Press release from GlobeNewswire (a Nasdaq OMX company)
Coastal Energy Announces Operations Update
Monday, July 08, 2013
Coastal Energy Announces Operations Update13:54 EDT Monday, July 08, 2013
HOUSTON, July 8, 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 an operations update.
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.
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