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

HOUSTON, Jan. 8 /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 was notified today of the following sales transactions of ordinary shares in the Company:

    
                                                                       % of
                                           Shares                      Total
                            Transaction     this             Shares  Outstan-
    Shareholder     Title       Date    Transaction  Price    Owned   ding*
    -------------------------------------------------------------------------
    William C.
     Phelps           CFO   Jan. 6, 2010   50,000  C$ 6.00  1,210,000  1.12%
    All other
     Officers                                               1,069,500  0.99%
    -------------------------------------------------------------------------
    Total all
     Officers                                               2,279,500  2.11%

    Forrest E.
     Wylie       Director   Jan. 6, 2010  150,000  C$ 6.00  1,100,000  1.02%
    All other
     Directors                                              1,114,475  1.03%
    -------------------------------------------------------------------------
    Total all
     Directors                                              2,214,475  2.05%

    * Based on total common stock currently issued and outstanding of
        108,276,644 shares.
    

These transactions were undertaken as part of the above individuals' personal income tax planning.

Additional information, including the Company's complete competent person's report may be found on the Company's website, www.CoastalEnergy.com or may be found in documents filed on SEDAR, www.sedar.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: [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]