Coastal Energy reports mixed results with two offshore wells recently drilled in the Gulf of Thailand

Coastal Energy has had mixed results with two offshore wells recently drilled in the Gulf of Thailand. Coastal Energy Company, dual listed on the Toronto Stock Exchange and the AIM of the London Stock Exchange, is an international oil and gas exploration and production company with assets in Thailand and Malaysia. The company’s net income totaled almost $53 million for the first three months of the year, up from $48.5 million during the same period last year. Coastal said high gas readings persisted throughout drilling of the Eocene section and, although  the majority of the zones in the Eocene were water-bearing, it noted logs indicated several zones of high oil saturations which it said confirmed oil migration in the Terrace area. “The encounter of Lower Oligocene net pay in this well, combined with the A-02 results, points to a potential stratigraphic trap in the Terrace fault block that is pinched out between the Terrace A-01 well and the Bua Ban North A-02 well,” Coastal chief executive Randy Bartley said. “The Miocene had high levels of oil saturation, providing further confirmation of oil migration in this high potential section on the eastern side of the Songkhla basin,” Bartley said. “The M prospect is located at the southern limit of our existing legacy 3D survey. However, the 3D survey acquired last year extends much further to the south and a trend of Eocene closures has been identified over a 2000 acre area. Given our success in hydraulically fracturing the Eocene interval with similar characteristics on the western side of the basin we feel that we have identified a significant trend for hydraulic fracture development in the Eocene.”  (Source).

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