Coastal Energy Updates Southeast Asia Operation

Coastal Energy's Sinphuhorm East-1 well (SPHE-1) has been recently spud in the L15/43 Block, onshore Northeast Thailand. The objective of SPHE-1 is to test a possible eastern extension of the natural gas producing Sinphuhorm field into L15.

The primary target of SPHE-1 is the Pha Nok Khao (PNK) carbonates, in the upper Permian formation, from which the Sinphuhorm field is currently producing approx. 110.00mmcfd.

Coastal Energy has a 39% participating interest in L15 through its part ownership of the APICO joint venture.

"We believe that the Sinphuhorm East-1 well can demonstrate the continued potential for natural gas onshore, Northeast Thailand. Any discovery there could swiftly be marketed along with the existing Dong Mun-ST3 resource in L27/43. So far this year we have realized $8.32/mmbtu from Sinphuhorm field and are therefore eager to explore for and market any gas volumes we may discover in addition to Dong Mun. Thailand's increasing reliance on natural gas imports should maintain strong demand for any and all domestic gas resources," Randy Bartley, President & CEO of Coastal Energy said.