Press release from GlobeNewswire (a Nasdaq OMX company)
Coastal Energy Announces Successful Drilling of First Horizontal Well at Bua Ban North
Tuesday, November 22, 2011
HOUSTON, Nov. 22, 2011 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production company with assets in Thailand, announces the successful drilling of the Bua Ban North A-10 horizontal well.
The Bua Ban North A-10 was the first horizontal development well drilled at Bua Ban North. The well was drilled into the Miocene reservoir on the western side of the field and encountered 1,185 feet of high quality net pay in the horizontal section. The lateral section was drilled at approximately 3,695 feet TVD, which is 130 feet above the known water level. The A-10 well has been completed with a submersible pump and is ready to begin production as soon as the MOPU installation is complete.
The MOPU has arrived on location and installation is expected to be finalized by the end of the week. The Company is going to spud the Bua Ban North A-11 well next which will be drilled down the high structural fault plane of the western fault block.
Randy Bartley, President and CEO of Coastal Energy, commented:
"We are extremely pleased with the results of our first horizontal Miocene development well. The A-10 well was drilled at a cost of less than $3 million, making horizontal development wells extremely effective for field development. Poor weather conditions and high seas delayed the installation of the MOPU until this week; however, we fully expect first production to be online by the end of November and for all Bua Ban North wells to be online and producing by mid-January."
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.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
CONTACT: Coastal Energy Company Email: investor@CoastalEnergy.com +1 (713) 877-6793 Strand Hanson Limited (Nominated Adviser) Rory Murphy Paul Cocker +44 (0) 20 7409 3494 Macquarie Capital (Europe) Limited (Broker) Paul Connolly Jeffrey Auld +44 (0) 20 3037 2000 FirstEnergy Capital LLP (Broker) Hugh Sanderson Travis Inlow +44 (0) 20 7448 0200 Buchanan Communications Tim Thompson +44 (0) 20 7466 5000