/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR
THROUGH UNITED STATES NEWSWIRE SERVICES/
HOUSTON, May 28 /CNW/ - Coastal Energy Company ("the Company") (TSX-V:
CEN, AIM: CEO), an independent exploration and production company with assets
in Southeast Asia, announces that it has completed its public offering of
5,000,000 common shares (the "Offered Shares") of the Company at a price of
C$3.20 per Offered Share, raising gross proceeds of C$16,000,000 (the
"Offering"). Thomas Weisel Partners Canada Inc. and Paradigm Capital Inc.
acted as co-lead underwriters of a syndicate which also included Canaccord
Capital Corporation, Macquarie Capital Markets Canada Ltd., Tristone Capital
Inc., and CIBC World Markets.
The Underwriters have been granted an over-allotment option to purchase,
on the same terms, up to an additional 750,000 common shares. This option is
exercisable, in whole or in part, by the underwriters, in their sole
discretion, at any time before June 26, 2009. Additional gross proceeds of
Cdn$2.4 million will be realized, should the over-allotment option be
exercised in full.
The Company expects to use the majority of the proceeds for general
corporate purposes and debt reduction.
After closing of the Offering, the Company has 98,630,720 common shares
issued and outstanding. The Offered Shares will commence trading on TSX-V
immediately, and admission of the Offered Shares to trading on AIM will take
place at 8.00 am (BST) on 29 May 2009.
Information concerning the Offering and the use of proceeds is contained
in the Company's short form prospectus dated May 21, 2009, which is available
under the Company's profile at www.sedar.com or on the Company's website at
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:
For further information: Enquiries: Coastal Energy Company, Randy L.
Bartley, Chief Executive Officer, (713) 877-6705; William C. Phelps, Chief
Financial Officer, (713) 877-6727, Email: investor@CoastalEnergy.com; Strand
Partners Limited (Nominated Adviser), Rory Murphy, +44 (0) 20 7409 3494;
Thomas Weisel Partners (Broker), Paul Colucci, +44 (0) 20 7877 4300; Tristone
Capital Inc. (Broker), Majid Shafiq, +44 (0) 20 7355 5800; Bell Pottinger
Corporate & Financial, Nick Lambert, Rosanne Perry, +44 (0) 20 7861 3232