SOURCE: Coastal Energy Company

Coastal Energy Company

May 16, 2011 08:30 ET

Coastal Energy Announces Discovery at Bua Ban North B

HOUSTON, TX--(Marketwire - May 16, 2011) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO) announces the successful results of the Bua Ban North B-03 exploration well.

The Bua Ban North B-03 well was drilled to 4,420 feet TVD and encountered 48 feet of net pay in the Miocene objective with average porosity and water saturations of 28% and 33%, respectively. The water saturations are the lowest seen thus far in the Miocene trend. The B-03 is currently being cased and will then be suspended pending the arrival of testing equipment. The Company then plans to spud the B-05 well to appraise the Lower Oligocene reservoir updip from the discovery in the B-01 well.

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

"The B-03 discovery is significant as it proves that all Miocene fault block configurations along the western edge of the basin are capable of trapping hydrocarbons. This well also continues to highlight the high reservoir quality in the Lower Miocene and Upper Oligocene intervals on the western side of the basin. Based on this discovery we plan to begin evaluating any potential Miocene targets in the central part of the basin between Songkhla and Bua Ban.

"Our 2011 exploration program has been successful thus far with 6 of the 7 wells being successful and adding new reserves."

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)
    +44 (0) 20 7448 0200
    Hugh Sanderson
    Travis Inlow

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