Coastal Energy Co.
AIM : CEO
TSX VENTURE : CEN

Coastal Energy Co.

January 09, 2008 02:00 ET

Coastal Energy Announces Closing of Equity Financing

LONDON, UNITED KINGDOM--(Marketwire - Jan. 9, 2008) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES
Coastal Energy Company (the "Company") (TSX VENTURE:CEN)(AIM:CEO), an independent exploration and production company with assets in South-East Asia, is pleased to announce, it has today completed its public offering of 16,445,000 common shares (the "Offering Shares") of the Company at a price of C$3.50 per common share, raising gross proceeds of C$57,557,500 (the "Offering"). Macquarie Capital Markets Canada Ltd. ("Macquarie") acted as lead underwriter of a syndicate of underwriters (the "Underwriters") which included Macquarie and Westwind Partners Inc. in respect of the offering. After closing of the Offering, the Company has 93,428,222 common shares issued and outstanding. The closing of the Offering included the closing of the over- allotment option of 2,145,000 common shares (the "Over-Allotment Shares") that was exercised by the Underwriters.

The Offering Shares will commence trading on TSX-V immediately, and admission of the Offering Shares to trading on AIM has been obtained, with the exception of the Over-Allotment Shares, which will commence trading on the AIM at 8:00 am UK time on 9 January 2008.

The Company expects to use the majority of the funds to accelerate development, appraisal and exploration work in the G5/43 block in the Gulf of Thailand. Coastal owns 100% of the block and has commenced development work on two previously discovered oil fields.Information concerning the Offering and the use of proceeds is contained in the Company's short form prospectus dated 28 December 2007, which is available under the Company's profile at www.sedar.com or on the Company's website at www.CoastalEnergy.com.

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
    Frank Inouye
    Chief Executive Officer
    +44 (0) 1483 549 549
    or
    Coastal Energy Company
    William C. Phelps
    Chief Financial Officer
    (713) 877-6727
    Email: investor@coastalenergy.com
    Website: www.CoastalEnergy.com
    or
    Bell Pottinger Corporate & Financial
    Ann-Marie Wilkinson / Nick Lambert / Rosanne Perry
    +44 (0) 20 7861 3232
    or
    KBC Peel Hunt Ltd (Nominated Adviser)
    Jonathan Marren / Matt Goode
    +44 (0) 20 7418 8900