SOURCE: Coastal Energy Company

Coastal Energy Company

April 14, 2010 08:30 ET

Coastal Energy Announces Results of Benjarong A-01 Exploration Well

HOUSTON, TX--(Marketwire - April 14, 2010) -  Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO), an independent exploration and production company with assets in Thailand, announces the results of the Benjarong A-01 exploration well in the Gulf of Thailand.

The Benjarong A-01 well was drilled to a total depth of 10,565 feet TVD (3,242 meters). The well appears to be an oil discovery and encountered 83.5 feet (25.5 meters) of apparent net oil pay in the Eocene primary reservoir, based on wireline log data. Porosity in the reservoir averages 11.9%. Additionally, the well encountered 16.5 feet (5 meters) of apparent net oil pay with 15.1% porosity in a shallower section of the Eocene reservoir.

The Company has spudded a second well, the Benjarong A-02, which will test Lower Oligocene and Eocene objectives in a structure separate from the Benjarong A-01 well. Following drilling of Benjarong A-02, the Company will perform a flow test on Benjarong A-01.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"The Benjarong A-01 well has characteristics similar to that of the original Benjarong-1 well which was drilled in 1996. We have yet to determine the commerciality of the well at this porosity and will not be able to establish its productivity until a flow test is conducted. The flow test of the A-01 well is scheduled to begin once drilling of Benjarong A-02 is complete. In the event of an additional discovery at Benjarong A-02, it will be more cost effective to flow test both at the same time. Production from both wells would then be tied into a MOPU and produced in a manner similar to Songkhla A."

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.

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