CEO Coastal Eng

Coastal Energy Company (the "Company") (TSX:CEN) (AIM:CEO) wishes to comment on media reports regarding a potential transaction between Coastal and Indonesia's state-owned oil company Pertamina. The Company advises that it continuously evaluates strategic alternatives, including but not limited to the potential sale of the Company, to maximize shareholder value. However, there can be no assurance that any transaction will occur.

The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062

CONTACT: Enquiries:
         
         Coastal Energy Company
         Email: investor@CoastalEnergy.com
         +1 (713) 877-6793
         
         Strand Hanson Limited (Nominated Adviser)
         +44 (0) 20 7409 3494
         Rory Murphy / Paul Cocker
         
         Macquarie Capital (Europe) Limited (Broker)
         +44 (0) 20 3037 2000
         Steve Baldwin / Jeffrey Auld
         
         FirstEnergy Capital LLP (Broker)
         Hugh Sanderson / Travis Inlow
         +44 (0) 20 7448 0200
         
         Buchanan Communications
         Tim Thompson / Ben Romney
         +44 (0) 20 7466 5000