Coastal Energy Announces Operations & Guidance Update and Successful Exploration Results
June 17 2013 - 4:05PM
Coastal Energy Company (the "Company" or "Coastal Energy")
(TSX:CEN) (AIM:CEO), an independent exploration and production
company with assets in Southeast Asia, today announces the results
of the Bua Ban North B-17 and Ko Kra A-01 exploration wells and an
update to its 2013 guidance.
Bua Ban North
The Bua Ban North B-17 well was drilled to a depth of 3,800 feet
TVDSS. The well encountered 34 feet of net pay in the M100 Miocene
reservoir with average porosity of 23%. The B-17 well was drilled
into fault block north of the existing Bua Ban North reserve
base. This fault block was previously carried in the Company's
internal prospective resource inventory. The well also
encountered reservoir quality sands with significant oil shows in
some of the deeper Miocene intervals which were penetrated off
structure due to the high angle of the wellbore.
Block G5/50 (Ko Kra)
The Ko Kra A-01 well was drilled to a total depth of 8,330 feet
TVDSS in Block G5/50, north of the Company's existing asset base in
Block G5/43. The well encountered a section of Tertiary rock
similar to what is present and productive in the Songkhla
basin. Significant gas shows encountered during drilling are
indicative of an active hydrocarbon system in the basin. Core
samples were taken for further analysis. No commercial
hydrocarbon sands were encountered and the well was plugged and
abandoned.
Guidance Update
The Company expects 2013 full year average production to average
between 24,000 boe/d and 26,500 boe/d, with an exit rate ranging
from 26,500 boe/d to 33,000 boe/d. The Company's lower full
year average guidance reflects the operational delays associated
with the damage which occurred to the two MOPUs during transit as
well as the operational and mechanical delays at Bua Ban North
& Bua Ban South in the first quarter. Total company
production year to date through May 31st has averaged approximately
23,700 boe/d.
Randy Bartley, President & CEO of Coastal Energy,
commented:
"The new discovery at Bua Ban North is encouraging. This is
the first test of one of the multiple fault blocks surrounding the
Bua Ban North field which contain 67.5 mmbbl of unrisked
recoverable prospective resources. Following the successful
results of this well, we expect further additions to our existing
reserve base at Bua Ban North. The oil shows in the deeper
Miocene sands are also encouraging and will give us additional
prospectivity in these horizons updip on the structure.
"Although no commercial hydrocarbons were encountered in the Ko
Kra A-01 well, we are encouraged by the results. This was the
first well drilled in the basin using modern 3D seismic and we saw
many characteristics of an active hydrocarbon
system. Further analysis of the data from
this well, will give us a better understanding of the petroleum
system and help us generate additional prospects in the Ko Kra
basin.
"One of the drilling rigs will drill an additional well at Bua
Ban North before mobilizing to Malaysia, while the other has been
mobilized to the Bua Ban Main platform to drill four to five wells
into the tighter Lower Oligocene and Eocene sands which will be
hydraulically fracked in the third quarter.
"Coastal has experienced several operational delays in the first
half of 2013 which have put us behind schedule in our development
plans both in Thailand and Malaysia. Now that we have fully
assessed these particular issues and the impact on our future
development plans, we are in a better position to revise our
outlook for the remainder of the year. Although timing has
slipped for the project in Malaysia and the development of Songkhla
H, we are well positioned going forward to execute our original
plan. We now expect first oil from the Kapal field in Malaysia
in late Q3 2013 and are targeting first oil at Songkhla H late in
the fourth quarter of this year."
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.
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
Steve Baldwin/Andrew Jones
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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