/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES/
HOUSTON, Nov. 24 /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-08 development well on Block G5/43 in the Gulf of Thailand.
The Songkhla A-08 well was drilled to a total measured depth of 9,112 feet (2,777 meters) and logged approximately 92 feet (28 meters) of net pay with 18% porosity in the Lower Oligocene primary reservoir. The well is currently testing over 3,500 bopd with a 3% water cut.
The Songkhla A-08 well was drilled as a replacement development well for the A-02 well, which was converted into a water injection well due to a mechanical problem.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"We are very pleased with the results of the A-08 development well. Total production from the Songkhla A facility is now over 10,000 bopd from four wells: A-01, A-03, A-04 and A-08. Two water injection wells, A-02 and A-05, are also in operation. We are currently drilling a third water injection well, the A-06, at Songkhla before mobilizing the rig to the Songkhla B location. We expect the rig to begin drilling at Songkhla B in early December. In addition, a workover unit will be mobilized to Songkhla Main to repair the A-07 well and install larger submersible pumps on the A-01 and A-03 wells."
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): Rory Murphy, Paul Cocker, +44 (0) 20 7409 3494; Thomas Weisel Partners (Broker): Paul Colucci, +44 (0) 20 7877 4300; Macquarie Capital (Europe) Limited (Broker): Ben Colegrave, Paul Connolly, +44 (0) 20 3037 2000; Buchanan Communications: Tim Thompson, Catherine Breen, Katharine Sutton, +44 (0) 20 7466 5000