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HOUSTON, Oct. 28 /CNW/ - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in Thailand, announces the completion of the Songkhla A-04 development well on Block G5/43 in the Gulf of Thailand.
The Songkhla A-04 well was drilled to a total measured depth of 9,765 feet (2,976 meters) and logged approximately 100 feet (31 meters) of net pay with 20% porosity in the Lower Oligocene primary reservoir. Completion casing has been run and the well has been completed with a submersible pump. The well is currently testing over 4,500 bopd with less than 1% water cut.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"We are very pleased with the initial results of the A-04 development well. Total production from the Songkhla A facility is now over 8,000 bopd, despite the A-02 and A-07 wells being shut-in. We are currently performing workover operations to investigate the source of the water cut on A-02. We will then drill one more water injection well, the Songkhla A-06, and then move the rig to the Songkhla B exploration prospects. We expect to be on location at Songkhla B in mid to late November.
"A hydraulic workover unit will be mobilized to Songkhla A once the rig leaves location. The workover unit will be used to repair the pump on A-07 as well as install larger capacity pumps on A-01 and A-03."
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.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE COASTAL ENERGY COMPANY
For further information: For further information: Enquiries: Coastal Energy Company: Randy L. Bartley, Chief Executive Officer, (713) 877-6705; William C. Phelps, Chief Financial Officer, (713) 877-6727, Email: investor@CoastalEnergy.com; Strand Hanson Limited (Nominated Adviser): +44 (0) 20 7409 3494, Rory Murphy, Paul Cocker; Thomas Weisel Partners (Broker): +44 (0) 20 7877 4300, Paul Colucci; Macquarie Capital (Europe) Limited (Broker): +44 (0) 20 3037 2000, Ben Colegrave, Paul Connolly; Buchanan Communications: +44 (0) 20 7466 5000, Tim Thompson, Catherine Breen, Katharine Sutton