Coastal confirms commerciality of two Thai wells

Thailand-focused oil and gas group Coastal Energy said it has reported successful results of the Bua Ban South A-03ST and A-05, which have confirmed the commerciality of the wells.

The A-03ST well was drilled to a dept of 9,700 feet TVD (true vertical depth) and encountered 31ft of net pay in the Lower Oligocene with 15% porosity. Meanwhile, the A-05 well was drilled to 3,525ft TVD and encountered 20ft of net pay across two Miocene zones with average porosity of 29%.

"We are extremely pleased with the results of both of these wells. Now that we have confirmed the commerciality based on expected recoverable resources of both the Miocene and Oligocene plays at Bua Ban South we have purchased production facilities which will arrive in the third quarter of this year," said Coastal's Chief Executive Officer and President Randy Bartley.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"We are going to return the rig to Bua Ban North and drill horizontal development wells and water injection wells until the MOPU is on location at Bua Ban South, after which time we will proceed with further appraisal drilling."

The company said that offshore production is "holding steady" at 21,700 barrels of oil per day. "We expect rates to return to and exceed previous levels once we begin drilling the additional development and injection wells at Bua Ban North."

BC