Coastal Energy Company Results of Songkhla A-13 Well & Operations Update (8681O)
October 17 2012 - 2:00AM
UK Regulatory
TIDMCEO
RNS Number : 8681O
Coastal Energy Company
17 October 2012
TSX: CEN October 17, 2012
AIM: CEO
Coastal Energy Announces Successful Results of Songkhla A-13
Well and Operations Update
Coastal Energy Company (the "Company" or "Coastal") (TSX: CEN)
(AIM: CEO) announces the results of the Songkhla A-13 well and an
operations update.
Songkhla A-13
The Songkhla A-13 well was drilled to a depth of 8,000 feet TVD
into an untested fault block in the northeast area of the Songkhla
field. The well encountered 67 feet of Lower Oligocene net pay with
18% porosity. The Company is currently evaluating an updip location
for a confirmation well. In the meantime a water injection well in
the A-10 fault block will be drilled.
Production Facilities
Bua Ban North
The conversion of the recently acquired Richmond mobile offshore
production unit (MOPU) has been completed and it is now capable of
handling 55,000 bbl/d. Due to the increased fluid handling
capacity, the Company has replaced the Bua Ban North B MOPU with
the Richmond. The replacement is complete and production is in the
process of coming back online at Bua Ban North B.
Bua Ban South
The Company also completed its acquisition of the Bua Ban North
B MOPU and has re- installed it at Bua Ban South. The Bua Ban South
A-05 is presently being completed with the hydraulic workover unit
(HWU). The HWU will then commence the hydraulic fracturing program
for the Lower Oligocene and Eocene formations in the A-01 and A-03
wells is scheduled to begin in late October.
3D Seismic Acquisition
The acquisition of 3D seismic over the entire Songkhla basin is
60% complete. The Company expects delivery of the processed data in
Q113.
Credit Facility
The Company has upsized and amended its senior secured revolving
credit facility with BNP Paribas and Commonwealth Bank of
Australia. The facility has been increased to $200MM and includes
two additional banks, the Standard Bank and Standard Chartered
Bank.
Randy Bartley, President and Chief Executive Officer,
commented:
"We are very pleased to have encountered yet another hydrocarbon
bearing fault block within the Songkhla field. We plan to drill a
well higher up structure to add additional pay thickness. We are in
the process of integrating the data gathered in the well with our
seismic to identify the best potential updip location.
"The completion of the Richmond project was a key hurdle to
increasing capacity at Bua Ban North and being able to implement
the full field development plan. We expect to begin drilling
additional development wells at Bua Ban North in early 2013. We are
also now in position to bring production online at Bua Ban South
and proceed with the frac program. We plan on performing a 3-stage
frac on the Lower Oligocene in the A-01 well and a six-stage frac
on the Lower Oligocene and Eocene in the A-03 well. We expect to
have results from these two programs by late November or early
December."
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.
Additional information, including the Company's complete
competent person's report may be found on the Company's website at
www.CoastalEnergy.comor 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.
Enquiries:
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
Steve Baldwin / Jeffrey Auld
FirstEnergy Capital LLP (Broker) +44 (0) 20 7448 0200
Hugh Sanderson / Travis Inlow
Buchanan +44 (0) 20 7466 5000
Tim Thompson / Ben Romney
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDMMMGKNRGZZG
Coastal Eng (LSE:CEO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Coastal Eng (LSE:CEO)
Historical Stock Chart
From Jul 2023 to Jul 2024