Coastal to Begin Extended Production Tests at Bua Ban

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

The Bua Ban North A-02 exploration well was drilled to a depth of 8,100 feet into an upthrown fault block adjacent to the recent discovery in the Bua Ban North A-01 well. The A-02 well encountered 205 feet of net sand in the Eocene interval with 16% average porosity. The Eocene interval in the A-02 well appears to have good reservoir characteristics and formation pressure data obtained from wireline logging (MDT measurements) indicate an oil gradient. However, log results were inconclusive and fluid samples were not obtainable. The Company is uncertain of the commerciality of the well until it can be flow tested. Coastal plans to perforate and test the Eocene in the A-02 well once suitable testing facilities are installed.

Following suspension of the A-02 well, the Bua Ban North A-04 well was spudded and will test the Miocene interval in an upthrown block relative to the productive Miocene sands encountered in the A-01 well, along with a step-out of the Upper Oligocene discovery from the A-01 well. The Company plans to drill an additional two to three appraisal/development wells at Bua Ban North A following the A-04 well.

Coastal is currently mobilizing a MOPU (mobile offshore production unit) to the Bua Ban North A location which is expected to be installed in early May. Following installation of the MOPU, the Company will begin extended production tests of the wells at Bua Ban North A.

The Bua Ban A-04 and A-07 wells are continuing to clean up following the single stage fracs on each well. The A-04 and A-07 wells are flowing at 200 bopd and 220 bopd, respectively.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We will be able to determine the commerciality of this new well following testing, which will begin in early May. Following the completion of this phase of appraisal and development drilling at Bua Ban North A, we plan to move the rig to Bua Ban North B, which is further north and has prospective targets in all three intervals."


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