SOURCE: Coastal Energy Company

January 19, 2010 16:24 ET

Coastal Energy Announces Results of Songkhla B-01 Exploration Well

HOUSTON, TX--(Marketwire - January 19, 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 Songkhla B-01 exploration well on Block G5/43 in the Gulf of Thailand.

The Songkhla B-01 well was drilled to a total measured depth of 9,050 feet (2,758 meters) and encountered oil-bearing sands in the Lower Oligocene formation. The well encountered a breached trap in the Lower Oligocene formation and as a result logged only 10 feet of net pay. The Eocene formation contained substantial hydrocarbon shows but with low porosity and permeability. The Company plans to temporarily abandon the well and will return to complete it dependent upon commercial discoveries in the Songkhla B area.

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

"The results of the Songkhla B-01 well have provided us with valuable information about the structure. The next step is to drill the Songkhla B-02 well on the western side of the fault block in order to fully evaluate Songkhla B and make decisions regarding future development, as a commercial discovery will be required to complete and produce the B-01 well. We expect to move to the Songkhla B-02 well today.

"Additionally, we have mobilized a workover unit to the Songkhla A location and have begun repair operations on the Songkhla A-04 well."

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 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