Coastal Energy, an independent exploration and production company with assets in South-East Asia, announces that drilling of the South Phu Horm-1 ("SPH1") has now commenced. The well is located in Block L15/43 which surrounds the Phu Horm gas field and will be drilled to a total estimated depth of 2462 metres, sub-sea.
SPH1 is the second of a two well drilling programme operated by APICO (Korat) Limited who have a 100% interest in the concession. Coastal is APICO's largest shareholder with 36.1 percent interest. The well, which is being drilled by the Ensign No. 16 rig, will test the possible extension of the Phu Horm gas field further south, outside the current production area into Block L15/43 which is 100% owned by APICO.
The Phu Horm field came on stream in November, 2006 and is currently producing between 90 - 105 million cubic feet of gas per day. APICO has a 35 percent interest in the Phu Horm field
Coastal's Chairman, Frank Inouye commented, "South Phu Horm-1 is a key well in the APICO onshore drilling portfolio for 2008. The well not only has the potential to confirm the extension of the Phu Horm gas field south, into acreage that is 100% owned by APICO, but more importantly, verify significant additional reserves for the field."