Coastal Energy Announces Closing of Equity Financing

    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR
    THROUGH UNITED STATES NEWSWIRE SERVICES/

    AIM: CEO
    TSX-V: CEN
    
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<p><location>VANCOUVER</location>, <chron>Nov. 5</chron> /CNW/ - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in <location>Thailand</location>, announces that it has completed its previously announced public offering of common shares (the "Offering"). The underwriting syndicate exercised the full over-allotment option resulting in the issuance by Coastal of 6,900,000 common shares (the "Offered Shares") for gross proceeds of C$34,500,000. Macquarie Capital Markets <location>Canada</location> Ltd., Canaccord Capital Corporation and <person>Thomas Weisel</person> Partners <location>Canada</location> Inc. acted as co-lead underwriters of a syndicate which also included Paradigm Capital Inc., RBC Dominion Securities Inc., and CIBC World Markets Inc.</p>
<p>The Company expects to use the net proceeds of the Offering to fund further development of its assets in the Gulf of <location>Thailand</location>, for working capital and to reduce short-term debt.</p>
<p>After closing of the Offering, the Company will have 106,387,299 common shares issued and outstanding. The Offered Shares will commence trading on the TSX-V immediately, and admission of the Offered Shares to trading on AIM will take place at <chron>7:00 am (GMT</chron>) on <chron>6 November 2009</chron>.</p>
<p>Information concerning the Offering and the use of proceeds is contained in the Company's short form prospectus dated <chron>October 30, 2009</chron>, which is available under the Company's profile at <a href="http://www.sedar.com">www.sedar.com</a> or on the Company's website at <a href="http://www.CoastalEnergy.com">www.CoastalEnergy.com</a>.</p>
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<p>These securities have not been registered under <location>United States</location> Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the <location>United States</location> or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.</p>
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For further information: Enquiries: Coastal Energy Company: Randy L. Bartley, Chief Executive Officer, [phone]; William C. Phelps, Chief Financial Officer, [phone]; Email: [email protected]; Strand Hanson Limited (Nominated Adviser): [phone], Rory Murphy, Paul Cocker; Thomas Weisel Partners (Broker): [phone], Paul Colucci; Macquarie Capital (Europe) Limited (Broker): [phone], Ben Colegrave, Paul Connolly; Buchanan Communications: [phone], Tim Thompson, Catherine Breen, Katharine Sutton