Coastal Energy Secures Bought-Deal Financing

Coastal has entered into an agreement with a syndicate of underwriters co-led by Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc. and includes Paradigm Capital Inc., RBC Capital Markets, and CIBC World Markets (collectively the "Underwriters" or "Syndicate"), whereby the Underwriters have agreed to purchase, on a bought deal basis, 6,000,000 common shares of Coastal Energy at Cdn$5.00 per common share ("the Offering") to raise gross proceeds of Cdn$30,000,000. The Company will also grant the Underwriters an option to purchase an additional 900,000 common shares exercisable at a price of Cdn$5.00 per common share for a period of 30 days from the closing date (the "Over-allotment Option"). If the Over-allotment option is exercised in full, additional gross proceeds will be approximately Cdn$4,500,000 for total gross proceeds of Cdn$34,500,000. The Offering is scheduled to close in November 2009.

The Company will use the proceeds of the Offering for general corporate purposes.