Coastal Hits Net Pay at Bua Ban North A-06 Well

Coastal Energy announced the successful results of the Bua Ban North A-06 well and provides an operations update.

The Bua Ban North A-06 well was drilled to a total depth of 5,950 feet TVD. The well encountered 63 feet of net pay in the Miocene with average porosity of 28 percent. The A-06 well was drilled into the western bounding fault block originally discovered by the A-01 well and encountered the main Miocene objective 50 feet downdip from the original discovery well. The reservoir quality seen in the A-06 is superior to that in the A-01 well, which encountered 32 feet of net pay with 26 percent porosity.

Production is being restored at Songkhla A following the facilities upgrade and is currently producing at approximately 5,600 bopd. Aggregate offshore production is approximately 15,000 bopd and total Company production is approximately 17,000 boepd.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We are very pleased with the results of the Bua Ban North A-06 well. Based on log and pressure data, the areal coverage of this western fault block has increased from 160 acres to over 500 acres. The better than expected reservoir quality indicates the A-06 should make an excellent producing well. We plan to drill an additional well further north in this fault block to further test the area between Bua Ban North A & B in the western fault block.

"The mobile offshore production unit is expected to be on location at Bua Ban North A in late October, at which time we will begin production testing at the field."