News

January 06, 2010

Coastal Energy Sees A Hiccup In Its Offshore Thailand Oil Output But Expects Its 10,000 bopd Target to Be Restored By End January 2010

Shares in Toronto (TSX) and London AIM listed Coastal Energy saw a very good rise during 2009, more than tripling from a low of 61 p to over 300p. The background is this: The company, which is focused on Southeast Asia generally and Thailand in particular, had some onshore gas production through its involvement in the Phu Horm gas field in north east Thailand. But it wanted to go for the bigger prize of oil.

In 2008 it achieved this ambition by revisiting an old Premier Oil discovery on the offshore Songkhla field in the G5/DA block in the Gulf of Thailand. Coastal now owns the licence. Songkhla was discovered by Premier back in 1968 when it tested 1,500 barrels of oil per day (boepd) from an 80 feet net oil column in the Lower Oligocene formation. In the economic conditions of the day it was deemed not worth exploiting but changes in the oil price have altered  all that.

Coastal duly...