Songkhla A

Block G5/43: Songkhla A Field

The Songkhla A field was the first field developed by the Company beginning in 2008. The Songkhla A Field has been developed in three phases. Wells A-1, A-3 and A-7 were drilled first and were producing at year-end 2008. Wells A-2, A-4 and A-8 were next to be drilled and placed on production in October and November 2009. These wells further delineated the Main Fault block and adjacent reservoirs. In late 2010, wells A-9, A-11 and A-12 ST were drilled, which resulted in the discovery of three new Oligocene reservoirs and one new Eocene reservoir to the east of established production. These new wells were producing at the start of 2011. There was no drilling during 2011 while the rigs under contract concentrated on the discovery and appraisal of the Bua Ban North Field (Songkhla D and E).

A six to eight well drilling campaign targeting further development, appraisal, exploration and water injection activity is planned for the second half of 2012. The Company announced that the A-10 well, the first well in this drilling program, discovered a record amount of net pay for the Songkhla basin in the Lower Oligocene interval.  Significantly, as part of this campaign, the Company plans to test the NE reservoir which currently has a significant volume of Prospective Resources.

As of September 2012, the field was producing approximately 3,500 bopd.  At March 31, 2012 2P reserves at Songkhla A were 11.7 Mmbbls per the Company’s third party interim reserves evaluation performed by RPS Energy Ltd.  Furthermore, management estimates the field contains 89 Mmbbls of prospective resources.

History of the Songkhla A Field

The Songkhla field was originally discovered in 1988 with the drilling of the Songkhla #1 well. The well encountered oil shows in the Lower Oligocene formation and tested between 900 – 1500 bopd. Two further exploration wells were drilled in the early 1990’s. There was no further activity at Songkhla until Coastal’s 2008 drilling campaign.