SOURCE: Coastal Energy Company

Coastal Energy Company

November 15, 2010 16:20 ET

Coastal Energy Announces Appraisal Success in Multiple Reservoirs at the Songkhla Field

HOUSTON, TX--(Marketwire - November 15, 2010) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO) announces successful appraisal drilling success from the Oligocene and Eocene reservoirs at the Songkhla field.

The Songkhla A-09 well was drilled to 8,109 feet true vertical depth and encountered 140 feet of net pay in the Lower Oligocene Wedge reservoir with average porosity of 15%. The well also encountered 75 feet of net pay in the underlying Eocene reservoir analogous to that seen in the Songkhla A-07 well, which had 16.5% porosity and initially flow tested 1,100 bopd. The A-09 well also pushed down the lowest known oil in the Eocene by 105 feet. 

The A-09 well is approximately 330 feet up structure from the Songkhla A-08 well in the Lower Oligocene. Prior to the A-09, the Songkhla A-08 well was the easternmost well on the structure, which supported the existence of the Lower Oligocene Wedge. Pressures in the A-09 approximate the original reservoir pressure at Songkhla Main therefore indicating that there has been no depletion of the Lower Oligocene Wedge from the Main reservoir. 

The Company has now spudded the Songkhla A-12 well, which will further appraise the Lower Oligocene Wedge.

Fracture testing of Eocene reservoir in the Bua Ban A-04 well remains on schedule to begin in mid-December.

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

"The A-09 well results have confirmed our prognosis of the Lower Oligocene Wedge reservoir at Songkhla. The well encountered an Oligocene pay zone which was thicker than anticipated and of thickness and porosity comparable to the A-08 well, which has been the best performing well at Songkhla to date. The shows in the Eocene reservoir are also promising as the porosity is comparable to the A-07 well which had an initial production flow of over 1,100 bopd. 

"The Company experienced some weather delays in late October and early November forcing us to shut in production; however, production is being brought back online and we expect to return to pre-shutdown levels (excluding any production from the three new Songkhla wells) of approximately 10,000 bopd. We plan to tie in production from these new wells prior to moving onto our high impact exploration drilling at Bua Ban North."

The Company plans to host a conference call to discuss its Q3 2010 results on Friday, November 19, 2010 at 11:30 AM Eastern time. The dial-in number is 800.281.7970 in the USA or +1-913.312.1414 internationally. The conference ID is 2241640.

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
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Contact Information

  • Enquiries:

    Coastal Energy Company
    Email: Email Contact
    +1 (713) 877-6793

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

    Stifel Nicolas Weisel (Broker)
    +44 (0) 20 3205 3615
    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
    Katharine Sutton
    Ben Romney