HOUSTON, June 17, 2013 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") (TSX:CEN) (AIM:CEO), an independent exploration and production company with assets in Southeast Asia, today announces the results of the Bua Ban North B-17 and Ko Kra A-01 exploration wells and 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%. 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. Guidance Update The Company expects 2013 full year average production to average between 24,000 boe/d and 26,500 boe/d, with an exit rate ranging from 26,500 boe/d to 33,000 boe/d. 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 st has averaged approximately 23,700 boe/d. Randy Bartley, President & CEO of Coastal Energy, commented: