HOUSTON, Oct. 16, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX:CEN) (AIM:CEO) announces the results of the Songkhla A-13 well and an operations update.
The Songkhla A-13 well was drilled to a depth of 8,000 feet TVD into an untested fault block in the northeast area of the Songkhla field. The well encountered 67 feet of Lower Oligocene net pay with 18% porosity. The Company is currently evaluating an updip location for a confirmation well. In the meantime a water injection well in the A-10 fault block will be drilled.
Bua Ban North
The conversion of the recently acquired Richmond mobile offshore production unit (MOPU) has been completed and it is now capable of handling 55,000 bbl/d. Due to the increased fluid handling capacity, the Company has replaced the Bua Ban North B MOPU with the Richmond. The replacement is complete and production is in the process of coming back online at Bua Ban North B.
Bua Ban South
The Company also completed its acquisition of the Bua Ban North B MOPU and has re-installed it at Bua Ban South. The Bua Ban South A-05 is presently being completed with the hydraulic workover unit (HWU). The HWU will then commence the hydraulic fracturing program for the Lower Oligocene and Eocene formations in the A-01 and A-03 wells is scheduled to begin in late October.
3D Seismic Acquisition
The acquisition of 3D seismic over the entire Songkhla basin is 60% complete. The Company expects delivery of the processed data in Q113.
The Company has upsized and amended its senior secured revolving credit facility with BNP Paribas and Commonwealth Bank of Australia. The facility has been increased to $200MM and includes two additional banks, the Standard Bank and Standard Chartered Bank.
Randy Bartley, President and Chief Executive Officer, commented:
"We are very pleased to have encountered yet another hydrocarbon bearing fault block within the Songkhla field. We plan to drill a well higher up structure to add additional pay thickness. We are in the process of integrating the data gathered in the well with our seismic to identify the best potential updip location.
"The completion of the Richmond project was a key hurdle to increasing capacity at Bua Ban North and being able to implement the full field development plan. We expect to begin drilling additional development wells at Bua Ban North in early 2013. We are also now in position to bring production online at Bua Ban South and proceed with the frac program. We plan on performing a 3-stage frac on the Lower Oligocene in the A-01 well and a six-stage frac on the Lower Oligocene and Eocene in the A-03 well. We expect to have results from these two programs by late November or early December."
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.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
Additional information, including the Company's complete competent person's report may be found on the Company's website at www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com.
This statement contains 'forward-looking statements' as defined by the applicable securities legislation. Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas price forecasts and similar matters are based on current data and information and should be viewed as forward-looking statements. Such statements are not guarantees of future results and are subject to risks and uncertainties beyond Coastal Energy's control. Actual results may differ substantially from the forward-looking statements.
CONTACT: Enquiries: Coastal Energy Company Email: investor@CoastalEnergy.com +1 (713) 877-6793 Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy / Paul Cocker Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037 2000 Steve Baldwin / Jeffrey Auld FirstEnergy Capital LLP (Broker) Hugh Sanderson / Travis Inlow +44 (0) 20 7448 0200 Buchanan Communications Tim Thompson / Ben Romney +44 (0) 20 7466 5000
Source:Coastal Energy Company