Coastal Completes Bua Ban Installation Offshore Thailand

Coastal Energy has provided an update of its operations in the Gulf of Thailand.

Songkhla B-02

The Songkhla B-02 well reached a total measured depth of 9,606 feet (2,928 meters) and encountered 7 feet of net pay in the Lower Oligocene reservoir. A sidetrack well is being drilled targeting an area down structure into a seismically identified thicker section of the reservoir. The sidetrack well will help to define the size and potential of the reservoir. The B-02 sidetrack well has been temporarily delayed due to a mechanical issue with the drilling rig top drive. The top drive is being transported to Singapore for repair and the rig is expected to be operational again in approximately 10 days.

In addition to the discovery in the Lower Oligocene formation, the B-02 well also encountered several hundred feet of oil shows in a fractured Lower Oligocene Lacustrine shale interval. Further evaluation of this fractured shale interval is required to determine its viability as a prospective reservoir.

Songkhla A

Workover operations have commenced on the Songkhla A-04 well and are expected to be completed early next week. Following the workover of Songkhla A-04, the A-01 and A-03 electric submersible pumps will be replaced with higher volume ESPs.

Bua Ban Facilities

The Bua Ban platform installation was completed ahead of schedule. Hookup and commissioning operations have begun and the platform is expected to be ready for operations in April. The refurbishment of the Coastal Energy Resolution FSO is also on schedule and the vessel is expected to be ready for installation at Bua Ban in mid-April.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "The initial results of the Songkhla B-02 well confirm the existence of a seal and trap on the western side of the Songkhla B structure. Further evaluation is required to determine the size and potential of the reservoir. We look forward to continuing the sidetrack well once the rig is repaired. Meanwhile, workover operations at Songkhla A continue to progress and we expect to have production restored from the A-04 well shortly. The Bua Ban facilities installation is ahead of schedule and the field will be ready for development drilling in the second quarter."