"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 mmbbl 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 Q3 2013 and are targeting first oil at Songkhla H late in the fourth quarter of this year."