HOUSTON, May 1, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company"
or "Coastal") (TSX:CEN) (AIM:CEO) announces the successful results of the Bua
Ban South A-03ST and A-05 wells.
The Bua Ban South A-05 well was drilled to a depth of 3,525 feet TVD
approximately 1,650 feet to the east of the A-04 well. The well encountered 20
feet of net pay across two Miocene zones with average porosity of 29%, based
on evaluation of downhole logs. The A-05 is downdip from the A-04, and moved
the lowest known oil down by 50 feet in the Miocene. The oil water contact was
not encountered in either zone at this location, and further appraisal wells
will be required to delineate the areal extent of this field. MDT data
indicate that the oil water contact could be materially lower than depths at
which the current wells have penetrated the Miocene interval.
The Bua Ban South A-03ST was drilled to a depth of 9,700 feet TVD. The well
encountered 31 feet of net pay in the Lower Oligocene with 15% porosity, based
on log analysis. The A-03ST is approximately 5,700 feet to the north of the
Bua Ban South A-01 Oligocene discovery. The well encountered 325 feet of
reservoir in the Eocene with 11% porosity. It has been cased and will be
utilized to test a multi-stage fracturing program once production facilities
arrive.
Randy Bartley, President & Chief Executive Officer, commented:
"We are extremely pleased with the results of both of these wells. Now that we
have confirmed the commerciality based on expected recoverable resources of
both the Miocene and Oligocene plays at Bua Ban South we have purchased
production facilities which will arrive in the third quarter of this year. We
are going to return the rig to Bua Ban North and drill horizontal development
wells and water injection wells until the MOPU is on location at Bua Ban
South, after which time we will proceed with further appraisal drilling.
"Our offshore production is holding steady at 21,700 bopd. We expect rates to
return to and exceed previous levels once we begin drilling the additional
development and injection wells at Bua Ban North. We have also received our
permit to drill up to 10 additional wells at Songkhla A and plan to return
there later in the year."
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 Certified Petroleum Geologist and a
Licensed Professional Geoscientist in the state of Texas, have reviewed the
contents of this announcement.