Coastal to Restart Drilling Ops at Songkhla B-02 Sidetrack

Coastal Energy has provided an update of its operations at the Songkhla development in Thailand.

Songkhla B

The top drive on the rig has been repaired and is currently being rigged up. The Company expects to recommence drilling operations on the Songkhla B-02 sidetrack on Wednesday.

Songkhla A

The workover of the Songkhla A-04 is nearing completion. The Company expects the well to begin producing within the next two days.

Phu Kheng-1

(L27/43, Coastal 36.1% Working Interest)

Following an earlier hydraulic fracturing (frac) test, the operator is planning to conduct a second frac testing program targeting two shallower intervals in the Phu Kradung sandstones. Both of these zones exhibited good gas shows during drilling and logging analysis suggests better porosity and permeability than in the recently tested, deeper zone.

A hydraulic workover unit has been secured and the testing program is expected to recommence in early March.

Si That-3

(L13/48, Coastal 21.7% Working Interest)

The operator has suspended the Si That-3 well following completion of a Production Logging Tool (PLT) survey. Despite gas flow to the surface being measured during testing, no free gas flow was detected by the PLT tool from the reservoir above the water zone. The surface gas seen during testing is believed to be mostly coming out of solution dissolved under reservoir conditions with minor free gas contribution below the PLT detection limit.

Following the result of the PLT survey, the operator will conduct a review of the remaining prospectivity of the L13/48 license.