Coastal Reports on Blocks L13/48 and L27/43 Onshore Thailand

Coastal Energy has issued an update on its operations in Blocks L13/48 and L27/43 onshore Thailand.

Block L 13/48

The Si That -3 well has reached total depth of 2,775.6 meters and encountered the Pha Nok Khao formation. Gas shows were seen in the reservoir interval and log analysis indicates a fractured carbonate section. The well was acid washed and tested. During testing, gas and formation water were produced at varying rates; however, an attempt to identify the exact water source was unsuccessful due to a downhole obstruction. The operator is attempting to clear the obstruction and re-run the testing equipment. Following evaluation of the test results, the operator will determine how to proceed with a flow test of the well. The drilling rig has been released and demobilized while testing has continued using slickline and coiled tubing units. Coastal holds a net 21.7% working interest in Block L13/48 through a shareholding in APICO LLC.

Block L27/43

A hydraulic workover unit has been mobilized to the Phu Kheng-1 location and is rigged up. The operator plans to begin a hydraulic fracturing test of the Lower Nam Phong formation in the coming days. Coastal holds a net 36.1% working interest in Block L27/43 through a shareholding in APICO LLC.