Coastal Encounters Net Pay at Bua Ban Well

Coastal Energy announced the successful results of the Bua Ban North A-04 well.

The Bua Ban North A-04 well was drilled to 6,417 feet TVD to test Miocene and Upper Oligocene targets in an upthrown block west of the discoveries in the A-01 well. The well encountered 22 feet of net pay in the Miocene with average porosity of 29%. The reservoir is in a fault block separate from the A-01 well and the Company estimates it contains approximately six million barrels of oil in place.

The A-04 well also encountered 11 feet of net sand with shows in a deeper Miocene section with 22% average porosity and 10 feet of net sand with shows in the Upper Oligocene with 25% porosity. MDT samples from these two zones were not able to be obtained due to the high angle of the well. The productivity of the deeper Miocene and Upper Oligocene zones will not be determined until they can be flow tested, which is expected to begin in mid-May once the MOPU is on location.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We continue to encounter shallow Miocene pay zones with excellent porosity and reservoir characteristics. We plan to begin targeting the recently discovered zones with horizontal wells to maximize production from each well. The original Miocene vertical test well, Bua Ban Main A-11, which was drilled in Q310 and came online at 300 bopd, continues to produce over 225 bopd with less than 1% water cut. The strong performance to date of the A-11 combined with the fact that the Miocene discoveries at Bua Ban North exhibit much better porosity and permeability than the A-11 well strongly supports our conclusion that the shallow Miocene is a viable target on the western side of the Songkhla basin. We believe that it could prove to be a very prolific play if exploited using horizontal wells.

"The two deeper zones which were encountered will need to be tested to determine their viabilities. The deeper Miocene zone has not been encountered in the other Bua Ban North wells. Both of these zones will be tested once the MOPU is on location.

"The A-03 well has been spudded and will test targets in the Miocene to the south of the recently drilled A-01 and A-04 wells."


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