SOURCE: Coastal Energy Company

Coastal Energy Company

September 27, 2010 16:30 ET

Coastal Energy Announces Closing of Senior Secured Revolving Credit Facility

HOUSTON, TX--(Marketwire - September 27, 2010) - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO), an independent exploration and production company with assets in Thailand, announces the closing of a new borrowing base credit facility with BNP Paribas and Commonwealth Bank of Australia.

The $80MM facility, led by BNP Paribas, is secured by the Company's 12.6% interest in the Sinphuhorm gas field onshore Thailand and the Songkhla field in the Gulf of Thailand. The proceeds of the initial drawdown were used to repay amounts outstanding under the Company's previous debt agreements. Subsequent drawings will be used to fund development of the Company's offshore assets. 

Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"We are pleased to announce the closing of this new credit facility. It will give us the financial flexibility to continue developing our Gulf of Thailand assets while evaluating other opportunities to redeploy capital."

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.

This news release is not for dissemination in the United States or through United States newswire services.

Contact Information

  • Enquiries:
    Coastal Energy Company
    Randy L. Bartley
    Chief Executive Officer
    +1 713 877 6705
    William C. Phelps
    Chief Financial Officer
    +1 713 877 6727
    Email: Email Contact

    Strand Hanson Limited (Nominated Adviser)
    +44 (0) 20 7409 3494
    Rory Murphy
    Paul Cocker

    Stifel Nicolas Weisel (Broker)
    +44 (0) 20 3205 3615
    Paul Colucci

    Macquarie Capital (Europe) Limited (Broker)
    +44 (0) 20 3037 2000
    Ben Colegrave
    Paul Connolly

    Buchanan Communications
    Tim Thompson
    +44 (0) 20 7466 5000
    Katharine Sutton
    Ben Romney