CEN Claren Energy Corp

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 the Gulf of Thailand.

The Bua Ban A-06 well was drilled to a total depth of 7,584 feet TVD and encountered approximately 40 feet of net pay with 17.5% porosity in the Lower Oligocene reservoir. The well was completed using an electric submersible pump and is currently producing approximately 800 bopd. The Miocene section of the Bua Ban A-03 well has been completed and is currently producing approximately 80 bopd. The performance of the A-03 is currently being evaluated. Two further wells, the Bua Ban A-04 and A-07, are currently being drilled and completed, and then production testing can begin.

The four wells at Songkhla A continue to perform in line with modeled rates and the Company's total offshore production is now approximately 11,800 bopd. The Company's total combined production, including 2,000 boepd from the Sinphuhorm gas field, is approximately 13,800 boepd.

The Company has extended its rig contract on the Atwood Vicksburg through June 30, 2011 on terms similar to the current contract.

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

"We are continuing to add production offshore as we develop the Bua Ban field. We are excited about the rig contract extension as it will allow us to expedite development work at Bua Ban as well as undertake some exploration drilling on the surrounding satellite structures." 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.

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 Stifel Nicolaus Weisel (Broker) +44 (0) 20 3205 3615 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 Katharine Sutton Ben Romney