Coastal Energy Announces Insider Transaction

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

    AIM: CEO
    TSX-V: CEN
    
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<p><location>HOUSTON</location>, <chron>Oct. 15</chron> /CNW/ - Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in <location>Thailand</location>, announces that it was notified on <chron>October 15, 2009</chron> of the following purchase of ordinary shares in the Company:</p>
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    Directors             Title     Shares    Date(s) of    Price     Shares
                                   Purchased   Purchase                Owned
    -------------------------------------------------------------------------
    Bernard de Combret  Chairman of
                        the Board   158,716  Oct 13, 2009  CAD 4.9908 571,975
    All other directors                0                              142,500
    -------------------------------------------------------------------------
    Total all directors             158,716                           714,475
    
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<p>As of today, Mr. de Combret's holdings represent 0.58% of the total common stock issued and outstanding of 99,380,720 shares.</p>
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<p>Additional information, including the Company's complete competent person's report may be found on the Company's website, <a href="http://www.CoastalEnergy.com">www.CoastalEnergy.com</a> or may be found in documents filed on SEDAR, <a href="http://www.sedar.com">www.sedar.com</a>.</p>
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<p>These securities have not been registered under <location>United States</location> Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the <location>United States</location> or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.</p>
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    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): [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