Coastal Hits Oil Pay at Bua Ban

Bua Ban
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Coastal announced an update of its operations in the Gulf of Thailand.

Bua Ban North

The Bua Ban North A-01 exploration well encountered 32 feet of net pay in the Miocene interval and 27 feet of net pay in the Upper Oligocene interval, both with 25% average porosity. The Eocene interval was encountered approximately 700 feet deeper than originally prognosed and contained 70 feet of oil bearing sands with 14% porosity; however, given the low porosity and permeability it is not expected to flow naturally. The Company is currently mobilizing a MOPU to the location and plans to begin flow testing the well once facilities installation is complete. The Bua Ban North A-02 well has been spudded and will test Miocene, Oligocene, and Eocene targets similar to those in the A-01 well in an upthrown fault block.


The sidetrack of the Songkhla A-07 well successfully appraised the recent discovery made by the A-09 well. The sidetrack encountered 45 feet of net pay in the Lower Oligocene at 18% porosity and 33 feet of net pay in the Eocene at 17% porosity. The well was completed and flow tested at 800 bopd.

Production from the previously announced A-12 well has been tied in and is flowing at approximately 1,600 bopd. Additionally, the A-11 well is continuing to produce approximately 150 bopd from the Eocene interval. The Company plans to perforate the 44 feet of pay in the Oligocene interval in the A-11 well with a workover unit and then tie in Oligocene production.

Appraisal drilling at Songkhla has confirmed that the recent discoveries contain approximately 80 million barrels of oil in place.

Current production at Songkhla is approximately 8,500 bopd.

Bua Ban

The fracture stimulations of the Bua Ban A-04 and A-07 wells have been completed. The Company has installed a submersible pump in the A-07 well and the well is cleaning up. The A-07 well is producing frac water at a rate of 450 bbl/d with 60% oil cut. A submersible pump is currently being installed on the A-04 well. Prior to the well being shut in for pump installation, it was flowing naturally with a 50% oil cut.

Current production at Bua Ban, excluding the A-04 and A-07, is approximately 2,000 bopd with four wells producing.


The fracture stimulation of the Benjarong A-01 well is complete and the well has been producing 200 bbl/d of fluid with a 95% oil cut using coiled tubing and nitrogen lift. The Benjarong A-02 well has been acidized and appears to be non-productive.

Total offshore production is approximately 10,500 bopd and onshore production is approximately 2,000 boepd.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We are very pleased with the results of the first well at Bua Ban North. We have confirmed the extension of the petroleum system to the northern part of the basin. The discovery in the Miocene gives further evidence of a larger Miocene trend in the Songkhla basin. The discovery of productive Upper Oligocene sands also opens up a new potential zone in the basin for exploration and development.

"Although the sands in the Eocene interval are tight in the A-01 well, they were encountered deeper than we anticipated and have porosity and permeability characteristics consistent with what we would expect at that depth. We will be drilling an exploration well in an area where the Eocene is believed to be significantly shallower and exhibit higher porosity and permeability.

"Production at Bua Ban has been declining and we are evaluating methods of increasing the flow rates from the reservoir. We are adding additional water supply to increase injection and improve reservoir performance as well as evaluating development of the reservoir with horizontal wells and fracture stimulation."


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