Coastal Energy Announces First Quarter 2011 Financial Results

Coastal Energy Company, the independent exploration and production company with assets in Thailand, announces the financial results for the three months ended March 31, 2011. The functional and reporting currency of the Company is the United States Dollar.

First Quarter 2011 Highlights

-- Total Company production averaged 10,125 boepd in the first quarter, up from 7,578 boepd in the fourth quarter of 2010, a 34% increase. Offshore production was impacted by downtime for workover operations on several wells.

-- EBITDAX for Q111 was $40.1 million, 13% above the same period in 2010.

-- The Company began its exploration program with a discovery at Bua Ban North A. The Bua Ban North A-01 well encountered pay zones in the Miocene and Upper Oligocene intervals.

-- Subsequent to quarter-end, two further successful exploration wells were drilled at Bua Ban North A and six successful exploration wells were drilled at Bua Ban North B. The Company plans to begin testing these discoveries in July.

Randy Bartley, President and CEO of Coastal Energy, commented:

"I'm pleased to report that the first quarter of 2011 brought further success for the Company. Production and cash flow both increased from the previous quarter. We expect to see material production gains offshore as Bua Ban North B & A are tied in beginning in July.

"Exploration results for the year to date have been outstanding. Ten exploration wells have been drilled to date and nine of them have been successful. The Miocene trend, which was first discovered at Bua Ban, has proved to be a successful play at Bua Ban North A & B. We are excited about the continued success with the Miocene given the large number of Miocene prospects on our concessions and the fact that the Miocene interval has the best reservoir characteristics that have been seen in the basin.

"We look forward to the remainder of 2011. We expect to begin testing Bua Ban North B in July following the completion of the appraisal drilling. We will then move the rig to the Songkhla H prospect, which is a potential high impact Miocene target. Songkhla H is located outside of the Company's current production areas and is a commitment well. Later in the year, we will return to Songkhla A to further develop that field and restore production rates."