OR THROUGH UNITED STATES NEWSWIRE SERVICES/

AIM: CEO

TSX-V: CEN

HOUSTON, April 27 /CNW/ - Coastal Energy Company ("the Company" or "Coastal Energy") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in Southeast Asia, announces the audited financial results for the year ended December 31, 2008. The functional and reporting currency of the Company is the United States dollar.

Financial Highlights

- Revenue of $4,098,000. Offshore production commenced in Q4 2008.

- $12,904,000 of earnings from Coastal's 36.1% investment in APICO LLC,

whose primary asset is the Phu Horm gas field (FY 2007: $7,679,000).

Coastal received cash distributions totaling $16,619,000 from APICO

in 2008.

- Net loss from continuing operations of $2,561,000 or $0.03 per share

(FY 2007 loss from continuing operations: $7,083,000 or $0.10 per

share)

- Total assets increased to $258.4 million at December 31, 2008 from

$157.7 million at December 31, 2007

Operational Highlights

- Offshore production from the Company's Songkhla field commenced in

November 2008. Production averaged approximately 3,000 bopd in

Q4 2008. Current offshore production from Songkhla is approximately

10,000 bopd.

- The Phu Horm gas field, in which the Company has a net 12.6% indirect

interest, was producing approximately 83 mmcf/d of gas for the year

ended December 31, 2008. Phu Horm is currently producing in excess of

100 mmcf/d.

- 118% increase in Offshore 1P (proven) Reserves to 18.1 mmbbl from

8.3 mmbbl

- 55% increase in Offshore 2P (proven + probable) Reserves to

41.5 mmbbl from 26.7 mmbbl

- 39% increase in Total 1P (proven) Reserves to 26.6 mmboe from

19.1 mmboe

- 37% increase in Total 2P (proven + probable) Reserves to 62.2 mmboe

from 45.5 mmboe

Randy Bartley, Chief Executive Officer of Coastal Energy commented:

"The Company made substantial progress in its development in 2008. We achieved our stated goal of first production from the Songkhla field. Coastal is now producing approximately 10,000 bopd from Songkhla, bringing combined onshore and offshore production to 12,000 boepd. The commencement of offshore production has allowed the Company to begin generating positive free cash flow. This has helped strengthen our working capital position. We also saw a significant increase in our proven and probable reserves as a result of our Q4 2008 drilling program.

"As we move further into 2009 we remain focused on our stated goal of continuing to develop our Gulf of Thailand concessions. In spite of an increasingly difficult macroeconomic environment, the Company has been able to make remarkable progress in 2008 and in the start of 2009. Its goals have been met despite the challenges with which it has been presented. The Board has been strongly supportive of the way the management and the operations team have been able to reach targets, while keeping the needed flexibility to face a changing environment. With our continued focus and drive, we are confident 2009 will bring more successes and pave the way for further growth.

"I would also like to thank Mr. John J. Murphy for his service to the Company over the past two and one-half years. His advice and experience have been valuable to the Company as it has progressed in its development."

Directorate Change

The Company announces that Mr. John J. Murphy has decided to retire from the Board of Directors. Mr. Murphy has been a Director since 2006. Mr. Murphy has decided to reduce his business obligations to spend more time with his family and to travel.

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.

Notes to Editors

- Coastal Energy is an oil and gas exploration and production company

with core assets onshore and offshore Thailand

- The Company specialises in identifying and developing under- exploited

or "orphaned" assets. Management has proven experience at identifying

and unlocking value from overlooked, abandoned, low risk assets with

proven hydrocarbon potential

- The Company has current production of approximately 10,000 barrels of

oil per day and 12.6 mmcf/d of gas.

- Production growth over the next 12 - 18 months is expected to be

substantial. Proven and probable reserves are 62.2 million barrels

oil equivalent in the Company's reserve report prepared by Huddleston

& Co. dated 14 April, 2009 (effective date of 31 December, 2008)(x)

- The Company's current assets include:

- Offshore Thailand

- 100% of block G5/43 - two oil fields currently under

development with several other similar appraisal and

exploration opportunities. Current production from the Songkhla

field is approximately 10,000 bbl/d.

- 100% of block G5/50 - within the boundaries of block G5/43 in

the Ko Kra basin

- Onshore Thailand

- 12.6% net interest in the Phu Horm gas field, which has average

daily production of 100 mmcf/d as of March 31, 2009.

Additional information may be found on the Company's website, www.CoastalEnergy.com or may be found in documents filed on SEDAR, 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.

