SOURCE: Coastal Energy Company

Coastal Energy Company

June 27, 2011 16:15 ET

Coastal Energy Announces Successful Appraisal Well and Major Field Extension at Bua Ban North B

HOUSTON, TX--(Marketwire - Jun 27, 2011) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO) announces the results of two wells drilled at the Bua Ban North B field, offshore Thailand.

The Bua Ban North B-08 well was drilled to a total depth of 5,900 feet TVD and encountered 92 feet of net pay with 28 percent porosity and 25 percent water saturation in the Miocene interval. The B-08 well was drilled on the easternmost fault block of the field and successfully appraised the discovery made by the B-03 well. As a result of the B-08 drilling, the lowest known oil was moved 140 feet lower in this fault block.

The B-07 well was drilled as a water injection well and to establish the oil water contact in the field. The B-07 encountered the oil water contact at 3,824 feet, which was in line with the prognosis based upon previous drilling results. Pressure and log data from the B-08 well indicate that the oil water contact may be deeper on the eastern side of the field.

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

"The results of the B-07 and B-08 wells serve as further confirmation of the Miocene trend in the Songkhla basin. Updated mapping based on drilling results indicates that the structural closure at Bua Ban North B is approximately 2,800 acres in size. The positive appraisal of the eastern fault block has major implications for the extension of this field as it has significantly increased the prospectivity along the major eastern Miocene fault which extends over three kilometers between Bua Ban North A & B.

"The drilling rig is going to mobilize to the Songkhla H prospect next, which is a commitment well outside of the two established production areas on G5/43. We will proceed with the installation of the mobile offshore production unit to begin production at Bua Ban North B once the rig is off location."

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

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

    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
    Jonathan Rivlin