Coastal Energy Closes Equity Financing

Coastal Energy has completed its previously announced public offering of common shares. The underwriting syndicate exercised the full over-allotment option resulting in the issuance by Coastal of 6,900,000 common shares for gross proceeds of C$34,500,000. Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc. acted as co-lead underwriters of a syndicate which also included Paradigm Capital Inc., RBC Dominion Securities Inc., and CIBC World Markets Inc.

The Company expects to use the net proceeds of the Offering to fund further development of its assets in the Gulf of Thailand, for working capital and to reduce short-term debt.

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 7:00 am (GMT) on November 6, 2009.