Coastal Energy (LON:CEO) has released details of an interim reserves evaluation by independent assessors RPS of its onshore and offshore reserves in Thailand.
RPS’s report was prepared to incorporate Coastal’s drilling results at Bua Ban North & South in 2012 as well as information from core analyses which were completed after an earlier RPS published in March 2012.
Offshore Proved reserves (1P) increased by 30% to 81.0 million barrels and offshore Proved plus Probable reserves (2P) increased by 60% to 127.7 million barrels. Total company Proved reserves (1P) increased by 26% to 87.9 million barrels of oil equivalent (mmboe) and total company Proved plus Probable reserves (2P) increased by 45% to 149.1 mmboe.
Separately, in an operations update, Coastal said that two horizontal development wells and two water injection wells had been drilled at Bua Ban North. The two horizontal wells are producing approximately 1,800 barrels of oil per day (bopd) each. Current offshore production is 22,500 bopd, with total company production averaging 24,500 boepd.
The lack of aquifer support on the western side of the field had caused the company to shut in production from three of the existing wells (Bua Ban North A-01, A-03 and A-11). Now that water injection has been established, the company will begin producing from these three wells again once pressure rebuilds (expected to be in approximately 30 days).
The rig is currently undergoing regulatory inspections and will spud the Songkhla J Buried Hill prospect following completion, which is expected next week.
Coastal has purchased the production facilities at Bua Ban North A, which will reduce its lease operating costs going forward as well as provide tax advantages. This brings the number of owned mobile offshore production units (MOPUs) to three.
Randy Bartley, the president and chief executive of Coastal, said: “We are extremely pleased with the results of the interim reserves evaluation by RPS. Bua Ban North continues to surprise to the upside. The core analysis gave us a lot of valuable information about the reservoir and helped us to better formulate our field wide development plan. We are looking to contract a second rig so we can execute the Bua Ban North development while continuing our exploration program and expansion into Malaysia.
“Drilling the much needed water injectors will help to bring production from Bua Ban North back up to higher levels. We are already seeing increased rates from the Bua Ban North A-08 well due to the pressure reinjection. We expect to see benefits at the remaining wells on the western flank in the coming month as the water injection brings pressures up throughout the western side of the reservoir and we begin producing from the remaining three producers on that side.
“The Songkhla J exploration prospect is a pre-Tertiary objective approximately 2.5 kilometres north of the discovery well at Songkhla H. The well is expected to spud later this week and will be drilled to a depth of 6,700 feet. We have also commenced the planned 3D seismic acquisition over Block G5/43.”
