Coastal Energy Announces Discovery at Bua Ban North & Operations Update
March 09 2011 - 5:01PM
Marketwired
Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN)
(AIM: CEO) announces an update of its operations in the Gulf of
Thailand.
Bua Ban North
The Bua Ban North A-01 exploration well encountered 32 feet of
net pay in the Miocene interval and 27 feet of net pay in the Upper
Oligocene interval, both with 25% average porosity. The Eocene
interval was encountered approximately 700 feet deeper than
originally prognosed and contained 70 feet of oil bearing sands
with 14% porosity; however, given the low porosity and permeability
it is not expected to flow naturally. The Company is currently
mobilizing a MOPU to the location and plans to begin flow testing
the well once facilities installation is complete. The Bua Ban
North A-02 well has been spudded and will test Miocene, Oligocene,
and Eocene targets similar to those in the A-01 well in an upthrown
fault block.
Songkhla
The sidetrack of the Songkhla A-07 well successfully appraised
the recent discovery made by the A-09 well. The sidetrack
encountered 45 feet of net pay in the Lower Oligocene at 18%
porosity and 33 feet of net pay in the Eocene at 17% porosity. The
well was completed and flow tested at 800 bopd.
Production from the previously announced A-12 well has been tied
in and is flowing at approximately 1,600 bopd. Additionally, the
A-11 well is continuing to produce approximately 150 bopd from the
Eocene interval. The Company plans to perforate the 44 feet of pay
in the Oligocene interval in the A-11 well with a workover unit and
then tie in Oligocene production.
Appraisal drilling at Songkhla has confirmed that the recent
discoveries contain approximately 80 million barrels of oil in
place(1).
Current production at Songkhla is approximately 8,500 bopd.
Bua Ban
The fracture stimulations of the Bua Ban A-04 and A-07 wells
have been completed. The Company has installed a submersible pump
in the A-07 well and the well is cleaning up. The A-07 well is
producing frac water at a rate of 450 bbl/d with 60% oil cut. A
submersible pump is currently being installed on the A-04 well.
Prior to the well being shut in for pump installation, it was
flowing naturally with a 50% oil cut.
Current production at Bua Ban, excluding the A-04 and A-07, is
approximately 2,000 bopd with four wells producing.
Benjarong The fracture stimulation of the
Benjarong A-01 well is complete and the well has been producing 200
bbl/d of fluid with a 95% oil cut using coiled tubing and nitrogen
lift. The Benjarong A-02 well has been acidized and appears to be
non-productive.
Total offshore production is approximately 10,500 bopd and
onshore production is approximately 2,000 boepd.
Randy Bartley, Chief Executive Officer of Coastal Energy,
commented:
"We are very pleased with the results of the first well at Bua
Ban North. We have confirmed the extension of the petroleum system
to the northern part of the basin. The discovery in the Miocene
gives further evidence of a larger Miocene trend in the Songkhla
basin. The discovery of productive Upper Oligocene sands also opens
up a new potential zone in the basin for exploration and
development.
"Although the sands in the Eocene interval are tight in the A-01
well, they were encountered deeper than we anticipated and have
porosity and permeability characteristics consistent with what we
would expect at that depth. We will be drilling an exploration well
in an area where the Eocene is believed to be significantly
shallower and exhibit higher porosity and permeability.
"Production at Bua Ban has been declining and we are evaluating
methods of increasing the flow rates from the reservoir. We are
adding additional water supply to increase injection and improve
reservoir performance as well as evaluating development of the
reservoir with horizontal wells and fracture stimulation."
(1) Company estimate of the volume of oil in place. Note that
only a proportion of this volume will be recoverable.
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 Contact +1 (713)
877-6793 Strand Hanson Limited (Nominated Adviser) Rory
Murphy Paul Cocker +44 (0) 20 7409 3494 Macquarie Capital
(Europe) Limited (Broker) Ben Colegrave Paul Connolly +44 (0)
20 3037 2000 Buchanan Communications Tim Thompson Chris
McMahon Ben Romney +44 (0) 20 7466 5000
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