Press release from GlobeNewswire (a Nasdaq OMX company)
Coastal Energy Announces Operations & Guidance Update and Successful Exploration Results
Monday, June 17, 2013
Coastal Energy Announces Operations & Guidance Update and Successful Exploration Results13:05 EDT Monday, June 17, 2013
HOUSTON, June 17, 2013 (GLOBE NEWSWIRE) -- 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.
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