RE: concerned??Well here is the news release about hiring the drill rig. It sounds as if with their initial success they are not excersizing their option for the additional 3 months. I think in today's environment it is prudent to always rethink capital expenditures. In the past these kind of wells from CEN would have sent the stock rocketing higher followed by a nice PP to cash them up and allow for continued development of the field. Today the stock yawns and the stock may even fall LOL. To conserve some cash and avoid doing a PP here would be beneficial long term. The thing is by year end they will be producing a lot of oil with many drilling opportunities for the future. I can see a lot of companies scale back on CAPEX so the cost of hiring rigs next year may come down some as well. Time to sit and let some nice cash flow get the books looking completely solid then extend lines of credit etc. to comtinue drilling. You know do things the way they were done years ago.
Coastal Energy hires Deep Drilling rig for Songkhla
2008-09-10 07:37 MT - News Release
Mr. Randy Bartley reports
COASTAL ENERGY PROVIDES OPERATIONS UPDATE
Coastal Energy Company has provided an update on its operations offshore Thailand.
Thecompany's wholly owned subsidiary, NuCoastal (Thailand) Ltd., hasfinalized its previously announced contract with Deep Drilling 7 Pte.Ltd. for a charter of the Deep Driller 7. The contract is for aninitial term of three months and is extendable up to an additionalthree months. The rig is expected to begin mobilizing to the Songkhlalocation in mid-September, 2008.
Randy Bartley, chief executiveofficer of Coastal Energy, commented: "The company has governmentapproval for extended production testing while drilling at our Songkhlafield development. We expect to be drilling by late September, withcompletion and testing of the first Songkhla well by mid-October. Wewill continue to test and produce our first well to test facilitieswhile continuing simultaneous drilling operations. This early extendedtesting and production will allow the company to establish productionand cash flow from offshore properties ahead of final environmentalimpact assessment approval and platform and facilities installation."