Coastal Energy Announces Drilling Update
January 10 2011 - 6:04AM
Marketwired
Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN)
(AIM: CEO) announces an update of its operations in the Gulf of
Thailand.
The sidetrack of the Songkhla A-12 well has made a new discovery
east of the recent discovery made by the Songkhla A-09 well. The
A-12 encountered pay zones in both the Oligocene and Eocene
reservoirs. Analysis of the data indicates both reservoirs are
separated from the Songkhla Main reservoir by a 400 foot fault. The
A-12 encountered 105 feet of net pay in the Oligocene with 20%
porosity and 43 feet of net pay in the Eocene with 19% porosity.
The Company's oil in place estimate for this newly discovered
Oligocene reservoir is over 20 million barrels. The Company expects
to have this well completed within the next week.
The previously announced A-11 well, which encountered 69 feet of
net pay in the Eocene reservoir, is currently being flow tested.
Currently only the Eocene is being tested and it is producing
approximately 300 bopd. The A-11 also encountered 44 feet of net
pay in the Oligocene reservoir with 18% porosity. The Company plans
to commingle production from the Oligocene reservoir later this
month once the flow test of the Eocene reservoir is completed.
Following completion of the A-12 well, the Company is planning
to sidetrack the previously drilled Songkhla A-07 well targeting
the reservoir discovered by the Songkhla A-09 well.
The fracture stimulation of the Eocene reservoir in the Bua Ban
A-04 well is expected to commence the week of January 23rd.
Randy Bartley, Chief Executive Officer of Coastal Energy,
commented:
"Drilling at Songkhla has continued to produce successful
results. We now have three newly discovered reservoirs apart from
the main Songkhla reservoir. Given the encouraging results, we have
decided to drill one further development well to bring more
production online before moving the rig. We will continue
evaluating future appraisal and development well locations and plan
to return to Songkhla later this year.
"Once drilling is completed at Songkhla, we will move to our
high impact exploration targets at Bua Ban North. We plan to issue
the next operations update at the end of the month."
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 Email: Email
Contact +1 (713) 877-6793 Strand Hanson Limited (Nominated
Adviser) +44 (0) 20 7409 3494 Rory Murphy Paul Cocker Stifel
Nicolas Weisel (Broker) +44 (0) 20 3205 3615 Paul Colucci
Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037
2000 Ben Colegrave Paul Connolly Buchanan Communications +44
(0) 20 7466 5000 Tim Thompson Katharine Sutton Ben Romney
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