Coastal Energy Company, an independent exploration and production company with assets in Southeast Asia, announced the results of the Bua Ban North B-17 and Ko Kra A-01 exploration wells and provided an update to its 2013 guidance.
Bua Ban North
The Bua Ban North B-17 well was drilled to a depth of 3,800 feet TVDSS. The well encountered 34 feet of net pay in the M100 Miocene reservoir with average porosity of 23 percent. The B-17 well was drilled into fault block north of the existing Bua Ban North reserve base. This fault block was previously carried in the Company's internal prospective resource inventory. The well also encountered reservoir quality sands with significant oil shows in some of the deeper Miocene intervals which were penetrated off structure due to the high angle of the wellbore.
Block G5/50 (Ko Kra)
The Ko Kra A-01 well was drilled to a total depth of 8,330 feet TVDSS in Block G5/50, north of the Company's existing asset base in Block G5/43. The well encountered a section of Tertiary rock similar to what is present and productive in the Songkhla basin. Significant gas shows encountered during drilling are indicative of an active hydrocarbon system in the basin. Core samples were taken for further analysis. No commercial hydrocarbon sands were encountered and the well was plugged and abandoned.
The Company expects 2013 full year average production to average between 24,000 barrels of oil equivalent per day and 26,500 boepd, with an exit rate ranging from 26,500 boepd to 33,000 boepd. The Company's lower full year average guidance reflects the operational delays associated with the damage which occurred to the two MOPUs during transit as well as the operational and mechanical delays at Bua Ban North & Bua Ban South in the first quarter. Total company production year to date through May 31 has averaged approximately 23,700 boepd.
Randy Bartley, president & ceo of Coastal Energy, commented:
"The new discovery at Bua Ban North is encouraging. This is the first test of one of the multiple fault blocks surrounding the Bua Ban North field which contain 67.5 million barrels of unrisked recoverable prospective resources. Following the successful results of this well, we expect further additions to our existing reserve base at Bua Ban North. The oil shows in the deeper Miocene sands are also encouraging and will give us additional prospectivity in these horizons updip on the structure.
"Although no commercial hydrocarbons were encountered in the Ko Kra A-01 well, we are encouraged by the results. This was the first well drilled in the basin using modern 3D seismic and we saw many characteristics of an active hydrocarbon system. Further analysis of the data from this well, will give us a better understanding of the petroleum system and help us generate additional prospects in the Ko Kra basin.
"One of the drilling rigs will drill an additional well at Bua Ban North before mobilizing to Malaysia, while the other has been mobilized to the Bua Ban Main platform to drill four to five wells into the tighter Lower Oligocene and Eocene sands which will be hydraulically fracked in the third quarter.
"Coastal has experienced several operational delays in the first half of 2013 which have put us behind schedule in our development plans both in Thailand and Malaysia. Now that we have fully assessed these particular issues and the impact on our future development plans, we are in a better position to revise our outlook for the remainder of the year. Although timing has slipped for the project in Malaysia and the development of Songkhla H, we are well positioned going forward to execute our original plan. We now expect first oil from the Kapal field in Malaysia in late 3Q 2013 and are targeting first oil at Songkhla H late in the fourth quarter of this year."