More good news....It's nice to see a long term hold like this one slowly and steadily growing their resource.....
Coastal Energy Company announces an update of its operations in the Gulf of Thailand.
The sidetrack of the Songkhla A-12 well has made a new discovery east of the recent discovery made by the Songkhla A-09 well. The A-12 encountered pay zones in both the Oligocene and Eocene reservoirs. Analysis of the data indicates both reservoirs are separated from the Songkhla Main reservoir by a 400 foot fault. The A-12 encountered 105 feet of net pay in the Oligocene with 20% porosity and 43 feet of net pay in the Eocene with 19% porosity. The Company's oil in place estimate for this newly discovered Oligocene reservoir is over 20 million barrels. The Company expects to have this well completed within the next week.
The previously announced A-11 well, which encountered 69 feet of net pay in the Eocene reservoir, is currently being flow tested. Currently only the Eocene is being tested and it is producing approximately 300 bopd. The A-11 also encountered 44 feet of net pay in the Oligocene reservoir with 18% porosity. The Company plans to commingle production from the Oligocene reservoir later this month once the flow test of the Eocene reservoir is completed.
Following completion of the A-12 well, the Company is planning to sidetrack the previously drilled Songkhla A-07 well targeting the reservoir discovered by the Songkhla A-09 well.
The fracture stimulation of the Eocene reservoir in the Bua Ban A-04 well is expected to commence the week of January 23rd.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"Drilling at Songkhla has continued to produce successful results. We now have three newly discovered reservoirs apart from the main Songkhla reservoir. Given the encouraging results, we have decided to drill one further development well to bring more production online before moving the rig. We will continue evaluating future appraisal and development well locations and plan to return to Songkhla later this year.
"Once drilling is completed at Songkhla, we will move to our high impact exploration targets at Bua Ban North. We plan to issue the next operations update at the end of the month."