OilVoice - Coastal Energy Announces Financing Transaction

Coastal Energy Announces Financing Transaction

07 January 2009

Coastal Energy Company, an AIM listed independent exploration and production company with assets in Southeast Asia, announces that it has entered into a short-term unsecured loan agreement in the amount of $3MM ("the Debt"). The Debt matures on June 30, 2009 and will bear interest at 15% per annum.

A company wholly owned by Oscar S. Wyatt, Jr., the Company's principal shareholder, funded $2MM of the loan, while an associate of Mr. Wyatt funded the remaining $1MM. The Debt was issued separately from the Company's $10MM Senior Unsecured Note offering which was announced 22 December, 2008. The Debt was issued in a separate transaction due to securities exchange regulations which prohibit insiders from participating in debt offerings which include a warrant issue as consideration. The proceeds will be used to further fund development of the Company's assets offshore Thailand and for general corporate purposes.