Coastal Secures Atwood Manta for Malaysia, Thailand Operations

Coastal Energy said Wednesday that it has secured a 12-month contract with a subsidiary of Atwood Oceanics for the brand new jackup Atwood Manta (400' ILC) as a second unit for its offshore operations in Malaysia and Thailand.

According to the contract, the company will pay a day rate of $145,000 for the rig. Coastal expects delivery of the Manta late November this year.

"The addition of a second drilling rig is an important milestone for Coastal, as it will allow us to conduct our development and exploration programs simultaneously. Given the active drilling program that we have outlined, we believe a two rig program is an appropriate step toward unlocking the value of our highly prospective asset base," Coastal's President and CEO Randy Bartley said in a statement.

Coastal had earlier in July this year inked a 12-month extension contract for the jackup rig Vicksburg (300' ILC), Atwood disclosed in a statement July 10. The extension is priced at a day rate of $105,000 from January 1, 2013, to June 3, 2013, after which the rate will increase to $115,000 until December 31, 2013.

Coastal entered a service contract with state-owned Petronas in July this year for the development and production of petroleum from the Kapal, Banang and Meranti cluster of fields, offshore Malaysia. Coastal said that it expects first oil from the Kapal field within one year, followed by production from the Banang field in 2014. A total of seventeen wells will be drilled with ten planned at Kapal, four at Banang and three at Meranti.

The company encountered success with the Songkhla A-10 well, offshore Thailand, in September this year. It was disclosed Sept. 24 that the well produced oil at 4,000 barrels per day with "additional gains in production" expected as the well continues to clean up. 



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