Coastal Energy Announces Closing of Equity Financing

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

    AIM: CEO
    TSX-V: CEN

VANCOUVER, Nov. 5 /CNW/ - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in Thailand, announces that it has completed its previously announced public offering of common shares (the "Offering"). The underwriting syndicate exercised the full over-allotment option resulting in the issuance by Coastal of 6,900,000 common shares (the "Offered Shares") for gross proceeds of C$34,500,000. Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc. acted as co-lead underwriters of a syndicate which also included Paradigm Capital Inc., RBC Dominion Securities Inc., and CIBC World Markets Inc.

The Company expects to use the net proceeds of the Offering to fund further development of its assets in the Gulf of Thailand, for working capital and to reduce short-term debt.

After closing of the Offering, the Company will have 106,387,299 common shares issued and outstanding. The Offered Shares will commence trading on the TSX-V immediately, and admission of the Offered Shares to trading on AIM will take place at 7:00 am (GMT) on 6 November 2009.

Information concerning the Offering and the use of proceeds is contained in the Company's short form prospectus dated October 30, 2009, 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.

For further information: Enquiries: Coastal Energy Company: Randy L. Bartley, Chief Executive Officer, [phone]; William C. Phelps, Chief Financial Officer, [phone]; Email: [e-mail]; Strand Hanson Limited (Nominated Adviser): [phone], Rory Murphy, Paul Cocker; Thomas Weisel Partners (Broker): [phone], Paul Colucci; Macquarie Capital (Europe) Limited (Broker): [phone], Ben Colegrave, Paul Connolly; Buchanan Communications: [phone], Tim Thompson, Catherine Breen, Katharine Sutton