SOURCE: Coastal Energy Company

Coastal Energy Company

October 03, 2011 16:10 ET

Coastal Energy Announces Successful Appraisal Well at Bua Ban North A

HOUSTON, TX--(Marketwire - Oct 3, 2011) - Coastal Energy Company (the "Company" or "Coastal") (TSX: CEN) (AIM: CEO) announces the successful results of the Bua Ban North A-07 appraisal well.

The Bua Ban North A-07 well was drilled to a depth of 3,750 feet TVD on the eastern flank of the Bua Ban North A field 1.3 miles south of the A-05 discovery well. The A-07 encountered 48 feet of net pay sands in the primary Upper Miocene objective with 26% average porosity. Pressure data indicate that the A-07 well is in communication with the A-05 well. The A-07 well intentionally did not penetrate the lower section of the reservoir, in order to stay away from the oil water contact. Based on correlations from other wells in the field it is estimated that an additional 15 - 20 feet of sand exists below the bottom of the logged interval and should be above the known water contact at 3,790 feet TVD.

Randy Bartley, President & Chief Executive Officer, commented:

"The A-07 well confirms that the eastern fault block of the Bua Ban North A field extends to the south and that the structural closure of this fault block is approximately 600 acres, which is in line with expectations. The well encountered approximately 14 feet more net pay than was seen in the upper section of the Miocene in the A-05 well, with an additional 15 - 20 feet of pay sand which may be present below logged TVD.

"We plan to drill two to three more wells at Bua Ban North A before production facilities arrive on location in late October. Our current offshore production has improved to 15,500 bopd with total company production at 17,500 boepd."

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.

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
    Ben Romney