Coastal Energy Announces Offshore Operations Update and Onshore Discovery
Coastal Energy Company
22.02.2012 22:02
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HOUSTON, 2012-02-22 22:02 CET (GLOBE NEWSWIRE) --
Coastal Energy Company (the 'Company' or 'Coastal Energy') (TSX:CEN) (AIM:CEO),
an independent exploration and production company with assets in Thailand,
announces an update of its offshore operations and the successful discovery and
production testing results from the sidetrack of the Dong Mun 3 onshore gas
well and acquisition of increased working interest there.
Offshore
Coastal Energy has drilled two additional producing wells and one water
injection well at Bua Ban North. One of the producing wells was drilled
horizontally, has been tied in and is currently producing. The Company has two
more wells to bring online at Bua Ban North. Current offshore production is
averaging 26,000 bopd, bringing total company production to 28,000 boepd. The
rig is now being mobilized to Bua Ban South and is expected to spud the first
well there by the end of February.
Onshore
The sidetrack of the Dong Mun 3 well, located on Block L27/43 onshore Thailand,
reached a total depth of 2,539 meters TVDSS on the sidetrack of the Dong Mun 3
well. The well encountered a vertical gas column of approximately 113 meters
with porosity of up to 6 percent. The well was flow tested for 24 hours and
produced at an average rate of 15 mmcfd with flowing pressure of 1,950 psi
through a 32/64' choke. Further testing, appraisal and commercialization
options for the Dong Mun are being reviewed by the partners. APICO is a joint
venture and the operator of the L27/43 concession. Coastal currently owns 36.1%
of APICO, making it the largest stakeholder in the joint venture.
Coastal has entered into an agreement to acquire an additional 2.9% stake in
APICO, which is currently held by a minority partner, for US$9.25 million in
cash, bringing Coastal's interest in APICO to 39%. This transaction is expected
to close on or about February 23, 2012. APICO also holds a 35% interest in the
nearby Sinphuhorm Gas Field, thus increasing Coastal's net interest in the
field to 13.65%.
Randy Bartley, President and CEO of Coastal Energy, commented:
'Our offshore operations continue to progress as planned. The recent wells at
Bua Ban North showed results consistent with our prognoses. Most importantly,
the horizontal well at Bua Ban North B is performing similarly to the
horizontal well which was drilled at Bua Ban North A in 2011. This further
confirms our thesis that horizontal wells will be a significant tool in the
development of this field.
'The test results of the Dong Mun 3 sidetrack are extremely encouraging.
Testing is ongoing to determine the maximum deliverability of the well and
evaluate additional stimulation, which could lead to a significant increase in
flow rates. The location of this sidetrack was determined using recently
acquired 3D seismic. The drilling results combined with the new 3D seismic
strongly indicate that this gas structure has an areal extent of over 5,000
acres, giving this resource tremendous potential. Now that the commercial
viability of the field has been determined, we have begun the process of
applying for a production license.
'We are also pleased with our acquisition of a further stake in APICO. This
transaction is accretive to our 1P and 2P NAVs using only Sinphuhorm
valuations. The discovery being announced today makes it an even more exciting
transaction for us.'
Particulars of the Transaction
Coastal acquired the additional 2.9% stake in APICO from Roil Production
Thailand, LLC. APICO holds a 35% working interest in the Sinphuhorm natural gas
field onshore Thailand, as well as 100% working interests in concessions L27/43
and L15/43 onshore Thailand. APICO had USD33.4MM of net income in 2010.
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.comor may be
found in documents filed on SEDAR at www.sedar.com.
