HOUSTON, June 11, 2013 (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 June 14, 2013 and terminate on the earliest of the purchase of 5,680,241 common shares, Coastal providing a notice of termination, and June 13, 2014. 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 5,680,241 common shares over the course of the next twelve months, being 5% of its issued and outstanding common shares as of May 31, 2013. No more than the greater of 25% of the average daily trading volume of Coastal's listed shares for the period December 1, 2012 – May 31, 2013 (54,542 shares per day) or 1,000 shares will be purchased on the same trading day. As of June 5, 2013, Coastal had 113,604,820 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.
Over the past twelve months, 1,295,450 shares have been purchased, with an average price of C$14.46.
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 Credit Suisse Securities (Canada), Inc. 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 and the AIM rules.
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 www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com.
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.