Coastal Energy Announces Results of First Three Bua Ban Development Wells
HOUSTON, TX--(Marketwire - June 21, 2010) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO), an independent exploration and production company with assets in Thailand, announces the log results of the Bua Ban A-01, A-02 and A-05 development wells in the Gulf of Thailand.
The Bua Ban A-01 well was drilled to a total depth of 7,725 feet true vertical depth (TVD). The well encountered 24 feet of net pay in the Lower Oligocene reservoir with 14% average porosity. The Bua Ban A-02 well was drilled to a total depth of 7,722 feet TVD and encountered 26 feet of net pay in the Lower Oligocene reservoir with 16.5% average porosity. The Bua Ban A-05 well was drilled to a total depth of 7,492 feet TVD and encountered 170 feet of net pay in the Upper & Lower Oligocene reservoirs with average porosity of 15%.
The A-05 well encountered an expanded Lower Oligocene section containing 85 feet of net pay and six distinct oil reservoirs over a gross interval of 832 feet. The previous maximum thickness of Lower Oligocene net pay was 68 feet encountered in the original Bua Ban 1 discovery well. The additional 85 feet is in new pay zones located above known field structures. The top of the reservoir in the A-05 well was encountered at a depth of 7,036 feet and the lowest known oil in the field is located at 7,880 feet, indicating a minimum vertical oil column of 844 feet.
The Company is running completion activities on all three wells and expects to tie in production in the coming days. Following completion of the three wells, the Company will continue drilling up to seven more development wells at Bua Ban prior to the end of the current drilling contract in late September 2010.
Testing operations have begun on Benjarong A-01 and A-02 and are expected to be complete by mid-July.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"The initial log results of the first three Bua Ban wells are very encouraging. The better than expected net pay figures in the Bua Ban A-05 well along with better than expected porosity in all three wells are both positive indications. The presence of the new Upper Oligocene zones seen in the A-05 well could potentially open up a new reservoir for development. Production testing will begin this week."
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This news release is not for dissemination in the United States or through United States newswire services.
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