For immediate release                                                                                                         9 February 2010

AIM: CEO                                                                                                                   

TSX-V: CEN

Coastal Energy Announces Operational Update

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.

Songkhla B-02

The Songkhla B-02 well reached a total measured depth of 9,606 feet (2,928 meters) and encountered 7 feet of net pay in the Lower Oligocene reservoir.  A sidetrack well is being drilled targeting an area down structure into a seismically identified thicker section of the reservoir.  The sidetrack well will help to define the size and potential of the reservoir.  The B-02 sidetrack well has been temporarily delayed due to a mechanical issue with the drilling rig top drive.  The top drive is being transported to Singapore for repair and the rig is expected to be operational again in approximately 10 days. 

In addition to the discovery in the Lower Oligocene formation, the B-02 well also encountered several hundred feet of oil shows in a fractured Lower Oligocene Lacustrine shale interval.  Further evaluation of this fractured shale interval is required to determine its viability as a prospective reservoir. 

Songkhla A

Workover operations have commenced on the Songkhla A-04 well and are expected to be completed early next week.  Following the workover of Songkhla A-04, the A-01 and A-03 electric submersible pumps will be replaced with higher volume ESPs.

Bua Ban Facilities

The Bua Ban platform installation was completed ahead of schedule.  Hookup and commissioning operations have begun and the platform is expected to be ready for operations in April.  The refurbishment of the Coastal Energy Resolution FSO is also on schedule and the vessel is expected to be ready for installation at Bua Ban in mid-April. 

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

"The initial results of the Songkhla B-02 well confirm the existence of a seal and trap on the western side of the Songkhla B structure.  Further evaluation is required to determine the size and potential of the reservoir.  We look forward to continuing the sidetrack well once the rig is repaired.  Meanwhile, workover operations at Songkhla A continue to progress and we expect to have production restored from the A-04 well shortly.  The Bua Ban facilities installation is ahead of schedule and the field will be ready for development drilling in the second quarter."

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.comor 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.

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: investor@CoastalEnergy.com

Strand Hanson Limited (Nominated Adviser)                                                                                           +44 (0) 20 7409 3494

Rory Murphy                                          

Paul Cocker                                            

Thomas Weisel Partners (Broker)                                                                                                           +44 (0) 20 7877 4300

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

Catherine Breen

Katharine Sutton

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