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.