Coastal Energy strikes more black gold in Thailand

Coastal Energy announced it has hit the largest pay zone it has seen to date at its Bua Ban North field in Thailand.

The company said drilling at its Bua Ban North B-09 well had discovered five Miocene pay zones.

Total net pay was 175 feet with average porosity of 27%.

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

The success of the well continues Coastal's run of luck in the area, with its previous two wells also yielding good results.

The Bua Ban North B-09 appraisal well was drilled between the southernmost Bua Ban North B-04 well and the Bua Ban North A-09 well to a depth of 5,200 feet.

Coastal said it now intended to drill further appraisal wells.

President and chief executive of Coastal, Randy Bartley, said he was "particularly excited" that the company had encountered oil across five Miocene zones.

"This confirms the lateral extent of the deeper pay zones below our main producing reservoir," he said.

The firm added that it intends to begin testing the first Bua Ban North A wells in the next week.

"MOPU installation and completion activities were delayed due to severe weather conditions, which disrupted certain parts of the supply chain, as well as damaged the crane on the MOPU, which has been repaired," it said in a statement to investors.