HOUSTON, USA – Coastal Energy Company (the “Company” or “Coastal”) (TSX: CEN) (AIM: CEO) announces the successful results of the Bua Ban South A-03ST and A-05 wells.
The Bua Ban South A-05 well was drilled to a depth of 3,525 feet TVD approximately 1,650 feet to the east of the A-04 well. The well encountered 20 feet of net pay across two Miocene zones with average porosity of 29%, based on evaluation of downhole logs. The A-05 is downdip from the A-04, and moved the lowest known oil down by 50 feet in the Miocene. The oil water contact was not encountered in either zone at this location, and further appraisal wells will be required to delineate the areal extent of this field. MDT data indicate that the oil water contact could be materially lower than depths at which the current wells have penetrated the Miocene interval.
The Bua Ban South A-03ST was drilled to a depth of 9,700 feet TVD. The well encountered 31 feet of net pay in the Lower Oligocene with 15% porosity, based on log analysis. The A-03ST is approximately 5,700 feet to the north of the Bua Ban South A-01 Oligocene discovery. The well encountered 325 feet of reservoir in the Eocene with 11% porosity. It has been cased and will be utilized to test a multi-stage fracturing program once production facilities arrive.
Randy Bartley, President & Chief Executive Officer, commented:
"We are extremely pleased with the results of both of these wells. Now that we have confirmed the commerciality based on expected recoverable resources of both the Miocene and Oligocene plays at Bua Ban South we have purchased production facilities which will arrive in the third quarter of this year. We are going to return the rig to Bua Ban North and drill horizontal development wells and water injection wells until the MOPU is on location at Bua Ban South, after which time we will proceed with further appraisal drilling.
“Our offshore production is holding steady at 21,700 bopd. We expect rates to return to and exceed previous levels once we begin drilling the additional development and injection wells at Bua Ban North. We have also received our permit to drill up to 10 additional wells at Songkhla A and plan to return there later in the year.”
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.
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.