(x) Per barrel of oil equivalent ("boe") amounts have been calculated

using a conversion rate of six thousand cubic feet of natural gas to

one barrel of oil equivalent (6:1). The term boe may be misleading,

particularly if used in isolation. A boe conversion ratio of 6mcf to

1bbl of oil is based upon an energy equivalency conversion method

primarily applicable at the burner tip and does not represent a value

equivalency at the wellhead.

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"

ANNUAL REPORT

COASTAL ENERGY

December 31, 2008

President's Report to the Shareholders

Coastal Energy made great progress as a company during the fourth quarter of 2008 and early months of 2009. First oil production from the Songkhla field was a defining moment for the Company. We are now producing approximately 10,000 barrels of oil per day in the Gulf of Thailand, which is above the level we expected following early production testing. This brings Coastal's total daily production, including its share of onshore gas from Phu Horm, to approximately 12,000 barrels of oil equivalent per day.

As we move further into 2009, we remain focused on our stated goal of continuing to develop our concessions in the Gulf of Thailand. Our technical team is highly encouraged by the results of the Q4 '08 Songkhla drilling program and believes that numerous exploration and development opportunities exist beyond Songkhla and Bua Ban. Given the uncertainty in the capital markets and volatility in commodity prices, we plan to approach any further development in a disciplined manner. As of today, Coastal has no commitments for further development capital expenditures. However, we do expect to begin committing capital to further Songkhla and Bua Ban development later this year.

The Phu Horm gas field onshore Thailand is currently producing approximately 83 mmcf/d (10.4 mmcf/d net to Coastal). Two wells are planned this year on the exploration blocks which are adjacent to Phu Horm. Both wells offer the potential to add resources with minimal geological risk.

In the first quarter of 2009, we raised a total of $18 million to bolster our working capital. In challenging capital markets, this has been achieved with minimal dilution to our current shareholder base.

In spite of an increasingly difficult macroeconomic environment, the Company has been able to make remarkable progress in 2008 and in the start of 2009. Its goals have been met despite the challenges with which it has been presented. The Board has been strongly supportive of the way the management and the operations team have been able to reach targets, while keeping the needed flexibility to face a changing environment. With our continued focus and drive, we are confident 2009 will bring more successes and pave the way for further growth.

On behalf of the Board of Directors

Randy L. Bartley

President and Chief Executive Officer

April 23, 2009

COASTAL ENERGY COMPANY

Years ended December 31, 2008 and 2007

(All tabular amounts are expressed in US$000's unless otherwise stated

except share and per share amounts)

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The following is Management's Discussion and Analysis ("MD&A") of the results and financial condition of Coastal Energy Company ("Coastal" or the "Company"). This MD&A, dated April 23, 2009, should be read in conjunction with the accompanying audited consolidated financial statements for the years ended December 31, 2008 and 2007 and related notes thereto. Additional information related to the Company is available on SEDAR at www.sedar.com.

Overview

The Company was incorporated in the Cayman Islands under the Companies Law of the Cayman Islands on May 26, 2004. The Company is engaged in the acquisition and exploration of petroleum and natural gas properties. The functional and reporting currency of the Company and its subsidiaries is the US dollar. The Company's trading symbols are "CEN" on the TSX-V and "CEO" on the AIM exchange.

The Company's oil and gas properties and assets consists of the following ownerships interests in petroleum concessions awarded by the Kingdom of Thailand:

Petroleum Concession Coastal

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Gulf of Thailand

Block G5/43 100.0%

Block G5/50 (within the boundaries of Block G5/43) 100.0%

Onshore Thailand (via the Company's 36.1% ownership of Apico LLC

("Apico"))

Blocks EU-1 and E-5N containing the Phu Horm gas field 12.6%

Block L15/43 (surrounding the Phu Horm gas field) 36.1%

Block L27/43 (southeast of the Phu Horm gas field) 36.1%

Block L13/48 (immediately east of the Phu Horm gas field) 21.7%

Fourth Quarter 2008 Highlights

- On November 3, 2008, the Company announced the successful flow test

results of the Songkhla A-01 well. The Songkhla A-01 well was drilled

to a total measured depth of 9,025 feet (2,750 meters) and logged

approximately 125 feet (41 meters) of net pay with 20% porosity in

the Lower Oligocene primary reservoir. The well produced in excess of

4,500 barrels of oil per day with no water production using an

Electric Submersible Pump ("ESP").

- On November 12, 2008, the Company announced that it had successfully

completed drilling the Songkhla A-03 well. The Songkhla A-03 well was

drilled to a total measured depth of 9,500 feet (2,895 meters) and

logged approximately 110 feet (34 meters) of net pay with 18%

porosity in the Lower Oligocene primary reservoir. The well came in

approximately 47 feet high compared to the A-01 well. After further

evaluation, the Company announced on December 15, 2008 that the A- 03

interval contains 152 feet (46 meters) of net pay with 20% porosity.

