CEN........gazillion barrels of oil locked up in tight Eocene and Lower Oligocene formations, but who's counting- not the market.
HOUSTON, May 22, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX: CEN) (AIM:CEO). The Company has considered various uses for its rapidly accumulating cash, and come to the conclusion that it is best spent on additional exploration, rather than a share buyback or a dividend.
Randy Bartley, Coastal CEO, said, "We had this $70m we didn't quite know what to do with. We thought about paying a dividend, but then thought, who are we kidding... we're a small Canadian oil e&p company, not BP. We thought about doing a share buyback, but we decided that there must be a better use for the money. Then we thought, hey, we've got this basin with a gazillion barrels of oil locked up in tight Eocene and Lower Oligocene formations, and we really ought to find out how much we have, and how much we can extract. We realize we'll need a third rig, plus all the crew and equipment necessary for fracking, and we know we'll have to pay a premium, but we think our shareholders really deserve to know the full extent of the asset that they own." |
