Press release from Marketwire
Coastal Energy Announces Successful Discovery at Songkhla H and Production Testing Results From Two Wells at Bua Ban North B
Thursday, July 28, 2011
HOUSTON, TX--(Marketwire - July 28, 2011) - Coastal Energy Company (the "Company" or "Coastal") (TSX: CEN) (AIM: CEO) announces the successful results of the first exploration well drilled at Songkhla H and the results of initial production testing on the Bua Ban North B-06 and B-08 wells.
The Songkhla H-01 well was drilled to a total depth of 9,256 feet TVD and encountered 32 feet of net pay with 20 percent porosity in the Oligocene interval. A drill stem test was performed and the well produced 1,000 bopd with minimal initial pressure drawdown of the reservoir. The crude has an API gravity of 29 degrees. The H-01 well has the potential to produce in excess of 3,000 bopd using an electric submersible pump ("ESP"). The Company has spudded an appraisal well to delineate the reservoir.
The Bua Ban North B-06 and B-08 wells have been completed using ESPs and are producing approximately 2,000 bopd each from the Miocene interval. Flow rates will be restricted to these levels to minimize drawdown on the formation. The crude has API gravity of 29 degrees and is of quality consistent with current production. The Company is currently completing the B-01 well in the Oligocene formation. The B-06 well began producing on July 20th and the B-08 well began producing on July 27th.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"We are extremely pleased with the results of both the Songkhla H-01 and the production testing at Bua Ban North B. The Songkhla H-01 well was drilled in the center of the basin where sand risk is the highest. Encountering sand of this quality in the basin center is very encouraging and opens up significant additional exploration potential.
"The initial flow rates from the B-06 and B-08 wells are performing above our expectations. We are proud to announce that we have been able to bring the Bua Ban North B field on production less than three months after the initial discovery well was drilled."
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 Licensed Professional Geoscientist and a Certified Petroleum Geologist 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.
These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.
This news release is not for dissemination in the United States or through United States newswire services
FOR FURTHER INFORMATION PLEASE CONTACT:
Coastal Energy Company Enquiries: Email: investor@CoastalEnergy.com +1 (713) 877-6793
+44 (0) 20 7409 3494 Strand Hanson Limited (Nominated Adviser) Rory Murphy Paul Cocker
+44 (0) 20 3037 2000 Macquarie Capital (Europe) Limited (Broker) Ben Colegrave Paul Connolly
+44 (0) 20 7448 0200 FirstEnergy Capital LLP (Broker) Hugh Sanderson Travis Inlow
+44 (0) 20 7466 5000 Buchanan Communications Tim Thompson Ben Romney