Coastal has provided an update for its operations at the Songkhla field, offshore Thailand.
The Songkhla B-02 sidetrack reached a total depth of 11,073 feet (3,375 meters) and encountered 12 feet of net pay in the Lower Oligocene reservoir, approximately five feet more than was encountered in the original Songkhla B-02 well. Following logging it has been confirmed that the interval has a minimum oil column of approximately 300 feet; however, the estimated reserves are not sufficient to justify a standalone development. Preliminary evaluations indicate that this reservoir can be reached with a high angle well from the Songkhla A structure. The existing Songkhla B wells are being plugged and abandoned and the rig will be mobilized to the Benjarong prospect.
The workover of the Songkhla A-04 was completed and the well is producing approximately 3,000 bopd. Workover operations have commenced on Songkhla A-03 to install a larger electric submersible pump and the well is expected to return to production by the end of the week. This will be followed by similar operations on Songkhla A-01. Current production from Songkhla A is approximately 8,000 bopd. Coastal's combined onshore and offshore production is approximately 10,000 boepd.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "The results of the Songkhla B-02 sidetrack confirm the existence of a hydrocarbon trap with good porosity and permeability. Although too thin for a standalone development, drilling from the Songkhla A structure could make this discovery commercial. We will evaluate this option at a later date when we return to Songkhla A for future development work. We expect to spud our first Benjarong exploration well within the next two weeks.
"Workover operations at Songkhla A are progressing as planned and we have restored production from the A-04 well. We have almost completed the pump replacement on the A-03 well and will then begin the workover of the A-01."
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