Coastal Energy reports successful exploration oil well offshore Thailand

Offshore staff

HOUSTON –Coastal Energy Co. (AIM: CEO) reports a score with its first exploration well at Songkhla H offshore Thailand. At Bua Ban North B-06 and B-08, production testing saw 2,000 b/d of oil from each.

The Songkhla H-01 well was reached 9,256 ft (2,821 m) TVD and encountered 32 ft (9.75 m) of net pay with 20% porosity in the Oligocene interval. A drillstem test produced 1,000 b/d of 29º API oil with minimal initial pressure drawdown. Coastal says the H-01 well has the potential to produce in excess of 3,000 b/d an electric submersible pump. An appraisal well is under way to delineate the reservoir.

The Bua Ban North B-06 and B-08 wells are completed using ESPs and are producing approximately 2,000 b/d of oil each from the Miocene. Flow rates will be restricted to minimize drawdown. B-06 began producing on July 20 and B-08 on July 27. The company currently is completing the B-01 in the Oligocene formation.

07/28/2011