Coastal Energy Co.
AIM : CEO
TSX VENTURE : CEN

Coastal Energy Co.

December 11, 2007 08:37 ET

Coastal Energy Announces Bought Deal Financing

LONDON, UNITED KINGDOM--(Marketwire - Dec. 11, 2007) -

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 that it has entered into an agreement with Macquarie Capital Markets Canada Ltd. (the "Lead Underwriter") to sell, on a "bought-deal" basis, 14,300,000 common shares at a price of C$3.50 per common share for gross proceeds of approximately C$50.1 million (the "Offering"). The Company will grant the Lead Underwriter an option to purchase an additional 2,145,000 common shares exercisable at a price of C$3.50 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 C$7.5 million for total gross proceeds of approximately C$57.6 million. The offering is scheduled to close on or about January 8, 2008.

The Company plans to use the net proceeds of the Offering to fund its offshore development opportunities and for general corporate purposes.

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(ii)

- 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

(ii)BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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