SOURCE: Coastal Energy Company

Coastal Energy Company

May 10, 2011 08:30 ET

Coastal Energy Announces Discovery at Bua Ban North B

HOUSTON, TX--(Marketwire - May 10, 2011) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO) announces the successful results of the Bua Ban North B-02 exploration well.

The Bua Ban North B-02 well was drilled to 6,513 feet TVD and encountered 62 feet of net pay in the Miocene objective with 26% average porosity. The B-02 well also tested the Eocene interval and encountered 150 feet of net sand with 19% average porosity. The Eocene sand zone was wet as it was not a target in this well and was drilled off structure.

The B-02 has been cased and suspended pending the arrival of testing equipment. Conductor pipe has been set on the B-03 well, which is testing the Miocene in a separate fault block due east from the B-02 well.

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

"The B-02 well encountered thicker sands in the Miocene than were anticipated with better than expected reservoir quality. The Eocene zone which was encountered was not a target in this well, but delivered the highest reservoir quality sands we've seen to date in the Eocene interval. The reservoir characteristics in the Eocene are better than what we have modelled at this depth. This supports our thesis of higher quality sands in the shallower Eocene and should bode well for the planned drilling of the shallower Eocene prospects to the northwest."

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.comor 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
    Email: Email Contact
    +1 (713) 877-6793

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

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

    FirstEnergy Capital LLP (Broker)
    Hugh Sanderson
    +44 (0) 20 7448 0200
    Travis Inlow

    Buchanan Communications
    Tim Thompson
    +44 (0) 20 7466 5000
    Chris McMahon
    Ben Romney