Coastal Energy stumps up for second rig

Coastal Energy has contracted the Manta jackup drilling rig for its operations in the Gulf of Thailand and offshore Malaysia.

The oil and gas firm will pay a $145,000 a day for use of the rig over a period of 12 months.

The company anticipates delivery of the Manta by late November.

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"The addition of a second drilling rig is an important milestone for Coastal, as it will allow us to conduct our development and exploration programs simultaneously," explained Randy Bartley, President and Chief Executive of Coastal Energy.

"Given the active drilling programme that we have outlined, we believe a two rig programme is an appropriate step toward unlocking the value of our highly prospective asset base," Bartley added.

Shares in the company tumbled 27.5p to 1,065p on the morning of the contract announcement.

JH