Coastal announces new discovery in Gulf of Mexico

The Coastal Corporation has announced that its exploration and production subsidiary, Coastal Oil & Gas Corporation, is a participant in a new gas discovery well in South Timbalier Block 290 in the Gulf of Mexico. The OCS G-16454 No. 1 Well is an exploratory well that was directionally drilled to 15,380 feet, with more than 150 feet of pay, and is located in 395 feet of water 100 miles south-west of New Orleans. After the production casing is set, completion of the well will await a pending review of development plans by Coastal and the other co-owners in the block. Coastal owns a 25 % working interest in the block. Cairn Energy USA, Inc., is the operator of the block and holds a 40 % working interest while Norcen Explorer Inc. holds a 35 % working interest in the block. Coastal and its co-owners also hold the same percentage interests in the adjoining blocks of South Timbalier 291 and Ewing Banks 782 and 783.