News:First Platform Production at Songkhla Field
Coastal Energy Announces First Platform Production at Songkhla Field
Tue Mar 3, 9:30 AM
HOUSTON, March 3 /CNW/ - Coastal Energy Company ("the Company" or "Coastal Energy") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in Southeast Asia, announces that it resumed production at its Songkhla field in the Gulf of Thailand from a Mobile Offshore Production Unit ("MOPU") on 23 February, 2009. As of 2 March, 2009, combined production from the Songkhla A-01 and A-03 wells was approximately 11,000 bbl/d utilizing electric submersibles pumps ("ESPs"). The Company mobilized and installed an alternate MOPU after its originally contracted MOPU sustained weather damage during mobilization in January 2009. The Company plans to tie-in production from the Songkhla A-07 exploration well as it finalizes facilities installation. The first crude oil sale is expected in mid-March.
Randy Bartley, President and Chief Executive Officer of Coastal commented:
"We are pleased to resume production from Songkhla. Although weather delays were an issue in mid-January, our operations team was very successful in locating an alternate vessel and installing it on location ahead of schedule. The Songkhla wells' production rates are exceeding our original estimates. Our combined onshore and offshore production is now approximately 12,800 barrels of oil equivalent per day. We currently plan to build our liquidity position and commence another phase of drilling later in 2009. However, we have no related capital expenditures committed at this time."
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.
Notes to Editors - Coastal Energy is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand - The Company specialises in identifying and developing under-exploited or "orphaned" assets. Management has proven experience at identifying and unlocking value from overlooked, abandoned, low risk assets with proven hydrocarbon potential - This strategy has enabled the Company to assemble an asset base in Thailand that includes production of approximately 11.5 mmcf/d of gas under long term contract and offshore oil fields currently under development - Production growth over the next 12 -18 months is expected to be substantial. Proven and probable reserves are 45.5 million barrels oil equivalent in the Company's reserve report prepared by Huddleston & Co. dated 31 December, 2007* - The Company's current assets include: - Offshore Thailand - 100% of block G5/43 - two oil fields currently under development with several other similar appraisal and exploration opportunities. Production from the Songkhla field is currently averaging 11,000 bbl/d. - 100% of block G5/50 - within the boundaries of block G5/43 in the Ko Kra basin - Onshore Thailand - 12.6% net interest in the Phu Horm gas field, which had average daily production of 94 mmcf/d for the quarter ended September 30, 2008.
Additional information, including the Company's complete competent person's may be found on the Company's website, www.CoastalEnergy.com or may be found in documents filed on SEDAR, www.sedar.com.