What is believed to be the first horizontal well drilled with directionally controlled coiled tubing recently was completed in the Austin Chalk formation. An existing well was sidetracked out of 4 1/2-in. casing with a conventional whipstock. An average build rate of 15-degrees/ 100 ft was achieved in the curve, and a 1,458-ft vertical section was drilled with 2-in. coiled tubing, downhole mud motors, wireline steering tools, a mechanical downhole orienting tool, and 3 7/8-in. bits. This paper discusses the orienting and directional tools and techniques developed during this operation. It also describes improvements made for the second well.