Coastal Energy Completes Phu Horm-10

Coastal Energy sees success with drilling, testing and completion of the Phu Horm-10 well ('PH-10') located on the Phu Horm gas field, northeast Thailand.

PH-10, which has been completed as a production support well, sustained an average flow of 10 million cubic feet per day and was directionally drilled from the PH-4 production well location. The well was drilled to a total depth of 2343 meters sub-sea and encountered the primary reservoir, the Pha Nok Khao ('PNK'), at 2068 meters sub-sea. The primary objective of the well was to confirm reserves in a previously untested part of the gas field and provide additional production capability in the event of future production increases.

Coastal's interest in the field is held indirectly through APICO LLC, which retains a 35% equity share in the gas field. Coastal is APICO's largest shareholder with 36.1% interest.

Frank Inouye, Chief Executive of Coastal Energy commented:

"The results of the PH-10 well are extremely encouraging and reaffirm the fact that Phu Horm is a major gas field. We know the fractured carbonate reservoir is extremely complex and with each new well we gain a better understanding of the field geology. The information from the recent drilling will certainly help APICO in the forthcoming drilling campaign, which is expected to commence in the next month. The two well program includes the appraisal of the Dong Mun gas discovery in block L27/43 and a test to verify the possible southern extension of the Phu Horm gas field outside the current production license."