Coastal Energy finds more oil

Coastal Energy said it had discovered further resources in the northeast area of its Songkhla field in Thailand.

The company revealed successful results from the Songkhla A-13 well where it had drilled to a depth of 8,000 feet into an untested fault block.

The well encountered 67 feet of Lower Oligocene net pay with 18% porosity.

The firm also said it had crossed a key hurdle to increasing capacity at its Bua Ban North site after installing a new mobile offshore production unit.

This would enable it to implement the full field development plan there, Coastal said.

The company added it had increased and amended its senior secured revolving credit facility with BNP Paribas and Commonwealth Bank of Australia.

The facility has been increased to $200m and includes two additional banks, the Standard Bank and Standard Chartered Bank.

Coastal's shares were up 2.7% at 1115 on Wednesday.

MM