Coastal Energy Co.
AIM : CEO
TSX VENTURE : CEN

Coastal Energy Co.

November 26, 2007 09:30 ET

Coastal Energy Issues Phu Horm Gas Field Update

LONDON, UNITED KINGDOM--(Marketwire - Nov. 26, 2007) -

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

Coastal Energy (the "Company") (TSX VENTURE:CEN)(AIM:CEO), an independent exploration and production company with assets in South-East Asia, announces the Phu Horm-10 well ("PH-10") located on the Phu Horm gas field, northeast Thailand, has been brought into production.

The PH-10 well was drilled in September to support the three existing producing wells; PH-3, PH-4, PH-5. It has commenced production at 7-8 million cubic feet per day ("mmcfd"). Total production from the Phu Horm field is currently averaging 90 mmcfd.

Coastal's interest in the gas field is held indirectly through APICO LLC which retains a 35% equity share in the gas field. Coastal is APICO's largest shareholder with 36.1% interest.

Coastal's Chief Executive Frank Inouye commented:

"The Phu Horm field, which has been on stream for almost 12 months, continues to produce in line with expectations. The PH-10 well will ensure that the field has the capability to not only meet the current production demands, but any future increases."

Notes to Editors

Coastal Energy is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand.

- The Company specialises in identifying and developing under-exploited or "orphaned" or assets. Management has proven experience at identifying and unlocking value from overlooked, abandoned, low risk assets with proven hydrocarbon potential.

- This strategy has enabled the Company to assemble an asset base in Thailand that includes production of approximately 11.5 mmcf/d of gas under long term contract and offshore oil fields currently under development.

- Production growth over the next 12-18 months is expected to grow exponentially and proven, probable and possible reserves are 45.3 million barrels oil equivalents(i)(i).

- The Company's current assets include:



- Offshore Thailand

- 100% of block G5/43 - 3 successful appraisal wells drilled in
2005 / 2 additional discoveries on the block awaiting appraisal
/ untested exploration potential in Songkhla Basin - production
expected to commence Q1 2008

- Onshore Thailand

- 12.6% net interest in blocks EU1 and E5N which include the Phu Horm
gas field currently producing between 90 and 100 mmcf/d

- 36.1% net interest in block L15/43 surrounding the Phu Horm field
- 36.1% net interest in block L27/43 - containing the undeveloped
Dong Mun gas field
- 21.7% net interest in block L13/48 located adjacent to blocks L15/43
and L27/43, contains Si That discovery


For additional information, including the Company's complete competent person's report please visit www.coastalenergy.com.

(i)(i) Gas converted at 6 mcf / barrel oil equivalent

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