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


Coastal Energy Company, (the "Company" or "Coastal") (TSX VENTURE:CEN)(AIM:CEO)
an independent exploration and production company with assets in South-East
Asia, announced today it has received government approval of the Production Area
Application ("PAA") for development of its Songkhla field in the Gulf of
Thailand.


The PAA was approved by the Department of Mineral Fuels, the governmental agency
responsible for Thailand's upstream petroleum industry, and covers an extended
area of approximately 75 square kilometers which includes not only the Songkhla
field, but several surrounding satellite features. The extended production area
is significant in that it enables the company to fully exploit the prospects
surrounding the primary Songkhla development without the need to apply for
additional government approvals. As approved, the production area contains
Proved, Probable and Possible reserves of 6.4 MMBO. It also contains eight
identified oil prospects with potential oil in place of over 200 MMBO. Songkhla
is expected to begin production in the fourth quarter of this year.


The Songkhla field is scheduled to commence production in Q4, 2008 with
production drilling expected to commence in August, 2008. Due to delays in the
arrival of the Swiber Jack Up-1 ("JU-1") rig, the Company has revised its
drilling programme to ensure first production from Songkhla is not affected by
the rig delay.


Commenting on the Company's announcement about the recent events in Thailand,
Coastal's Chief Executive, Randy Bartley said:


"The approval of the PAA for Songkhla area development is an important step in
the development of Coastal's first oil production from the Gulf of Thailand. We
are fortunate to have been granted a production area of this size because it
covers not only the proven Songkhla development, but also the eight identified
prospects. This will allow us to expedite the exploration and development of
these prospects and will significantly enhance the overall economics of the
project. We are very pleased with this outcome.


Due to the flexibility in our well scheduling, the JU-1 delay will not affect
our projected fourth quarter first production from the Songkhla development.
There will be sufficient time to pre-drill five to six development wells at
Songkhla prior to platform arrival in late September 2008. Drilling of the Bua
Ban appraisal wells is now scheduled to start in early 2009. Bua Ban has
sufficient proved reserves, without additional drilling, to justify proceeding
with platform and facility development. Drilling plans for the first nine Bua
Ban wells will be late first and early second quarter 2009 to allow sufficient
time to pre-drill the wells and to set platform and production facilities in
late second quarter 2009."


Notes to Editors

- Coastal Energy is an oil and gas exploration, development and production
company, with core assets onshore and offshore Thailand


- The Company specialises in identifying and developing under-exploited or
"orphaned" or assets. Management has proven experience at identifying and
unlocking value from overlooked, abandoned, low risk assets with proven
hydrocarbon potential


- This strategy has enabled the Company to assemble an asset base in Thailand
that includes production of approximately 11.5 mmcf/d of gas under long term
contract and offshore oil fields currently under development


- Production growth over the next 12 -18 months is expected to grow
exponentially and proven, probable and possible reserves are 45.5 million
barrels oil equivalents(i)


- The Company's current assets include:

- Offshore Thailand

-- 100% of block G5/43 - two oil fields currently under development with several
other appraisal and exploration opportunities. Production is expected to
commence Q4 2008


-- 100% of block G5/50 - within the boundaries of block G5/43 in the Ko Kra basin

- Onshore Thailand

-- 12.6% net interest in blocks EU1 and E5N which include the Phu Horm gas
field, which was producing in excess of 100 mmcf/d at the end of the first
quarter 2008.


-- 36.1% net interest in block L15/43 surrounding the Phu Horm field

-- 36.1% net interest in block L27/43 - containing the undeveloped Dong Mun gas
field


-- 21.7% net interest in block L13/48 located adjacent to blocks L15/43 and
L27/43, contains Si That discovery


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


(i) Per 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
equivalent (6:1). The term boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6mcf: 1bbl of oil is based upon an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.


Frank Inouye, Executive Chairman and Director of the Company, and a member of
the American Association of Petroleum Geologists, has reviewed the contents of
this announcement.


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.
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