Coastal Updates on Drilling at Phu Kheng-1 Onshore Thailand

Coastal Energy announced that the Phu Kheng-1 exploration well on Block L27/43 in northeastern Thailand has reached total depth and has been suspended pending a hydraulic fracturing stimulation and test. Coastal is the largest holder of Block L27/43 with a 36.1% net working interest.

The well was drilled to a total depth of 2,209 meters sub-sea and encountered Jurassic and Triassic sandstones in the Phu Kradung and Nam Phong formations. Initial log interpretation confirms that the formation is gas-saturated with low porosity and permeability and that further evaluation and testing is required to determine the commercial viability of the well. The operator plans to test the well within the next four to eight weeks subject to workover rig availability.

The rig which drilled the well is currently being mobilized to the Si That-3 appraisal well location in Block L13/48, which is expected to spud later this month. The two previous wells on the Si That structure both tested gas. Coastal owns a 21.7% net working interest in Block 13/48.