Asset Overview Offshore Thailand

Bua Ban North

Booked 68 Mmbbl 2P in 2011; added 40 Mmbbl 2P at 3/31/2012

Bua Ban South

Pilot fracking program was successful and two frac wells are onstream

56 mmbbl of prospective resources at Bua Ban South

34 mmbbl Miocene and 22 mmbbl Eocene tight sands

Bua Ban Main

5 well Eocene frac program underway

Songkhla A

New fault block to the northeast of Songkhla A discovered in 2013

Will require new facilities to develop

Onshore

Sinphuhorm gas field current production ~2,500 boepd

8 years remaining on Gas Sales Agreement with Nam Phong power plant; 10 year extension option

Dong Mun discovery being evaluated for development

10 Mmboe contingent resources


Malaysia RSC Contract

Coastal is developing the Kapal, Banang and Meranti fields (KBM) offshore Malaysia for Petronas

Coastal is a 70% partner and a local Malaysian contractor (Petra) is a 30% partner

First oil from Kapal is expected in Q313, while first oil at Benang and Meranti is expected in Q114 and Q219, respectively

There are existing discoveries at each field. Coastal estimates recoverable oil could be anywhere from 15 to 35 Mmbbl

The Capital Expenditure of KBM Cluster is estimated to be USD320 million over the life of the project

Contractors are subjected to the Corporate Income Tax Act (CITA) and not the Petroleum Income Tax Act (PITA). Corporate tax payable by the Contractor Group under CITA is at the prevailing rate of 25%


Substantial Organic Reserve Growth

51.0

102.8 27.3 6.7 7.4

144.2 51.9

10.0

484.8

0

100

200

300

400

500

600

700

800

2P YE 2010 2P YE 2011 2P Bua BanNorth Addition

2P Bua BanSouth Addition

Other 2PYE2012

3PYE2012

Contingent Prospective

(Mm

boe)

144 Mmboe 2P reserves at 12/31/2012 (84% oil/offshore, 53% 1P)*

Near-term drilling program could result in significant additional uplift

Opportunity to de-risk ~660 Mmbbls of unrisked oil-in-place through year-end 2013

*Per RPS Energy, Ltd. Reserve evaluation as of December 31, 2012 Note: Offshore prospective resources reflect internal estimates


0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2013Est.

($U

S M

M)

0

5,000

10,000

15,000

20,000

25,000

30,000

2008 2009 2010 2011 2012 2013Est.

(Boe

pd)

Onshore Offshore Malaysia

Production Growth EBITDA Growth

Growth Remains on Upward Trajectory

3,666

7,362

9,670

11,540

21,838

25,800

$5.9 $37.9

$114.3

$201.7

$575.0 $600.0


$21.81

$17.75

$2.10

$0.00

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Net Asset Value per RPS Share Price at Sep 12

Offshore 2P Onshore 2P

Shares at Discount to 2P NAV as per RPS


2013 EBITDAX Sensitivity

Note: Assumes 2013 guidance of 33,000 boepd, $19/boe OpEx and $315 MM capital program


Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013

Drilling Sequence Thailand & Malaysia

Aug 2013

Exploration Appraisal Development

SKL A side

track

G5/43 Expl

Bua Ban Main Side tracks and fracs

SKL C side

tracks SKL A

G5/50 KK02 Expl

G5/43 KW01 Expl

Vicksburg

Manta Bua Ban North Development Kapal Appraisal Wells

http://www.google.co.th/url?sa=i&source=images&cd=&cad=rja&docid=JNUTYhUMoOSDXM&tbnid=wAktgjU37kw38M:&ved=0CAgQjRwwAA&url=http://armaggeddon.net/where-to-buy/malaysia-flag/&ei=iI-ZUfaCMIKrrAeSy4HgDw&psig=AFQjCNG63oO20CY-kuPmpHDBG-x9940SQA&ust=1369104648849652

http://www.google.co.th/url?sa=i&rct=j&q=thailand+flag&source=images&cd=&cad=rja&docid=T_OrOapxSEYH_M&tbnid=bYlfzId7S_H_zM:&ved=0CAUQjRw&url=http://unimaps.com/flags-asia/thailand-print2.html&ei=Z4-ZUZCfDIP5rQfRxYHwDA&bvm=bv.46751780,d.bmk&psig=AFQjCNFC6-skA3DtglsfFAC34BBzHbcA8g&ust=1369104600430923



http://www.google.co.th/url?sa=i&source=images&cd=&cad=rja&docid=JNUTYhUMoOSDXM&tbnid=wAktgjU37kw38M:&ved=0CAgQjRwwAA&url=http://armaggeddon.net/where-to-buy/malaysia-flag/&ei=iI-ZUfaCMIKrrAeSy4HgDw&psig=AFQjCNG63oO20CY-kuPmpHDBG-x9940SQA&ust=1369104648849652


Industry Leading F&D Costs

F&D Cost ($/boe) (Including Facilities CapEx) F&D Cost ($/boe) (Excluding Facilities CapEx)

<$600 MM total CapEx (excluding facilities) between Jan’08 - Dec’12

~104 Mmboe added between Jan’08 - Dec’12, net of production

Note: F&D cost calculated as cumulative period CapEx divided by period ending 2P reserves less period beginning 2P reserves plus cumulative period production Ending period for all calculations reflects 3/31/2012

