Coastal Energy Company, an independent exploration and production company with assets in Southeast Asia, announces that the Phu Kheng-1 exploration well on Block L27/43 located in the Khorat Basin in Northeast Thailand was spudded on July 2, 2009. The well is planned to be drilled to a total depth of 2,070 meters sub-sea and is expected to take approximately 40 days to drill on a dry-hole basis, with testing to be completed immediately if the well is successful. Coastal is the largest holder in Block L27/43 with a 36.1% net working interest.
The Phu Kheng-1 well will be targeting shallower Jurassic and Triassic gas shows seen in the Dong Mun 3 appraisal well. The Phu Kheng formation has mean gross prospective resources of 1.36 tcf per Huddleston & Co.'s reserves evaluation effective December 31, 2008, or 491 bcf net to Coastal. Following the drilling of the Phu Kheng-1 well, the rig will be mobilized and used to drill the Si-That 3 appraisal well on Block L13/48, in which Coastal has a net 21.7% working interest.
Randy Bartley, President and Chief Executive Officer of Coastal Energy commented:
"The Phu Kheng-1 well will be testing shallower Dong Mun gas shows in an optimal structural position. If successful, the well will add significant resources located adjacent to the existing infrastructure of the Sinphuhorm field. The resource potential of L27/43 could be significant enough to encourage further gas sales infrastructure investment in the Khorat Basin."