Coastal Energy Co (LON:CEO) announced today an update of its operations in Thailand. The international exploration and production company with operations in Southeast Asia released a report today on its Thai assets; offshore production is averaging approximately 9,500bopd with a combined offshore and onshore production (from the Sinphuhorm gas field) of approximately 11,500boed.
The Songkhla A prospect has averaged approximately 7,100bopd for the first quarter of 2010 and at the Songkhla A-04 well, production has reportedly been impacted by downtime whilst a new submersible pump was being installed as well as downtime on the A-01 and A-03 wells while larger submersible pumps were being replaced.
The Company also announced that it has received government approval of its Environmental Impact Assessment for the Bua Ban field development, allowing it to proceed with development of the field later in 2010. At Phu Kheng-1, L27/43, in which Coastal holds a 36.1% working interest, the operator completed a hydraulic fracturing test targeting a shallower interval in the Phu Kradung sandstone than was previously tested. Despite the presence of gas saturation and porosity determined from wireline logs, the targeted interval did not flow after the frac operation. The partners in the block have agreed to plug and abandon the well. Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"I am delighted to announce that Coastal Energy has received government approval of its EIA for Bua Ban. This will allow us to proceed with the development of of this field in 2010 in line with expectations and unlock its 21.8 mmbbl of proved plus probable reserves. Despite delays caused by issues with some of the submersible pumps at Songkhla A, I am also pleased to report that production levels for the quarter were strong and Coastal is on track for a robust 2010."
