Coastal Energy drops despite new Thai discovery

Thailand focused oil company Coastal Energy's share price dropped off a cliff after the company published test well results at its offshore Bua Ban South site.

The results of the test appear positive, with the company saying it encountered 88 feet of net pay, with 12% porosity. The data also suggests the reservoir is a separate discovery from the Bua Ban main field.

However, Coastal may be a victim of its own success, as the stock has risen 181% in the past 12 months and the market may want more proof of a significant find before sending the shares higher.

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Coastal's President, Randy Bartley, said "This successful well has re-enthused us for the Lower Oligocene at the Bua Ban South area. We will also be testing two adjacent upthrown Miocene fault blocks with the next two wells."

By 11:46 Coastal's stock had dropped 6.8%.

BS