Coastal Energy Announces Successful Appraisal Well at Songkhla A

10 Sep, 2012 13:30 CET

Coastal Energy Company
Press release

Coastal Energy Announces Successful Appraisal Well at Songkhla A

HOUSTON, 2012-09-10 13:30 CEST (GLOBE NEWSWIRE) -- Coastal Energy Company (the
"Company" or "Coastal") (TSX:CEN) (AIM:CEO) announces the successful results of
the Songkhla A-10 well. 

The Songkhla A-10 well was drilled to a depth of 7,400 feet TVD and encountered
213 feet of net pay in the Lower Oligocene with 20% porosity. The gross oil
column in the well was approximately 550 feet thick. The A-10 well was drilled
into the same fault block as the A-12ST#1, which is the easternmost fault block
at Songkhla A. The A-12ST#1 originally tested at 3,500 bopd with 105 feet of
net pay. 

Randy Bartley, President & Chief Executive Officer, commented:

"The A-10 well result is outstanding. This well encountered a record amount of
net pay for the Songkhla basin with some of the best reservoir characteristics
we've seen in the Lower Oligocene interval. We estimate that this doubles the
volumetric estimates for this particular fault block. Production will be tied
in from this well shortly. The next well will test the fault block immediately
to the north and, if successful, could warrant an additional production
facility in this location to develop these two fault blocks." 

Randy Bartley, President and Chief Executive Officer of the Company and a
member of the Society of Petroleum Engineering and Jerry Moon, Vice President,
Technical & Business Development, a member of the American Association of
Petroleum Geologists, a Certified Petroleum Geologist and a Licensed
Professional Geoscientist in the state of Texas, have reviewed the contents of
this announcement. 

Additional information, including the Company's complete competent person's
report may be found on the Company's website at www.CoastalEnergy.com or may be
found in documents filed on SEDAR at www.sedar.com. 

The Coastal Energy Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10062 

This statement contains 'forward-looking statements' as defined by the
applicable securities legislation. Statements relating to current and future
drilling results, existence and recoverability of potential hydrocarbon
reserves, production amounts or revenues, forward capital expenditures,
operation costs, oil and gas price forecasts and similar matters are based on
current data and information and should be viewed as forward-looking
statements. Such statements are not guarantees of future results and are
subject to risks and uncertainties beyond Coastal Energy's control. Actual
results may differ substantially from the forward-looking statements. 


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