Thailand Offshore
Coastal own 100% and operate block G5/43, an 8,500 square kilometer shallow water (less than 25m water depth) block in the south western portion of the Gulf of Thailand. The largest of the four basins, the Songkhla basin, located in the southern part of the block has been the focus of activity since the area was first explored over 20 years ago. The Company’s near term focus is on exploiting the value from four oil discoveries made between 1988 – 1996 when five exploration wells were drilled resulting in four oil discoveries. Coastal acquired the block from the government of Thailand in 2003 and in 2005 drilled an additional three wells on the Bua Ban field, one of the previously drilled discoveries. All three wells confirmed oil within the main Oligocene sandstone reservoir.
A 330 square kilometer high resolution 3D seismic survey acquired in early 2007 has enabled the Company to complete a detailed technical evaluation of the Bua Ban field and in addition, confirm drilling locations for several untested prospects including two unappraised discoveries Benjarong and Songkhla SW.
In November 2007 Coastal Energy entered into a 12 month contract with Swiber Offshore Drilling Singapore. The Company expects to use the Jack-Up-1 rig (“JU-1”) to drill approximately 16-20 wells in the block with drilling scheduled to commence in late Q2, 2008. Drilling with commence with three to four appraisal and production wells on the Bua Ban Field. These wells will target what is interpreted to be significantly thicker sections of the main Oligocene reservoir in previously undrilled areas that were identified with the high resolution 3D seismic survey. The wells will be tested using both natural flow and enhanced down-hole production pumps.
Proved and probable reserves for the main Bua Ban and Songkhla fields (excluding satellite prospects) are in the order of 13.2 mmboe and 4.5 mmboe, respectively according the an independent engineering report prepared by Huddleston and Company in early 2007.
Once testing is completed on the Bua Ban wells, the JU-1 will move to the Songkhla field where it will pre-drill four production wells. These wells will be suspended pending installation of the wellhead and production platforms which are expected to arrive in late Q3/early Q4. After development drilling in the Songkhla field, the rig will drill and test a number of exploration wells within close proximity to both the Songkhla and Bua Ban Fields. Eight Satellite prospects have been confirmed around the Songkhla field and if successful, can be tied back to the main production facilities.
In addition to the undeveloped discovered fields, the Company has also identified numerous undrilled prospects along the northwest margin of the Songkhla basin.
