COASTAL ENERGY ANNOUNCES OPERATIONS UPDATE
12 Jul 2013 11:19
KUALA LUMPUR, July 9 (Bernama) -- Coastal Energy Company (the "Company" or
"Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production
company with assets in Southeast Asia, today announces an operations update.
Following completion of the current drilling program at Bua Ban North, expected
in late July, the Manta drilling rig will mobilize to Malaysia to begin the
development program at the Kapal field. All requisite permits to commence the
Kapal field development have been received. The mobile offshore production unit
("MOPU") refurbishment is expected to be complete by September. Therefore,
Coastal is well placed to commence development in Malaysia once the current
program in Thailand is complete.
Bua Ban North
As announced previously, the two horizontal wells which were drilled and
completed with the new swelling packer technology encountered production issues
during the second quarter. Consequently, the Company elected to recomplete and
reperforate these two wells using more conventional completion techniques.
The Company has recompleted the first of the two wellbores and the well is now
producing approximately 1,500 bopd. The Company will drill one additional
development well at Bua Ban North and recomplete the other horizontal swelling
packer well before mobilizing the rig to Malaysia.
The Company's offshore Thailand production averaged 21,262 bopd for the second
quarter and is currently averaging 21,500 bopd. Onshore production averaged
2,782 boepd, bringing total Company production to 24,044 boepd for the quarter.
Randy Bartley, President & CEO of Coastal Energy commented:
"We are making progress in correcting some of the mechanical issues which were
responsible for production declines in the second quarter. The performance of
the swelling packer technology was disappointing, so we have reverted to our
original completion techniques. We expect the first of the two horizontal wells
at Bua Ban North to be producing at its full potential rate by next week and the
second well to be producing at its full potential rate by the end of the month.
"The refurbishment of the two MOPUs to be utilized in Malaysia and Thailand
which were damaged in transit is progressing along schedule. We plan to bring
production in Malaysia online shortly after installation of the MOPU in
September and by the end of the year from the additional MOPU in Thailand."
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.
SOURCE: Coastal Energy Company
FOR MORE INFORMATION PLEASE CONTACT:
Coastal Energy Company
Tel : +1 (713) 877-6793
Email : Email: investor@CoastalEnergy.com
Strand Hanson Limited (Nominated Adviser)
Name : Rory Murphy / Andrew Emmott
Tel : +44 (0) 20 7409 3494
Macquarie Capital (Europe) Limited (Broker)
Name : Steve Baldwin/Andrew Jones
Tel : +44 (0) 20 3037 2000
FirstEnergy Capital LLP (Broker)
Name : Hugh Sanderson / Travis Inlow
Tel : +44 (0) 20 7448 0200
Name : Tim Thompson / Ben Romney
Tel : +44 (0) 20 7466 5000