Coastal Energy Announces Operational Update
February 24 2010 - 4:30PM
Marketwired
Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN)
(AIM: CEO), an independent exploration and production company with
assets in Thailand, announces an update of its operations in
Thailand.
Songkhla B
The Songkhla B-02 sidetrack reached a total depth of 11,073 feet
(3,375 meters) and encountered 12 feet of net pay in the Lower
Oligocene reservoir, approximately five feet more than was
encountered in the original Songkhla B-02 well. Following logging
it has been confirmed that the interval has a minimum oil column of
approximately 300 feet; however, the estimated reserves are not
sufficient to justify a standalone development. Preliminary
evaluations indicate that this reservoir can be reached with a high
angle well from the Songkhla A structure. The existing Songkhla B
wells are being plugged and abandoned and the rig will be mobilized
to the Benjarong prospect.
Songkhla A
The workover of the Songkhla A-04 was completed and the well is
producing approximately 3,000 bopd. Workover operations have
commenced on Songkhla A-03 to install a larger electric submersible
pump and the well is expected to return to production by the end of
the week. This will be followed by similar operations on Songkhla
A-01. Current production from Songkhla A is approximately 8,000
bopd. Coastal's combined onshore and offshore production is
approximately 10,000 boepd.
Randy Bartley, Chief Executive Officer of Coastal Energy,
commented:
"The results of the Songkhla B-02 sidetrack confirm the
existence of a hydrocarbon trap with good porosity and
permeability. Although too thin for a standalone development,
drilling from the Songkhla A structure could make this discovery
commercial. We will evaluate this option at a later date when we
return to Songkhla A for future development work. We expect to spud
our first Benjarong exploration well within the next two weeks.
"Workover operations at Songkhla A are progressing as planned
and we have restored production from the A-04 well. We have almost
completed the pump replacement on the A-03 well and will then begin
the workover of the A-01."
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
Licensed Professional Geoscientist and a Certified Petroleum
Geologist in the state of Texas, have reviewed the contents of this
announcement.
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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
This news release is not for dissemination in the United States
or through United States newswire services.
Enquiries: Coastal Energy Company Randy L. Bartley Chief
Executive Officer +1 713 877 6705 William C. Phelps Chief Financial
Officer +1 713 877 6727 Email: Email Contact Strand Hanson Limited
(Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy Paul Cocker
Thomas Weisel Partners (Broker) +44 (0) 20 7877 4300 Paul Colucci
Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037 2000
Ben Colegrave Paul Connolly Buchanan Communications Tim Thompson
+44 (0) 20 7466 5000 Catherine Breen Katharine Sutton
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