COSTA announces revised financing



    CALGARY, Feb. 4 /CNW/ - COSTA Energy Inc. ("COSTA" or the "Company")
(TSX Venture Exchange: COE) announces that the terms of its debenture
financing announced December 27, 2007 have been amended. Gross proceeds, if
the issue is fully subscribed, have been increased from $1.0 million to
$1.2 million. The non-brokered private placement is now up to 1,200,000 units
("Units") at $1.00 per unit, each unit consisting of $1.00 principal amount of
secured, non-convertible debentures ("Debentures") and 0.67 of one common
share purchase warrant ("Warrant"). The exercise price for the Warrants has
been reduced from $0.15 to $0.10 per share and the term has been extended from
December 31, 2008 to June 30, 2009. Each Warrant will now entitle the holder
thereof to purchase one common share at a price of $0.10 per share until
June 30, 2009. Closing of this proposed financing is anticipated to occur on
or about February 15, 2008, and will be used to repay $883,000 of existing
debentures and for working capital purposes. The Warrants issued pursuant to
this private placement will be subject to a four month statutory hold period.
    Application has been made to the TSX Venture Exchange and both the
offering and the pricing of the warrants are subject to TSX Venture Exchange
approval.
    Management and directors are expected to subscribe for up to $500,000 of
this issue.

    COSTA is a Calgary based junior oil and gas company, which develops,
produces, and sells crude oil, natural gas liquids and natural gas in Alberta.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.





For further information:

For further information: Mr. Terry D. Brooker, President and CEO, COSTA
Energy Inc., (403) 206-3430, Email: tbrooker@costaenergy.com

Organization Profile

COSTA ENERGY INC.

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