Coastal Energy, an independent exploration and production company, soared on news it has produced successful testing results from the first two Bua Ban North A wells in the Gulf of Thailand.
The wells have been completed and are undergoing production testing. The Bua Ban North A-10 well, which came fully online on December 28, has been steadily producing approximately 3,000 barrels of oil per day (bopd).
The Bua Ban North A-06 well has been completed and is producing about 1,000 bopd.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
The company expects to have the remaining eight wells in the region online by the middle of February.
The company has extended its crude oil sales agreement for an additional two years and has secured a discount of $1.70 per barrel to the Dubai benchmark crude price, which is at a premium to the previous discount to Dubai of $4.25 per barrel.
Randy Bartley, President and Chief Executive Officer of Coastal Energy, said: "The recent results from both drilling and production testing have exceeded our expectations.
"We are pleased with the initial testing results from our first horizontal well and we are currently planning two additional horizontal development wells at Bua Ban North B based on these successful results.
"Following the completion of the three most recent wells and the additional drilling at Bua Ban North, the rig will be moved to Bua Ban South to begin exploration of this highly prospective asset."
The share price soared 10.58% to 1,087.5p by 08:28.
NR