- On November 13, 2008, the Company announced that it received

government approval of its Environmental Impact Assessment ("EIA")

for the 75 square kilometre Songkhla production area in the Gulf of

Thailand.

- On December 15, 2008, the Company announced that it completed the

Songkhla A-03 well and it was producing 5,000 barrels of oil per day

with no water using an Electric Submersible Pump ("ESP").

- On December 15, 2008, the Company also announced that it completed

the Songkhla A-07 well. The A-07 well was drilled to a total measured

depth of approximately 11,385 feet (3,470 meters) and logged

approximately 136 feet (41 meters) of net pay with 16.5% porosity in

the deeper Eocene reservoir. The entire interval has been tested and

produced approximately 1,100 barrels of oil per day with

approximately 1,100 barrels of water per day. Prior to the rig

demobilization, remedial completion work was performed on the A- 07

well to isolate the water production and to fully evaluate the well.

Other 2008 Highlights

- On January 8, 2008, the Company completed a public offering of

16,445,000 common shares (including the over-allotment of 2,145,000

common shares) of the Company, at a price of $3.50 (Cdn $3.50) per

common share, raising gross proceeds of $57.6 million

(Cdn $57.6 million). Proceeds of this offering, net of issuance costs

of $3.1 million were $54.5 million.

- On February 26, 2008, the Company acquired a 24,000 ton vessel for

$8 million to be refurbished and put into service as a floating

storage and off-loading unit in connection with the development of

the Company's Gulf of Thailand properties.

- On June 6, 2008, the Company announced it had received Thai

Government approval on the Production Area Application for the

development of its Songkhla field in the Gulf of Thailand. The

Approval covers an extended area of 75 square km which includes not

only the Songkhla field, but numerous surrounding satellite

structures. The extended production area is significant because it

enables the Company to fully exploit the prospects without the need

to apply for additional Government approvals.

- The Company has reported $12.9 million as its share of earnings of

significantly influenced investee, net of taxes. This represents

$13.96 million (its 36.1% of Apico's audited net income of

$38.65 million) less $1.06 million for amortization of the Company's

excess basis in Apico (see Note 7 to the Consolidated Financial

Statements.)

- The Phu Horm gas field, in which the Company has a net 12.6% indirect

interest, had an average daily production of 83 mmcf/d for the year

ended December 31, 2008.

Forward Looking Statements

Certain information included in this discussion may constitute forward-looking statements. Forward looking statements are based on current expectations, estimates, and projections that involve various risks and uncertainties. These risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied.

Non-GAAP Measures

This report contains financial terms that are not considered measures under Canadian generally accepted accounting principles ("GAAP"), such as funds flow from operations, funds flow per share, EBITDA, net debt and operating netback. These measures are commonly utilized in the oil and gas industry and are considered informative for management and shareholders. Specifically, funds flow from operations and funds flow per share reflect cash generated from operating activities before changes in non-cash working capital. Management considers funds flow from operations and funds flow per share important as they help evaluate performance and demonstrate the Company's ability to generate sufficient cash to fund future growth opportunities and repay debt. EBITDA is defined as earnings before interest, taxes, depreciation, amortization and earnings from significantly influenced investee adjusted for non-cash items such as unrealized gains and losses on risk management contracts, unrealized foreign exchange gains or losses and stock-based compensation. Net debt includes short term and revolving credit facilities less cash and cash equivalents and restricted cash, and is used to evaluate the Company's financial leverage. Profitability relative to commodity prices per unit of production is demonstrated by an operating netback.

Funds flow from operations, funds flow per share, EBITDA, net debt and operating netbacks are not defined by GAAP, and consequently are referred to as non-GAAP measures. Accordingly, these amounts may not be compatible to those reported by other companies where similar terminology is used, nor should they be viewed as an alternative to cash flow from operations, net income or other measures of financial performance calculated in accordance with GAAP.

Oil & Gas Reserves

The Company's reserves were evaluated by Huddleston & Co., Inc. effective December 31, 2008 and are all in Thailand. Selected data from their report follows. Their report, dated April 14, 2009, is incorporated in our 2008 Annual Information Form ("AIF") which is available on SEDAR at www.sedar.com. Natural gas is converted to equivalent barrels ("BOE") at the energy equivalent conversion rate of six thousand cubic feet (6mcf) to one barrel ("1bbl") of crude oil, reflecting the approximate relative energy content.

The following consolidated reserve figures, before royalties for 2008 and 2007 reflect Coastal Energy's 100% interest in its Gulf of Thailand concessions (Block G5/43 and G5/50) and 36.1% interest in APICO as if the Company directly owned the onshore properties.