Coastal Energy in talks with Indonesian company

Following media reports in Canada, Coastal Energy has given credence to reports that it is talks with Indonesia's state-owned oil company Pertamina.

In an announcement made today, Coastal Energy said that "it it continuously evaluates strategic alternatives, including but not limited to the potential sale of the company, to maximize shareholder value".

The Financial Post had earlier reported that it had obtained a letter dated October 2012 it which "Pertamina states it is interested in pursuing Coastal Energy on its own and is prepared to pay a 15% premium to Coastal's share price at or around $23 per share or $2.6-bn."

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Any proposed deal will likely need the support of Texas oil tycoon Oscar Wyatt Jr, who holds a 27.5% stake in Coastal Energy.

A decorated WWII pilot by the age of 21, he made his fortune trading Iraqi oil. He was jailed for a year in 2008 at the age of 83, for conspiring to make illegal payments for Iraqi oil under the United Nations Oil-for-Food programme.

CM