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HOUSTON, Oct. 16, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal") (TSX:CEN) (AIM:CEO) announces the results of the Songkhla A-13 well and an operations update.
The Songkhla A-13 well was drilled to a depth of 8,000 feet TVD into an untested fault block in the northeast area of the Songkhla field. The well encountered 67 feet of Lower Oligocene net pay with 18% porosity. The Company is currently evaluating an updip location for a confirmation well. In the meantime a water injection well in the A-10 fault block will be drilled.
Production FacilitiesBua Ban North
The conversion of the recently acquired Richmond mobile offshore production unit (MOPU) has been completed and it is now capable of handling 55,000 bbl/d. Due to the increased fluid handling capacity, the Company has replaced the Bua Ban North B MOPU with the Richmond. The replacement is complete and production is in the process of coming back online at Bua Ban North B.
Bua Ban South
The Company also completed its acquisition of the Bua Ban North B MOPU and has re-installed it at Bua Ban South. The Bua Ban South A-05 is presently being completed with the hydraulic workover unit (HWU). The HWU will then commence the hydraulic fracturing program for the Lower Oligocene and Eocene formations in the A-01 and A-03 wells is scheduled to begin in late October.
3D Seismic Acquisition
The acquisition of 3D seismic over the entire Songkhla basin is 60% complete. The Company expects delivery of the processed data in Q113.
The Company has upsized and amended its senior secured revolving credit facility with BNP Paribas and Commonwealth Bank of Australia. The facility has been increased to $200MM and includes two additional banks, the Standard Bank and Standard Chartered Bank.