SOURCE: Coastal Energy Company

February 16, 2010 17:14 ET

Coastal Energy Announces Operational Update

HOUSTON, TX--(Marketwire - February 16, 2010) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO), an independent exploration and production company with assets in Thailand, announces an update of its operations in Thailand.

Songkhla B

The top drive on the rig has been repaired and is currently being rigged up. The Company expects to recommence drilling operations on the Songkhla B-02 sidetrack on Wednesday.

Songkhla A

The workover of the Songkhla A-04 is nearing completion. The Company expects the well to begin producing within the next two days.

Phu Kheng-1 (L27/43, Coastal 36.1% Working Interest)

Following an earlier hydraulic fracturing (frac) test, the operator is planning to conduct a second frac testing program targeting two shallower intervals in the Phu Kradung sandstones. Both of these zones exhibited good gas shows during drilling and logging analysis suggests better porosity and permeability than in the recently tested, deeper zone.

A hydraulic workover unit has been secured and the testing program is expected to recommence in early March.

Si That-3 (L13/48, Coastal 21.7% Working Interest)

The operator has suspended the Si That-3 well following completion of a Production Logging Tool (PLT) survey. Despite gas flow to the surface being measured during testing, no free gas flow was detected by the PLT tool from the reservoir above the water zone. The surface gas seen during testing is believed to be mostly coming out of solution dissolved under reservoir conditions with minor free gas contribution below the PLT detection limit.

Following the result of the PLT survey, the operator will conduct a review of the remaining prospectivity of the L13/48 license.

Additional information, including the Company's complete competent person's report may be found on the Company's website at or may be found in documents filed on SEDAR at

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.

These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

This news release is not for dissemination in the United States or through United States newswire services

Contact Information

  • Enquiries:

    Coastal Energy Company
    Randy L. Bartley
    Chief Executive Officer
    +1 713 877 6705

    William C. Phelps
    Chief Financial Officer
    +1 713 877 6727
    Email: Email Contact

    Strand Hanson Limited (Nominated Adviser)
    +44 (0) 20 7409 3494
    Rory Murphy
    Paul Cocker

    Thomas Weisel Partners (Broker)
    +44 (0) 20 7877 4300
    Paul Colucci

    Macquarie Capital (Europe) Limited (Broker)
    +44 (0) 20 3037 2000
    Ben Colegrave
    Paul Connolly

    Buchanan Communications
    +44 (0) 20 7466 5000
    Tim Thompson
    Catherine Breen
    Katharine Sutton