Thailand Onshore
Coastal has established an enviable acreage position in the Khorat Plateau with interest in approximately 12,000 square kilometres of producing and undeveloped acreage. The company’s interest in the area is held through a shareholding in APICO LLC., a US limited liability company. Coastal is the largest shareholder of APICO with a 36.1% interest. Coastal holds a net 12.6% interest in the Phu Horm gas field which is currently producing in the range of 90 mmcfd-105 mmcfd from three wells. In addition, APICO operates three exploration licences: L15/43 (Coastal net 36%) which surrounds the Phu Horm production licenses; L27/43 (Coastal net 36%) and L13/48 (Coastal net 21.7%) both of which contain drilled gas discoveries. Contingent resources in the onshore assets as estimated in an independent engineering report prepared by Huddleston and Co. dated April, 2008 are as high as 7.2 tcf.
First Gas Flare at Phu Horm Gas Field
Phu Horm Gas Field (Blocks EU1, E5N) – The Phu Horm Gas field is reservoired in a fractured Permian carbonate and commenced production in November 2006. Proven reserves for the field are in the order of 411bcf with probable reserve adding an additional 460 bcf. The proven reserve figure only reflect the amount of gas reserves currently under contract. The Phu Horm gas is sold to PTT Public Company under a 15 year gas sales agreement. The gas provides feedstock to the 750 megawatt Nam Phong power station located approximately 62 kilometres south of the field. Currently, production is averaging 86.5 MMcf/d.
Block L15/43 – This block which is 3,701 square kilometers surrounds the Phu Horm production licence and is 100% owned by APICO. The SPH-1 well, an exploration well designed to test the southern extension of the Phu Horm gas field, commenced drilling in mid February 2008 and reach a total depth of 3,229 metres in late April 2008. Despite numerous gas shows while testing the well flowed at sub-commercial rates and was suspended in early May 2008.
In November 2007, the Phu Horm-10 well located on the Phu Horm
gas field, northeast Thailand, was brought into production. The
PH-10 well was drilled in September 2007 to support the three
existing producing wells; PH-3, PH-4, PH-5.
Block L27/43 – The L27 block is located southeast
of the Phu Horm Gas field and contains the undeveloped Dong Mun gas
field. The block is 3,948 square kilometres and is 100% owned by
APICO. Regional and semi-detailed 2D seismic was acquired on the
block in early 2006 and the integration of the new data has
resulted in a remapping and further delineation of the Dong Mun
field. The Dong Mun-3 well which commenced drilling in November
2007 has been completed at a total depth of 3,127 meters; gas shows
were found in several zones, the most significant shows were
encountered in the Jurassic and Triassic sands above the main
reservoir target, the Pha Nok Khao ("PNK") formation. The PNK was
encountered approximately 90 meters lower than expected and a
preliminary evaluation of the wire line log data suggests the
reservoir has low porosity and permeability at this location.
Although gas was recorded over the interval, no tests were
conducted due to the lack of suitable testing equipment. It is
anticipated that such tests will be conducted later in
2008.
Block L13/48 – This block is located directly
east of the L15/43 block and covers an area of 3,934 square
kilometres. L13 was awarded in 2006 to a consortium consisting of
APICO (60% equity and Operator) and Pearl Oil (40%). The block
contains the Si That gas discoveries and in Q4, 2007 a
semi-detailed 2D seismic programme was acquired in the block.
The Si That -3 appraisal well is scheduled for drilling in late
2008.
