Coastal Petroleum Company Continues Completion Efforts on Shallow Gas Prospect Well and Announces Plansadmin
October 24, 2008 Filed Under: Oil and Gas
Phillip Ware, President and Chief Executive Officer of Coastal Caribbean Oils & Minerals, Ltd. , announced today that the Company’s wholly owned subsidiary, Coastal Petroleum Company, and Western Standard Energy Corp. are continuing completion efforts on the shallow gas prospect well drilled last year on Coastal’s Valley County, Montana Leases. The Company also announced the resignation of two directors and plans for the first half of 2009.
The Federal 1-19 Well was drilled to 1,121′ last year and confirmed that the 34,000-acre Starbuck East Prospect was indeed a structural high. Initially, completion work was performed in two stages and it will proceed to the third stage as soon as equipment is available, expected to be prior to the end of November, weather permitting. The third stage will include stimulation of the well which is a common procedure in completing oil and gas wells. After completion the well will be tested. Western Standard has a 100% working interest in the well and Coastal, its operating partner, has a 20% back-in working interest after payout.
According to an engineering report, written by a third party consulting geologist on February 2, 2005, and later confirmed in September, 2007, the Starbuck East shallow gas prospect is estimated to be a 34,000-acre closure, and could allow for around 600 wells to be drilled with 80-acre spacing. The same report has estimated potential recoverable resources to be approximately 220 BCF of gas from two zones. The well proposed by the geologist report to confirm the structure and test for gas was drilled as the Federal 1-19 well. The Starbuck East shallow gas assembly is located approximately 8 miles directly to the north of the Northern Border Pipeline, which runs from Alberta, Canada to serve the Chicago market.
Mr. Ware also announced that Dr. Anthony Randazzo and Mr. Matthew Cannon have resigned as directors of Coastal Caribbean. Their decision to resign was based upon personal circumstances and was not based upon any disagreement with the Company or its management on any matter relating to the Company’s operations, policies, or practices. The Company is grateful for the services that Dr. Randazzo and Mr. Cannon have provided as directors over the last three years.
Coastal has made plans to drill a Red River Formation development prospect (11,500′) and three of its Lodgepole Reef prospects (9600′) in Slope County, North Dakota during the first half of 2009, if the capital funding for $9,500,000 being arranged is completed. While the Montana programs must be shut in over the winter, the North Dakota wells can be drilled and completed during the winter with the arranged funding.
Now in its 56th year, Coastal Caribbean Oils & Minerals, Ltd., is engaged in the exploration for and development of oil and gas reserves through its wholly owned subsidiary, Coastal Petroleum. Coastal Petroleum’s principal assets are its cash and its non-producing oil and gas leases within the Williston Basin, covering approximately 8,500 net acres in North Dakota and approximately 124,000 net acres in Montana.