Coastal Energy Announces Insider Transaction

    
    /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>HOUSTON</location>, <chron>Oct. 29</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 was notified today of the following transaction of ordinary shares in the Company:</p>
<p>A partnership, <location>Thailand</location> Ventures L.P., holding 5,000,000 ordinary shares in the Company has been dissolved and pursuant to its liquidation, these shares were transferred to its owners. The cost basis of these shares to the owners is consistent with that of the cost basis to the partners' respective interests. The following table shows the distribution of these shares as well as the share ownership subsequent to this transaction.</p>
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                                                                       % of
                                                                       Total
                                  Transaction Shares this   Shares   Outsta-
      Shareholder      Title         Date     Transaction   Owned    nding*
    -------------------------------------------------------------------------
    William C.
     Phelps         CFO         Oct. 28, 2009  1,250,000   1,260,000   1.27%
    All other
     Officers                                                 42,000   0.04%
    -------------------------------------------------------------------------
    Total all
     Officers                                              1,302,000   1.31%

    Forrest E.
     Wylie          Director    Oct. 28, 2009  1,250,000   1,250,000   1.26%
    All other
     Directors                                               571,975   0.58%
    -------------------------------------------------------------------------
    Total all
     Directors                                             1,821,975   1.84%

    Oscar S.        Not
     Wyatt, Jr.      applicable Oct. 28, 2009  2,500,000  36,259,580  36.49%

    -------------------------------------------------------------------------

    * Based on total common stock currently issued and outstanding of
        99,380,720 shares.
    
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<p>Additional information, including the Company's complete competent person's report may be found on the Company's website, <a href="http://www.CoastalEnergy.com">www.CoastalEnergy.com</a> or may be found in documents filed on SEDAR, <a href="http://www.sedar.com">www.sedar.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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    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

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), Rory Murphy, Paul Cocker, [phone]; Thomas Weisel Partners (Broker), Paul Colucci, [phone]; Macquarie Capital (Europe) Limited (Broker), Ben Colegrave, Paul Connolly, [phone]; Buchanan Communications, Tim Thompson, Catherine Breen, Katharine Sutton, [phone]