LONDON (Thomson Financial) - Coastal Energy Co said the government of Thailand has approved th
e development plan for the Songkhla field, allowing the AIM-listed group to begin pumping oil from the field in the fourth quarter of 2008.
The Department of Mineral Fuels approved the project, which covers an area of 75 square kilometres, including the Songkhla field and surrounding satellite sites.
'The extended production area is significant in that it enables the company to fully exploit the prospects surrounding the primary Songkhla development without the need to apply for additional government approvals,' Coastal Energy said in a statement.
The area is believed to hold proved, probable and possible reserves of around 6.4 million barrels of oil. It also contains eight prospects with potential oil in place of over 200 million barrels.
Drilling is expected to start in August, with production still on course with plans to begin in the fourth quarter despite delays in the arrival of the rig, the company said, adding the drilling of the Bua Ban appraisal wells will start in early 2009.
COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.