Coastal Eng Regulatory News (CEO)

AIM: CEO                                                                                                                                            January 11, 2012

TSX: CEN

Coastal Energy Company Grants Stock Options

Coastal Energy Company (the "Company") (TSX: CEN, AIM: CEO) announces that it granted a total of 1,538,773 incentive stock options to directors, officers, employees and contractors of the Company, pursuant to the Company's Stock Option Plan on 14 December 2011.  These options are exercisable at a price of Cdn $14.04 per share, vest equally over a period of three (3) years and expire five (5) years from the date of award.  The following director and officers were granted the following options.

As at December 31, 2011 the Company had 113,605,881 shares of common stock issued and outstanding.

In addition, the Company granted a total of 205,628 restricted stock units ("RSUs") to directors, officers, employees and contractors of the Company, pursuant to the Company's Restricted Stock Unit Plan on 14 December, 2011.  These RSUs vest equally over a period of three (3) years.  The following directors and officers were granted the following RSUs:

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                                                                                                                                                                                   +44 (0) 20 7448 0200

Travis Inlow

Buchanan

Tim Thompson                                                                                                                                                                                       +44 (0) 20 7466 5000

Ben Romney

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