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


Coastal Energy Company ("the Company" or "Coastal Energy") (TSX
VENTURE:CEN)(AIM:CEO), an independent exploration and production company with
assets in Southeast Asia, announces that it has completed a successful flow test
of the Songkhla A-01 well. 


The Songkhla A-01 well was drilled to a total measured depth of 9,025 feet
(2,750 meters) and logged approximately 125 feet (41 meters) of net pay with 20%
porosity in the Lower Oligocene primary reservoir. 


Geological highlights include:

- Approximately 53 feet (16 meters) more net pay than encountered in the
original well, which was measured at 82 feet of net pay with 19% porosity by
Huddleston & Co, Inc. 


- The top of the main Oligocene pay zone seen in the original Songkhla #1 well
("the original well") came in as prognosed at 7,252 feet (2,210 meters) true
vertical depth, which is approximately 86 feet (26 meters) structurally higher
than the original well. 


- Another Lower Oligocene pay zone, not seen in the original well, was
encountered above the two previous known pay zones. This interval added an
approximate additional 15 feet (4.5 meters) of pay that is 160 feet (49 meters)
structurally higher than the previously known pay zone in the original well.


Following the initial flow test, an extended production test began on 3
November, 2008 and is expected to last through December. The well is currently
producing in excess of 4,500 barrels of oil per day with no water production
using an Electric Submersible Pump ("ESP"). The oil is a medium sweet grade with
API gravity of 29 degrees and 0.24% sulfur content and will initially be
marketed to a local Thai refinery.


Randy Bartley, Chief Executive Officer of Coastal Energy commented: "We are very
pleased with the results of the Songkhla A-01 well. We logged 65% greater net
pay than the original Songkhla well. The current flow rate is significantly
higher than the rate we were using in our financial presentation. The extended
production test will continue while we drill additional wells on the Songkhla
main structure."


The Company also announced that it spudded the Songkhla A-03 well on 1 November,
2008 and is currently drilling at 2,500 feet (762 meters) true vertical depth.
Songkhla A-03 is the second in the development of the Songkhla field. The well
is expected to be drilled to a total depth of approximately 7,900 feet (2,408
meters) true vertical depth. 




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" 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 equivalent(i)

- The Company's current assets include:

  - Offshore Thailand

    - 100% of block G5/43 - two oil fields currently under development with 
      several other similar 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 second 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.


This statement contains 'forward-looking statements' as defined by the
applicable securities legislation. Statements relating to current and future
drilling results, existence and recoverability of potential hydrocarbon
reserves, production amounts or revenues, forward capital expenditures,
operation costs, oil and gas price forecasts and similar matters are based on
current data and information and should be viewed as forward-looking statements.
Such statements are not guarantees of future results and are subject to risks
and uncertainties beyond Coastal Energy's control. Actual results may differ
substantially from the forward-looking statements. 


(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 to 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.


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.
Claren Energy (TSXV:CEN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Claren Energy Charts.
Claren Energy (TSXV:CEN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Claren Energy Charts.