Coastal Energy Announces Operations Update
July 08 2013 - 4:54PM
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 an
operations update.
Malaysia
Following completion of the current drilling program at Bua Ban
North, expected in late July, the Manta drilling rig will mobilize
to Malaysia to begin the development program at the Kapal field.
All requisite permits to commence the Kapal field development have
been received. The mobile offshore production unit ("MOPU")
refurbishment is expected to be complete by September. Therefore,
Coastal is well placed to commence development in Malaysia once the
current program in Thailand is complete.
Bua Ban North
As announced previously, the two horizontal wells which were
drilled and completed with the new swelling packer technology
encountered production issues during the second quarter.
Consequently, the Company elected to recomplete and reperforate
these two wells using more conventional completion techniques.
The Company has recompleted the first of the two wellbores and
the well is now producing approximately 1,500 bopd. The Company
will drill one additional development well at Bua Ban North
and recomplete the other horizontal swelling packer
well before mobilizing the rig to Malaysia.
Production Update
The Company's offshore Thailand production averaged 21,262 bopd
for the second quarter and is currently averaging 21,500
bopd. Onshore production averaged 2,782 boepd, bringing total
Company production to 24,044 boepd for the quarter.
Randy Bartley, President & CEO of Coastal Energy
commented:
"We are making progress in correcting some of the mechanical
issues which were responsible for production declines in the second
quarter. The performance of the swelling packer technology
was disappointing, so we have reverted to our original completion
techniques. We expect the first of the two horizontal wells
at Bua Ban North to be producing at its full potential rate by next
week and the second well to be producing at its full potential rate
by the end of the month.
"The refurbishment of the two MOPUs to be utilized in Malaysia
and Thailand which were damaged in transit is progressing along
schedule. We plan to bring production in Malaysia online
shortly after installation of the MOPU in September and by the end
of the year from the additional MOPU in Thailand."
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: Enquiries:
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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