News

February 16, 2010

Coastal Energy Has More Success With The Songkhla B-02 Drilling In The Gulf of Thailand After the Disappointment of The Previous B-01 Well

Is it second time lucky for Coastal Energy, the London AIM and Toronto TSX-V quoted group, with assets in Thailand? It seems so. The company has announced that the Songkhla B-02 well, on the company’s 100 per cent owned Block G5/43 in the Gulf of Thailand, reached a total measured depth of 9,606 feet (2,928 metres) and encountered 7 feet of net pay in the Lower Oligocene reservoir. A sidetrack well is being drilled targeting an area down the structure into a seismically identified thicker section of the reservoir. The B-02 sidetrack well will help further to define the field.

Last month we wrote the company announced disappointing results from the first exploration well on Songkhla B, Songkhla B-01. This was spudded early in January and was drilled to a total measured depth of 9,050 feet targeting multiple objectives to the east of the main north-south fault that bisects Songkhla B. Despite encountering oil bearing sands within the Lower Oligocene, a breaching of the trap resulted in only 10 feet of net pay. This was in stark contrast to the 90-150 feet of net Lower...