Coastal Energy Company
TSX VENTURE : CEN
AIM : CEO

Coastal Energy Company

October 15, 2009 08:21 ET

Coastal Energy Announces C$30 million Bought-Deal Financing

LONDON, UNITED KINGDOM--(Marketwire - Oct. 15, 2009) -

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

Coastal Energy Company (the "Company" or "Coastal") (TSX VENTURE:CEN)(AIM:CEO), an independent exploration and production company with assets in Thailand, announces that it 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.

Additional information, including the Company's complete competent person's report may be found on the Company's website at www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com.

This statement contains 'forward-looking statements' as defined by the applicable securities legislation. Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas price forecasts and similar matters are based on current data and information and should be viewed as forward-looking statements. Such statements are not guarantees of future results and are subject to risks and uncertainties beyond Coastal Energy's control. Actual results may differ substantially from the forward-looking statements.

These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Coastal Energy Company
    Randy L. Bartley
    Chief Executive Officer
    +1 (713) 877-6705
    or
    Coastal Energy Company
    William C. Phelps
    Chief Financial Officer
    +1 (713) 877-6727
    investor@CoastalEnergy.com
    www.CoastalEnergy.com
    or
    Strand Partners Limited (Nominated Adviser)
    Rory Murphy
    +44 (0) 20 7409 3494
    or
    Thomas Weisel Partners (Broker)
    Paul Colucci
    +44 (0) 20 7877 4300
    or
    Macquarie Capital (Europe) Limited (Broker)
    Majid Shafiq
    +44 (0) 20 7355 5800
    or
    Buchanan Communications
    Tim Thompson
    +44 (0) 20 7466 5000
    or
    Buchanan Communications
    Catherine Breen
    +44 (0) 20 7466 5000
    or
    Buchanan Communications
    Katharine Sutton
    +44 (0) 20 7466 5000