HOUSTON, Aug. 11, 2011 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX:CEN) (AIM:CEO) announces the results of production testing on two additional wells at Bua Ban North B and the appraisal well at Songkhla H.
The Bua Ban North B-05 well was completed using an electric submersible pump ("ESP") and is currently producing 2,500 bopd from the Miocene interval. The Bua Ban North B-01 well was completed using an ESP and is currently producing 600 bopd from the Oligocene interval. Total production from the Bua Ban North field is averaging approximately 7,100 bopd. The Company has also completed the B-07 water injection well and expects to complete the three remaining producing wells by the end of August.
The Songkhla H-01 sidetrack was drilled to a total depth of 9,140 feet TVD and downdip from the original wellbore to determine the extent of the field. The well encountered 30 feet of net water bearing sand in the Lower Oligocene interval. Pressure data confirmed the field limit is consistent with internal estimates based on seismic data.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"Bua Ban North B continues to exceed our expectations and we are very pleased with the four currently producing wells. We continue to produce the Bua Ban North B wells at two-thirds pump capacity to monitor reservoir performance. Given the reservoir quality and well performance we have seen from the Miocene reservoir thus far, we are now planning to move the rig back to Bua Ban North and drill delineation wells to further define the extent of the Miocene trend. This success has also led us to begin further evaluation and remapping of the Miocene trend along the western side of the basin stretching from Bua Ban North to Benjarong. We expect to begin exploration drilling targeting the Miocene at Bua Ban South in the fourth quarter.
"The results of the Songkhla H-01 appraisal indicate an oil column of approximately 200 feet. We are pleased with the Songkhla H discovery as there are numerous other prospects which can be drilled nearby and, if successful, developed from a central Songkhla H production facility. We plan to apply for a production license in the Songkhla H area and begin developing the area following government approval."
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.
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.
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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.
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