Coastal Sees Robust Output Levels Offshore Thailand

Coastal's offshore production from Songkhla A averaged approximately 7,100 bbl/d for the first quarter of 2010. First Quarter 2010 offshore production was impacted by downtime on the Songkhla A-04 well while the submersible pump was being replaced as well as downtime on the A-01 and A-03 wells while larger submersible pumps were installed. Currently, Coastal's offshore production is averaging approximately 9,500 bbl/d. Combined with its onshore production from the Sinphuhorm gas field, total production is approximately 11,500 boe/d.

Bua Ban EIA

Coastal has received government approval of its Environmental Impact Assessment for the Bua Ban field development, allowing it to proceed with development of the field later in 2010.

Phu Kheng-1 (L27/43, Coastal 36.1% working interest)

The operator of onshore block L27/43 in northeastern Thailand completed a hydraulic fracturing test targeting a shallower interval in the Phu Kradung sandstone than was previously tested. Despite the presence of gas saturation and porosity determined from wireline logs, the targeted interval did not flow after the frac operation. The partners in the block have agreed to plug and abandon the well.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "I am delighted to announce that Coastal Energy has received government approval of its EIA for Bua Ban. This will allow us to proceed with the development of this field in 2010 in line with expectations and unlock its 21.8 mmbbl of proved plus probable reserves. Despite delays caused by issues with some of the submersible pumps at Songkhla A, I am also pleased to report that production levels for the quarter were strong and Coastal is on track for a robust 2010."