Costa releases 2007 third quarter results

    CALGARY, Nov. 26 /CNW/ - COSTA Energy Inc. ("COSTA" or the
"Company")(TSX Venture Exchange: COE) has released its financial and operating
results for the three and nine months ended September 30, 2007.


    Three months ended September 30, 2007
    Production and Prices
    Natural gas sales (mcf/d)                   355
    Oil and NGL sales (bbls/d)                   21
    Average daily sales 6:1 (boe/d)              80
    Average natural gas price ($/mcf)         $6.92
    Average oil  and NGL price ($/bbl)       $71.54

    Financial ($)
    Oil and gas revenue ($000's)               $362
    Net loss ($000's)                         $(579)
    Per share, basic and diluted             $(0.02)
    Weighted average basic and diluted   39,851,682
    Outstanding at period end            43,260,735

    COSTA had a net loss of $0.58 million for the three months ended
September 30, 2007, including a ceiling test impairment of $0.30 million. The
impairment was due to a lack of any reserve additions and reduced gas prices
in the October 1, 2007 price deck used to value reserves at September 30,
2007. COSTA had a deficit of $9.34 million and a working capital deficiency of
$0.96 million (including $883,000 principal amount of subordinated debentures)
at the end of the third quarter of 2007.
    COSTA has reduced its G&A, restricted its capital program and is looking
at a combination of property sales and/or other financings to continue to work
on its financial position.

    Costa has been marketing the sale of our Pembina and Veteran properties
and it is expected that a sale will be completed in the fourth quarter of this
year. The Company is negotiating a farm-out for the drilling of the three
wells at Alderson before the end of this year. A farm-out agreement is also
being negotiated on a prospect north of Edmonton that would be drilled in the
first quarter of 2008.
    The Company will continue to evaluate the sale of fully developed
properties; and the sale or farm-out of properties that are not consistent
with the Company's current conservative risk profile.

    About COSTA
    The 2007 third quarter report, which includes management's discussion and
analysis and financial statements, is available on and on the
Company's website at
    COSTA Energy Inc. is a Calgary based junior oil and gas company, which
explores for, develops, produces, and sells crude oil, natural gas liquids and
natural gas in Alberta and Saskatchewan.

    Forward-Looking Statements

    Certain information in this press release contains forward-looking
statements, including, without limitation, drilling plans, expected results
and certain expected expenses and costs in subsequent periods. These
forward-looking statements involve inherent risks and uncertainties, some of
which are beyond the Company's control, including but not limited to the
impact of general economic conditions, industry conditions, commodity price
volatility, currency fluctuations, environmental risks, competition, reserve
estimates, ability to access sufficient capital from internal and external
sources and industry regulation. The assumptions used in the preparation of
such information, although considered reasonable by COSTA at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those expressed in or implied by these forward-looking
statements. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as otherwise required by applicable
securities laws.

    Oil Equivalent Conversion

    Barrel of oil equivalent ("boe") amounts have been calculated using a
conversion rate of six thousand cubic feet of natural gas to one barrel of oil
and natural gas liquids equivalent. This ratio is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead or point of sale. Barrel of
oil equivalents may be misleading, particularly if used in isolation.

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

For further information:

For further information: Requests for information should be directed to:
Mr. Terry D. Brooker, President and Chief Executive Officer, COSTA Energy
Inc., (403) 206-3430, Email:

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