Coastal Eng Regulatory News (CEO)

For immediate release                                                                                                                                    14 March 2012

TSX: CEN                                                                                                                                       

AIM: CEO

Coastal Energy Announces Successful Results of Bua Ban South A-01 Well

Coastal Energy Company (the "Company" or "Coastal Energy") (TSX: CEN, AIM: CEO), an independent exploration and production company with assets in Thailand, announces the successful results of the Bua Ban South A-01 well.

The Bua Ban South A-01 well was drilled to a total depth of 8,500 feet TVD.  The well encountered 88 feet of net pay in the Lower Oligocene section.  The new discovery demonstrated good reservoir characteristics with 12 percent porosity and recorded pressure data indicate that this is a new and separate accumulation from the Bua Ban Main field.   

The successful results of Bua Ban South A-01 are being incorporated into the ongoing technical review, operational planning and guidance on the potential size of the discovery will be forthcoming once complete.

The Lower Miocene sands which were present in the Bua Ban Main A-11 well were not present in this particular fault block. 

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

"The Bua Ban South A-01 well has discovered a new oil accumulation.  This successful well has re-enthused us for the Lower Oligocene at the Bua Ban South area.  We will also be testing two adjacent upthrown Miocene fault blocks with the next two wells."

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 Certified Petroleum Geologist and a Licensed Professional Geoscientist 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

Email: investor@CoastalEnergy.com                                                                                                                                                       +1 (713) 877-6793

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

Rory Murphy / Paul Cocker                                    

Macquarie Capital (Europe) Limited (Broker)                                                                                                                                +44 (0) 20 3037 2000

Paul Connolly / Jeffrey Auld

FirstEnergy Capital LLP(Broker)

Hugh Sanderson / Travis Inlow                                                                                                                                                            +44 (0) 20 7448 0200

Buchanan             

Tim Thompson / Ben Romney                                                                                                                                                                +44 (0) 20 7466 5000

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.