CEN Claren Energy Corp

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 the Kingdom of Thailand has approved a
282 square kilometer production licence surrounding its Bua Ban field in the
shallow waters of the Gulf of Thailand. The effective date for the production
licence is January 12, 2009. The licence is in effect for 20 years, or until
production ceases. The Bua Ban field contains an estimated 21.8MM barrels of
proven plus probable reserves based on the Company's 2007 year-end reserves
report compiled by Huddleston & Co. Coastal Energy is the operator and owns 100%
of the field, contained within its 2.2 million acre G5/43 block.


The Company plans to develop Bua Ban field beginning in the second quarter of
2009. Production is projected to commence in the third quarter through temporary
storage and offloading facilities and is expected to average 9,500 barrels of
oil per day by the end of the fourth quarter. This is in addition to the 10,000
barrels of oil per day planned for the Songkhla field, also located in Block
G5/43, which was developed in late 2008. The Company is currently installing a
MOPU and storage tanker at Songkhla and plans to restart production at Songkhla
by the end of February 2009. Installation of permanent production facilities at
Songkhla is planned for the second quarter of 2009.


The Bua Ban field is located along a major north-south structural trend which
extends through much of the southern half of the G5/43 block. Coastal Energy
owns a 3D seismic survey covering this trend and has thus far identified nine
additional prospects which look similar to the Bua Ban field. All of these
prospects are located within the Bua Ban production licence. One of these
structures, Benjarong Main, was penetrated by the Benjarong-1 well, which
encountered 105 feet of net pay between 9,954 feet and 10,379 feet.


Five of the nine prospects are located near the Bua Ban field and the other
three prospects are located nearer to the Benjarong Main structure. The high
resource case for the Bua Ban area prospects is approximately 312 million
barrels based on the Company's 2007 year-end reserves report. The prospects in
the Benjarong area, including Benjarong Main, are estimated by the Company to
contain potential high case resources of 39 mmbbls.


Randy Bartley, Chief Executive Officer of Coastal Energy commented:

"The Bua Ban production licence is a continuing major step forward for Coastal
in the development of our offshore Thailand properties. Not only does it allow
us to move forward with the early development and production of Bua Ban, it also
secures the upside potential of the area for the long term."


Randy Bartley, President and Chief Executive Officer of the Company and a member
of the Society of Petroleum Engineering and Jerry Moon, Vice President,
Technical & Business Development, a member of the American Association of
Petroleum Geologists, a Licensed Professional Geoscientist and a Certified
Petroleum Geologist in the state of Texas, have reviewed the contents of this
announcement.


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(1)


- The Company's current assets include:



- Offshore Thailand

  - 100% of block G5/43 - two oil fields currently under development with
    Company expects to exit Q1 2009 with average production of 9,000 bopd
    from Songkhla.

  - 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 had average daily production of 94 mmcf/d for the
    quarter ended September 30, 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.


(1)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.


To view Exhibit 1: Bua Ban Production Area, please visit the following link:
http://media3.marketwire.com/docs/CEN0122A.pdf.


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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