The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
CONTACT: Enquiries:
Coastal Energy Company
Email: investor@CoastalEnergy.com
+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
Paul Connolly
Jeffrey Auld
FirstEnergy Capital LLP (Broker)
Hugh Sanderson
+44 (0) 20 7448 0200
Travis Inlow
Buchanan Communications
Tim Thompson
+44 (0) 20 7466 5000
Ben Romney
News Source: NASDAQ OMX
22.02.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Coastal Energy Company
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: KYG224041189
WKN:
End of Announcement DGAP News-Service
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Coastal Energy Company
22.02.2012 22:02
---------------------------------------------------------------------------
HOUSTON, 2012-02-22 22:02 CET (GLOBE NEWSWIRE) --
Coastal Energy Company (the 'Company' or 'Coastal Energy') (TSX:CEN) (AIM:CEO),
an independent exploration and production company with assets in Thailand,
announces an update of its offshore operations and the successful discovery and
production testing results from the sidetrack of the Dong Mun 3 onshore gas
well and acquisition of increased working interest there.
Offshore
Coastal Energy has drilled two additional producing wells and one water
injection well at Bua Ban North. One of the producing wells was drilled
horizontally, has been tied in and is currently producing. The Company has two
more wells to bring online at Bua Ban North. Current offshore production is
averaging 26,000 bopd, bringing total company production to 28,000 boepd. The
rig is now being mobilized to Bua Ban South and is expected to spud the first
well there by the end of February.
Onshore
The sidetrack of the Dong Mun 3 well, located on Block L27/43 onshore Thailand,
reached a total depth of 2,539 meters TVDSS on the sidetrack of the Dong Mun 3
well. The well encountered a vertical gas column of approximately 113 meters
with porosity of up to 6 percent. The well was flow tested for 24 hours and
produced at an average rate of 15 mmcfd with flowing pressure of 1,950 psi
through a 32/64' choke. Further testing, appraisal and commercialization
options for the Dong Mun are being reviewed by the partners. APICO is a joint
venture and the operator of the L27/43 concession. Coastal currently owns 36.1%
of APICO, making it the largest stakeholder in the joint venture.
Coastal has entered into an agreement to acquire an additional 2.9% stake in
APICO, which is currently held by a minority partner, for US$9.25 million in
cash, bringing Coastal's interest in APICO to 39%. This transaction is expected
to close on or about February 23, 2012. APICO also holds a 35% interest in the
nearby Sinphuhorm Gas Field, thus increasing Coastal's net interest in the
field to 13.65%.
Randy Bartley, President and CEO of Coastal Energy, commented:
'Our offshore operations continue to progress as planned. The recent wells at
Bua Ban North showed results consistent with our prognoses. Most importantly,
the horizontal well at Bua Ban North B is performing similarly to the
horizontal well which was drilled at Bua Ban North A in 2011. This further
confirms our thesis that horizontal wells will be a significant tool in the
development of this field.
'The test results of the Dong Mun 3 sidetrack are extremely encouraging.
Testing is ongoing to determine the maximum deliverability of the well and
evaluate additional stimulation, which could lead to a significant increase in
flow rates. The location of this sidetrack was determined using recently
acquired 3D seismic. The drilling results combined with the new 3D seismic
strongly indicate that this gas structure has an areal extent of over 5,000
acres, giving this resource tremendous potential. Now that the commercial
viability of the field has been determined, we have begun the process of
applying for a production license.
'We are also pleased with our acquisition of a further stake in APICO. This
transaction is accretive to our 1P and 2P NAVs using only Sinphuhorm
valuations. The discovery being announced today makes it an even more exciting
transaction for us.'
Particulars of the Transaction
Coastal acquired the additional 2.9% stake in APICO from Roil Production
Thailand, LLC. APICO holds a 35% working interest in the Sinphuhorm natural gas
field onshore Thailand, as well as 100% working interests in concessions L27/43
and L15/43 onshore Thailand. APICO had USD33.4MM of net income in 2010.
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.comor may be
found in documents filed on SEDAR at www.sedar.com.
The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062
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.
CONTACT: Enquiries:
Coastal Energy Company
Email: investor@CoastalEnergy.com
+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
Paul Connolly
Jeffrey Auld
FirstEnergy Capital LLP (Broker)
Hugh Sanderson
+44 (0) 20 7448 0200
Travis Inlow
Buchanan Communications
Tim Thompson
+44 (0) 20 7466 5000
Ben Romney
News Source: NASDAQ OMX
22.02.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Coastal Energy Company
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: KYG224041189
WKN:
End of Announcement DGAP News-Service
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