Oil and gas exploration and production company Coastal Energy Co (LON:CEO) announced today an update on their Thai prospects, Songkhla B-02 and Songkhla A-04.
Although the Songkhla B-02 reportedly reached a depth of 3,375 metres and encountered 12 feet of net pay in the lower Oligocene reservoir, the findings were reportedly not substantial enough to justify further standalone development. The possibility of reaching the reservoir via a high angle well from Songkhla A will be investigated at a later date, the company said. As such the existing Songkhla B well is to be abandoned, and the rig moved to the Benjarong prospect.
Work at the Songkhla A-04 well is now complete and it is producing approximately 3,000 barrels of oil per day. A workover has started at the Songkhla A-03 well, which the company anticipates will return to production by the end of the week. The same goes for Songkhla A-01 the report said. Overall production at the Songkla A prospect is currently 8,000 barrels per day and the combined onshore and offshore production for Coastal is on average 10,000 barrels per day.
Randy Bartley, Chief Executive Officer of Coastal Energy, commented:
"The results of the Songkhla B-02 sidetrack confirm the existence of a hydrocarbon trap with good porosity and permeability. Although too thin for a standalone development, drilling from the Songkhla A structure could make this discovery commercial. We will evaluate this option at a later date when we return to Songkhla A for future development work. We expect to spud our first Benjarong exploration well within the next two weeks. Workover operations at Songkhla A are progressing as planned and we have restored production from the A-04 well. We have almost completed the pump replacement on the A-03 well and will then begin the workover of the A-01."
Coastal Energy is an international exploration and production company focused on Southeast Asia. The Company's current operations are based in Thailand where it has production from the onshore Phu Horm gas field - producing approximately 12 million cubic feet of gas per day - and development opportunities in the Gulf of Thailand.
You can read more about Coastal Energy Company here