$4.34

$4.66

$4.00

$4.10

$4.20

$4.30

$4.40

$4.50

$4.60

$4.70

$4.80

$4.90

$5.00

3 Yr. F&D 5 Yr. F&D

F&D

Cost

($/b

oe)

$6.33

$6.81

$5.80

$6.00

$6.20

$6.40

$6.60

$6.80

$7.00

3 Yr. F&D 5 Yr. F&D

F&D

Cost

($/b

oe)


Robust 2013 Drilling Program

2013 FCF of $150 MM post CapEx and taxes at $100 realized oil price

2013 CapEx budget of $356 MM

Revised upward for 5 additional frac wells at $7MM each and ~$15MM for facilities damaged in transit

Two MOPUs

1 for Thailand and 1 for Malaysia

Onshore CapEx focused on early development stages of Dong Mun discovery

($US MM) 2013

Drilling & Completions

Offshore Thailand 208

Onshore Thailand 8

Malaysia 42

Facilities 80

Seismic 7

Other 10

Total 356


Exploration Overview

Offshore Exploration Prospective resource inventory of 477.0 mmbbl Additional exploration upside at producing fields

Bua Ban North - 79.5 mmbbl of prospective resources (recoverable) Bua Ban South – 55.9 mmbbl of prospective resources (recoverable)

Songkhla Basin has significant upside Acquired $50MM 3D seismic program in 2012 Survey covers entire Songkhla basin as well as the G5/50 exploration block

Data quality is excellent Final processed volumes delivered in September Fast track volumes have already produced new leads

Onshore Exploration

Dong Mun gas discovery (10 mmboe net to Coastal) Commerciality study has been approved Expected to begin production in 2015


Prospects

Lower Miocene/ Up Oligocene

Eocene

Pre-Tertiary Buried Hill

Lower Oligocene

Highly Prospective Songkhla Basin

Bua Ban North

Songkhla A Extensions

Bua Ban South

Bua Ban Terrace

Songkhla H

Benjarong South (Songkhla N)

Songkhla J (Buried Hill II)

Eocene

Lower Oligocene

Lower Miocene

Fields

Note: Prospective resource volumes are undiscovered resources and represent internal estimates

Songkhla L

Songkhla M


Bua Ban Pilot Fracturing Program

Bua Ban South A-01 and A-03 were successfully fracked in Q113

A five well drilling program is underway in Bua Ban Main

The primary objective of the wells is the Eocene

Two wells have been drilled which encountered thick sections of oil filled Eocene sands

Multi-stage fracs have been successfully carried out on both wells and they will be on production in the next few weeks

With further optimization in a multi-well program, results can improve while bringing fracturing costs down

Substantial resources to be exploited in tight sands in Songkhla basin

Recoverable Oil Assuming 10% Recovery Factor

Songkhla 3.3 MMBO Bua Ban North 3.5 MMBO Bua Ban Main & South 23.2+ MMBO Total: 30.0+ MMBO


Songkhla Basin Miocene Trend

A A’


Songkhla N (Benjarong) Prospects

Lower Miocene M200 Time Structure 20 ms contour interval

Multiple stacked structural targets in: Lower Miocene Upper Oligocene Lower Oligocene Eocene

M200 A

M200 B

M200 C


Songkhla N (Benjarong) Prospects – Dip Line

M050 M075

M200

U Olig marker

M200 A

colored inversion

Tim

e (s

ec)

1000 m

west east

Bua Ban North Field


Future Exploration Well Locations

EIA applications have been submitted for 10 exploration wells

All well locations are covered by new 3D seismic

Application for Bua Ban Production area underway

Bua Ban North Production Area


SPHE-A Indo I Resource

Volumetrics

Min 3.1 BCF

Mid 24.1 BCF

Max 1069 BCF

Sinphuhorm East

Sinphuhorm East


SW NE L15/43 Border

SPHE-1

Sinphuhorm East – New 3D Seismic


L15/43 Border

Pseu

do P

oros

ity %

15

11

8

1

5

3

SW NE Recommended West Well Track

SPHE-1

Sinphuhorm East – Psuedo Porosity Display

Potential Reservoir Rock


Well count : 4 producers/2 injectors

Wells spaced roughly equidistant to maximize reservoir coverage

Well location to balance water coning/gas coning (upon breakout)

Wells completed (perforated across entire sand interval)

Water injectors located close to OWC to maximize pressure support/sweep (1 injector per 2 producers)

Malaysia Development plan


Bua Ban North Style Structure

Central Basin Horst

Terrace Play

West East

LO LST

New 3D Seismic

Potential Strat Play

Three Way Upthrown Traps


Fault Block Lead Miocene Ramp Play

Miocene Graben Play

LO LST

UO LST

North South

New 3D Seismic



Four Way Closure Traps

Upper Oligocene Strat Play

Documents

Corporate Presentation - Coastal Energy · Corporate Presentation September 2013 16 Bua Ban Pilot Fracturing Program Bua Ban South A -01 and A -03 were successfully fracked in Q113