Coastal Energy starts Songkhla oil production

Coastal Energy Co. has begun production from a mobile offshore production unit in Songkhla field in the Gulf of Thailand following delays caused by poor weather in January.

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 6 -- Coastal Energy Co. has begun production from a mobile offshore production unit (MOPU) in Songkhla field in the Gulf of Thailand following delays caused by poor weather in January.

The field is producing 11,000 b/d from the Songkhla A-01 and A-03 wells. Coastal Energy used a MOPU different from the originally contracted unit, which had been damaged by the weather. Production from the Songkhla A-07 exploration well is scheduled for mid-March and will be tied in.

Randy Bartley, president and chief executive officer of Coastal Energy said, "The Songkhla wells' production rates are exceeding our original estimates. Our combined onshore and offshore production is now [about] 12,800 boe/d. We currently plan to build our liquidity position and commence another phase of drilling later in 2009. However, we have no related capital expenditures committed at this time."

Last December Coastal Energy successfully completed two wells on Block G5/43, which ensured an average oil production of 9,000 b/d from Songkhla field (OGJ Online, Dec. 31, 2008).

Coastal Energy, the sole operator of the block, said it has identified numerous undrilled prospects along the northwest margin of the Songkhla basin.

Contact Uchenna Izundu at uchennai@pennwell.com.

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