Coastal Energy Company Grants Stock Options

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

THROUGH UNITED STATES NEWSWIRE SERVICES/

    
    AIM: CEO
    TSX-V: CEN
    

HOUSTON, Dec. 3 /CNW/ - Coastal Energy Company (the "Company") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in South-East Asia, announces that it granted a total of 2,606,900 incentive stock options to directors, officers, employees and contractors of the Company, pursuant to the Company's Stock Option Plan on December 1, 2009. These options are exercisable at a price of Cdn $5.13 per share, vest over a period of three (3) years and expire five (5) years from the date of award. The following director and officers were granted the following options.

    
                                 Number of Options  Total Options Outstanding
    Director / Officer               This Grant              After This Grant
    -------------------------------------------------------------------------
    Randy L. Bartley                  1,100,937                    2,880,937
    William C. Phelps                   367,531                    1,234,531
    John Griffith                       261,194                      679,194
    Stephen M. Holder                    74,627                      458,627
    Jerry A. Moon, Jr.                  141,791                      314,791
    All other directors and
     officers                            44,776                    2,344,776
                                ---------------------------------------------
      Subtotal all directors
       and officers                   1,990,855                    7,912,855
    All other employees and
     contractors                        616,045                    2,928,639
                                ---------------------------------------------
      Total all options               2,606,900                   10,841,494
                                ---------------------------------------------
                                ---------------------------------------------
    

Additionally, the Company announces that on December 1, 2009 a change was made to the structure of the share transfer which was announced November 4, 2009. The 1,000,000 common shares referred to in the announcement were transferred directly to the beneficial owners rather than to CEC Ventures, L.P. There were no changes to the beneficial ownership amounts.

As at December 3, 2009 the Company had 107,062,456 shares of common stock issued and outstanding.

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: [email protected]; Strand Hanson Limited (Nominated Adviser): Rory Murphy, Paul Cocker, [phone]; Thomas Weisel Partners (Broker): Paul Colucci, [phone]; Macquarie Capital (Europe) Limited (Broker): Ben Colegrave, Paul Connolly, [phone]; Buchanan Communications: Tim Thompson, Catherine Breen, Katharine Sutton, [phone]