Coastal Energy Company (the "Company" or "Coastal") (TSX-V: CEN) (AIM: CEO), an independent exploration and production company with assets in Thailand, announces an update of its operations in Thailand.

Offshore Production (Songkhla A)

Coastal's offshore production from Songkhla A averaged approximately 7,100 bbl/d for the first quarter of 2010. Q110 offshore production was impacted by downtime on the Songkhla A-04 well while the submersible pump was being replaced as well as downtime on the A-01 and A-03 wells while larger submersible pumps were installed. Currently, Coastal's offshore production is averaging approximately 9,500 bbl/d. Combined with its onshore production from the Sinphuhorm gas field, total production is approximately 11,500 boe/d.

Bua Ban EIA

The Company also announces that it has received government approval of its Environmental Impact Assessment for the Bua Ban field development, allowing it to proceed with development of the field later in 2010.

Phu Kheng-1 (L27/43, Coastal 36.1% working interest)

The operator of onshore block L27/43 in northeastern Thailand completed a hydraulic fracturing test targeting a shallower interval in the Phu Kradung sandstone than was previously tested. Despite the presence of gas saturation and porosity determined from wireline logs, the targeted interval did not flow after the frac operation. The partners in the block have agreed to plug and abandon the well.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented:

"I am delighted to announce that Coastal Energy has received government approval of its EIA for Bua Ban. This will allow us to proceed with the development of this field in 2010 in line with expectations and unlock its 21.8 mmbbl of proved plus probable reserves.

"Despite delays caused by issues with some of the submersible pumps at Songkhla A, I am also pleased to report that production levels for the quarter were strong and Coastal is on track for a robust 2010."

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

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.

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

This news release is not for dissemination in the United States or through United States newswire services

Enquiries: Coastal Energy Company Randy L. Bartley, Chief Executive Officer +1 713 877 6705 William C. Phelps, Chief Financial Officer +1 713 877 6727 Email: Email Contact Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494 Rory Murphy Paul Cocker Thomas Weisel Partners (Broker) +44 (0) 20 7877 4300 Paul Colucci Macquarie Capital (Europe) Limited (Broker) +44 (0) 20 3037 2000 Ben Colegrave Paul Connolly Buchanan Communications Tim Thompson +44 (0) 20 7466 5000 Catherine Breen Katharine Sutton

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