The Bua Ban South A-02 well was drilled to a total depth of 8,275 feet TVD. The well encountered 8 feet of net pay in the Lower Oligocene section with 17 percent porosity, which is consistent with porosities at this depth in the Songkhla basin. The oil water contact was encountered at 8,120 feet TVD, indicating an oil column of 1,800 feet. The A-02 well was 700 meters from the A-01 well at the top of the Lower Oligocene. Pressure data indicate that this accumulation discovered by the Bua Ban South A-01 and A-02 wells is connected to the Bua Ban #1 & #3 wells, which were drilled by the Company in 2005. This accumulation is separate from the currently producing Bua Ban Main field. Analysis indicates that this reservoir is large enough to be commercial.
The Bua Ban South A-03 well was drilled on the western terrace of the main bounding fault of the Bua Ban field and encountered high quality Miocene sands with no hydrocarbon shows.
Randy Bartley, President and CEO of Coastal Energy, commented:
“The Bua Ban South A-02 well penetrated the same reservoir as the A-01 well close to its downdip limit. It has helped us to delineate the size of the Oligocene discovery at this location. We look forward to testing this reservoir in the near future.”
“The lack of hydrocarbons in the Bua Ban South A-03 well is disappointing; however, it was a higher risk prospect given its location outside of the main bounding fault.”
“We have spudded the Bua Ban South A-04 well . It is a Miocene objective in the eastern flank fault block. The A-04 well is being drilled 2,500 meters south of the original Bua Ban Main A-11 Miocene discovery in the continued attempt to delineate the southern boundary of that Miocene accumulation.”
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 Certified Petroleum Geologist and a Licensed Professional Geoscientist 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.
The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
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