Coastal Energy Announces Update
December 10 2012 - 8:30AM
Coastal Energy Company (the "Company" or "Coastal Energy")
(TSX:CEN) (AIM:CEO), an independent exploration and production
company with assets in Thailand, today provided an update of its
operations.
Second Rig Arrives on Location
The Atwood Manta has arrived on location at the Bua Ban North B
field and is currently rigging up. The Company plans to drill eight
development and appraisal wells at Bua Ban North with the Manta.
Following completion of these eight wells, the Company plans to
mobilize the Manta to the KBM cluster offshore Malaysia in early
Q213 to begin appraisal drilling there.
Pilot Offshore Fracturing Program
The Company has recently tested hydraulic fracturing
("fraccing") with a three stage fracturing program in the Lower
Oligocene in the Bua Ban South A-01 well. All three zones
which were fracced have flowed back oil naturally during cleanup.
The well will be completed with an electric submersible pump (ESP)
for longer term production testing. The fraccing program will now
continue on the Bua Ban South A-03ST#1.
Randy Bartley, President & CEO of Coastal Energy,
commented:
"We continue to be pleased with our operational results and
achievements during the year. We are now looking forward to
accelerating the 2013 development and appraisal drilling campaign
with our second rig. The addition of this second rig will permit us
to grow production while continuing to exploit our substantial
prospect inventory in parallel. The company's production currently
is averaging over 24,000 boepd (22,000 bopd offshore and 2,300
boepd onshore).
"Additionally, the initial results from the pilot fraccing
program are very encouraging. The initial natural flowback rates
during cleanup exceeded 800 bbl/d in aggregate. We expect that we
will be able to further refine the fraccing methodology to be able
to unlock the full resource potential in the lower porosity and
permeability sands in the Songkhla basin."
Amendment to Incentive Stock Option Plan
The Board of Directors has amended the Company's Incentive Stock
Option (ISO) plan to include a provision whereby the Company can,
at its discretion, elect to settle ISO exercises with cash equal to
the fair market value of the shares less the exercise price instead
of issuing shares.
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.com or may be found in documents filed on SEDAR
at www.sedar.com.
The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
CONTACT: Coastal Energy Company
Email: investor@CoastalEnergy.com
+1 (713) 877-6793
Strand Hanson Limited (Nominated Adviser)
+44 (0) 20 7409 3494
Rory Murphy / Andrew Emmott
Macquarie Capital (Europe) Limited (Broker)
+44 (0) 20 3037 2000
Paul Connolly
FirstEnergy Capital LLP (Broker)
Hugh Sanderson / Travis Inlow
+44 (0) 20 7448 0200
Buchanan
Tim Thompson / Ben Romney
+44 (0) 20 7466 5000
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