Coastal Energy Company
04.01.2012 22:05
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HOUSTON, 2012-01-04 22:05 CET (GLOBE NEWSWIRE) --
Coastal Energy Company (the 'Company' or 'Coastal Energy') (TSX:CEN) (AIM:CEO),
an independent exploration and production company with assets in Thailand,
announces the successful production testing results from the first two Bua Ban
North A wells and the results of the Bua Ban North B-10 and B-12.
Offshore
The first Bua Ban North A wells have been completed and are undergoing
production testing. The Bua Ban North A-10 well, which is the first horizontal
development well in the field, came fully online on December 28 and has been
steadily producing approximately 3,000 bopd. The Bua Ban North A-06 well has
been completed and is producing approximately 1,000 bopd. The Company expects
to have the remaining eight Bua Ban North A wells online by the middle of
February.
The Bua Ban North B-10 well was drilled as a step-out well into a previously
untested central graben fault block. The well was drilled to a depth of 5,000
feet TVD and encountered 90 feet of net pay in the Miocene reservoir with 27%
average porosity. The well encountered oil in both the M100 and M500 sands.
The Bua Ban North B-12 well was drilled as an appraisal well on the western
flank of the northern structure of the Bua Ban North field. The well was
drilled to a depth of 4,000 feet TVD and encountered 75 feet of net pay in the
primary M100 Miocene sand with 26 percent average porosity. An additional 5
feet of net pay was encountered in a shallow zone in the Middle Miocene.
The Company has extended its crude oil sales agreement for an additional two
years and has secured a discount of $1.70 per bbl to the Dubai benchmark crude
price, which is at a premium to the previous discount to Dubai of $4.25 per
bbl.
Onshore
APICO, the operator of the L27/43 concession onshore Thailand (Coastal net
36.1% working interest), has begun a sidetrack operation on the previously
drilled Dong Mun 3 well. The Dong Mun 3 well encountered gas shows in 2008;
however, it was not tested due to lack of suitable testing equipment. The
decision to sidetrack is based upon newly obtained 3D seismic data, the
interpretation of which indicates potential areas of higher porosity and
permeability. APICO is also evaluating the drilling of an additional well to
test a large structure on the eastern side of L27/43. The drilling of this well
is contingent upon the results of the immediate offset well test on the
adjacent L16/50 concession. Test results are expected in the coming weeks.
Randy Bartley, President and CEO of Coastal Energy, commented:
'The recent results from both drilling and production testing have exceeded our
expectations. The B-10 well has confirmed that the M100 and M500 sands extend
into the previously untested central area of the field while the B-12 well
encountered thicker than expected sands on the highest structural position
drilled thus far in the northern part of the field. We are excited to find
Middle Miocene pay for the first time. This, along with the M75 zone discovered
with the B-09 well, provide additional targets for future exploration within
the field area.
'We are pleased with the initial testing results from our first horizontal well
and we are currently planning two additional horizontal development wells at
Bua Ban North B based on these successful results. Following the completion of
the three most recent wells and the additional drilling at Bua Ban North, the
rig will be moved to Bua Ban South to begin exploration of this highly
prospective asset.'
Randy Bartley, President and Chief Executive Officer of the Company and a
member of the Society of Petroleum Engineering and Jerry Moon, Vice President,
Technical & Business Development, a member of the American Association of
Petroleum Geologists, a Certified Petroleum Geologist and a Licensed
Professional Geoscientist in the state of Texas, have reviewed the contents of
this announcement.
The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
These securities have not been registered under United States Securities Act of
1933 (the 'US Securities Act') or the securities laws of any state and may not
be offered or sold in the United States or to US persons (as defined in
Regulation S under the US Securities Act) unless an exemption from registration
is available.
CONTACT: Coastal Energy Company
Email: investor@CoastalEnergy.com
+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
Paul Connolly
Jeffrey Auld
FirstEnergy Capital LLP (Broker)
+44 (0) 20 7448 0200
Hugh Sanderson
Travis Inlow
Buchanan Communications
+44 (0) 20 7466 5000
Tim Thompson
Ben Romney
News Source: NASDAQ OMX
04.01.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Coastal Energy Company
Cayman Islands
Phone:
Fax:
E-mail:
Internet:
ISIN: KYG224041189
WKN:
End of Announcement DGAP News-Service
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DGAP-News: Coastal Energy Announces Initial Production Testing Results of Bua Ban North A Wells, Drilling Results at Bua Ban North B & Operations Update
| Source: EQS Group AG