COSTA announces new financing

    CALGARY, Dec. 27 /CNW/ - COSTA Energy Inc. ("COSTA" or the "Company")
(TSX Venture Exchange: COE) is proceeding with a non-brokered private
placement of up to 1,000,000 units ("Units") at $1.00 per unit, consisting of
$1.00 principal amount of secured, non-convertible debentures ("Debentures")
and 0.67 of one common share purchase warrant ("Warrant"). Each one Warrant
will entitle the holder thereof to purchase one common share at a price of
$0.15 per share until December 31, 2008. Closing of this proposed financing is
anticipated to occur on or about January 15, 2008. Gross proceeds will be
$1.0 million if the issue is fully subscribed, 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 TSXV 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:

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