Coastal Energy: All Bua Ban North A Wells Online in February (Thailand)

Coastal Energy Company, an independent exploration and production company with assets in Thailand, announces the successful production testing results from the first two Bua Ban North A wells and the results of the Bua Ban North B-10 and B-12.

The first Bua Ban North A wells have been completed and are undergoing production testing. The Bua Ban North A-10 well, which is the first horizontal development well in the field, came fully online on December 28 and has been steadily producing approximately 3,000 bopd. The Bua Ban North A-06 well has been completed and is producing approximately 1,000 bopd. The Company expects to have the remaining eight Bua Ban North A wells online by the middle of February.

The Bua Ban North B-10 well was drilled as a step-out well into a previously untested central graben fault block. The well was drilled to a depth of 5,000 feet TVD and encountered 90 feet of net pay in the Miocene reservoir with 27% average porosity. The well encountered oil in both the M100 and M500 sands.

The Bua Ban North B-12 well was drilled as an appraisal well on the western flank of the northern structure of the Bua Ban North field. The well was drilled to a depth of 4,000 feet TVD and encountered 75 feet of net pay in the primary M100 Miocene sand with 26 percent average porosity. An additional 5 feet of net pay was encountered in a shallow zone in the Middle Miocene.

Randy Bartley, President and CEO of Coastal Energy, commented:

“The recent results from both drilling and production testing have exceeded our expectations. The B-10 well has confirmed that the M100 and M500 sands extend into the previously untested central area of the field while the B-12 well encountered thicker than expected sands on the highest structural position drilled thus far in the northern part of the field. We are excited to find Middle Miocene pay for the first time. This, along with the M75 zone discovered with the B-09 well, provide additional targets for future exploration within the field area.

“We are pleased with the initial testing results from our first horizontal well and we are currently planning two additional horizontal development wells at Bua Ban North B based on these successful results. Following the completion of the three most recent wells and the additional drilling at Bua Ban North, the rig will be moved to Bua Ban South to begin exploration of this highly prospective asset.”

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Offshore Energy Today Staff, January 5, 2012; Image: Coastal Energy