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Coastal Energy Company (the "Company" or
"Coastal") (TSX-V:CEN - News) (AIM: CEO) announces an
update of its operations in the Gulf of Thailand.
Bua
Ban North
The Bua Ban North A-02 exploration well was
drilled to a depth of 8,100 feet into an upthrown
fault block adjacent to the recent discovery in the Bua
Ban North A-01 well. The A-02 well encountered 205 feet of net sand in the
Eocene interval with 16% average porosity. The Eocene interval in the A-02
well appears to have good reservoir characteristics and formation pressure
data obtained from wireline logging (MDT
measurements) indicate an oil gradient. However, log results were
inconclusive and fluid samples were not obtainable. The Company is uncertain
of the commerciality of the well until it can be flow tested. Coastal plans
to perforate and test the Eocene in the A-02 well once suitable testing
facilities are installed.
Following suspension of the A-02 well, the Bua
Ban North A-04 well was spudded and will test the Miocene interval in an upthrown block relative to the productive Miocene sands
encountered in the A-01 well, along with a step-out of the Upper Oligocene
discovery from the A-01 well. The Company plans to drill an additional two to
three appraisal/development wells at Bua Ban North
A following the A-04 well.
Coastal is currently mobilizing a MOPU (mobile offshore production
unit) to the Bua Ban North A location which is
expected to be installed in early May. Following installation of the MOPU,
the Company will begin extended production tests of the wells at Bua Ban North A.
The Bua Ban A-04 and A-07 wells are
continuing to clean up following the single stage fracs
on each well. The A-04 and A-07 wells are flowing at 200 bopd
and 220 bopd, respectively.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"We will be able to determine the commerciality of this new well
following testing, which will begin in early May. Following the completion of
this phase of appraisal and development drilling at Bua
Ban North A, we plan to move the rig to Bua Ban
North B, which is further north and has prospective targets in all three
intervals."
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.
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