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1Copyright Coastal Energy Company 2009 | All Rights ReservedCorporate Presentation September 2009

Corporate Presentation

September 2009


Forward Looking Statements

This presentation contains ‘forward-looking statements’ as defined by the applicable securities legislation.Statements relating to current and future drilling results, existence and recoverability of potentialhydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oiland gas price forecasts and similar matters are based on current data and information and should beviewed as forward-looking statements. Such statements are NOT guarantees of future results and aresubject to risks and uncertainties beyond Coastal Energy’s control. Actual results may differ substantiallyfrom the forward-looking statements. This presentation does not contain all of the information contained inthe preliminary prospectus of Coastal Energy Company, which should reviewed for complete information.


The Company OverviewNet Asset ValueInvestment Highlights

Asset OverviewOffshore Gulf of ThailandOnshore Thailand

Investor InformationReserve BaseCorporate InformationStrategy and Objectives

Appendix

Presentation Outline


Company Overview

International Oil and Gas Company with assets in Thailand

Established Reserve and Production Base Total production (Q209 avg.) 8,780 boepdOil production from Songkhla field in the Gulf of Thailand 6,700 bopdNet production from Phu Horm gas field onshore Thailand 2,080 boepdProven (1P) Reserves 26.6 mmboeProven plus Probable (2P) Reserves 62.1 mmboeProven plus Probable plus Possible (3P) Reserves 75.7 mmboeContingent and Prospective Resources 773.0 mmboe

Balanced portfolio of production, development and exploration assets:Offshore Thailand – Oil production with appraisal and exploration upsideOnshore Thailand – Gas production with appraisal and exploration upside

Note: Q209 average production rates; Reserve numbers from Competent Person’s Report dated 12/31/2008 prepared by Huddleston & Co.


Investment Highlights

Established production offshore and onshore Thailand: 8,780 boepd

Active drilling program commencing early September

2 development wells, 2 exploration wells and 2 water injection wells

High-impact offshore development assets

2P Reserves at the Songkhla field in the Gulf of Thailand increased 300% from

4.9 mmbbl to 19.7 mmbbl as a result of Q408 drilling campaign

2P Reserves at the Bua Ban field in the Gulf of Thailand of 21.8 mmbbl

Significant offshore exploration potential

346 mmbbl of Prospective Resources

Shallow water development is cost effective

Maximum water depth of 100 ft (Songkhla & Bua Ban water depths are between 50 and 80 ft)

Low F&D costs and lease operating expenses

Ability to leverage existing offshore infrastructure in future development

Use of FSO and processing platforms to produce from multiple fields will help minimize lease operating expenses and development costs


Offshore Development Plan


Offshore Thailand - 100% of blocks G5/43 & G5/50:Songkhla Field: Average production of 6,700 bbl/d in Q209

2 Lower Oligocene development wells and 2 water injection wells are planned for Q309; rig arrived on location early September 2009

Songkhla B – Potentially high-impact exploration well planned to spud in October

Bua Ban Field: Drilling expected to commence early 2010

Untested exploration potential in Songkhla Basin as well as three other under-explored Tertiary Basins within the block

Onshore Thailand – Balanced Risk Portfolio:12.6% net working interest in the Phu Horm gas field currently producing 12.6 mmcfd on average; 2,080 boepd net to Coastal

36% interest in block L27/43 – contains the undeveloped Dong Mun gas field; Phu Kheng-1 well reached TD in August and is currently being evaluated

22% interest in block L13/48 located adjacent to blocks L15/43 and L27/43 –contains Si That discovery; Si That B well scheduled to spud Q3 2009

36% interest in block L15/43 – surrounds the Phu Horm field

Total Q209 average production of approximately 8,780 boepd

Asset Overview


G5/43 Fields and ProspectsConfirmed prospect inventory includes a variety of structural and stratigraphic targets:

Songkhla

Songkhla B – low-risk exploration prospect similar in size and structure to Songkhla Main; good Lower Oligocene, Miocene and Eocene targets

Bua Ban

5 prospects surrounding Bua Ban (including Benjarong Lower Oligocene) evaluated by Huddleston & Co.

Benjarong

Benjarong Eocene prospect evaluated by Huddleston & Co. And assigned contingent resources of 17.5 mmbbl; requires further drilling to confirm reserve base

Existing 3D coverage over discovered fields and several undrilled mapped prospects

Ko Khra Basin and Nakhon Basin remain unexplored and require seismic surveys; a 2-D seismic survey is scheduled for late September 2009

Songkhla South

Bua Ban Field

Benjarong East 1

Benjarong East 2

Songkhla Main

Eocene

Songkhla B Miocene

Bua Ban North A

Songkhla North

Benjarong-1

Songkhla S-1

Songkhla Southwest

Benjarong Eocene

Benjarong Lower

Oligocene

Bua Ban North D

Bua Ban North C

Bua Ban Northwest A

Bua Ban Northwest

B

Bua Ban North B

Songkhla West

OligoceneUnit 4

Songkhla West Oligocene Unit 2

Songkhla A Miocene

Songkhla BEocene

Songkhla BOligocene

Legend

Reserves

Prospective Resources

Contingent Resources

Additional Coastal Prospects

Production

Songkhla Main

Oligocene


Block G5/43 – Songkhla A Lower Oligocene

Drilling rig arrived on location early September

Plan to drill four wells – two development and two injection

Plan to install larger pumps and check liner tops on A-01 and

A-03 wells with a workover rig in November

Initial production rates from Songkhla A-01 and A-03 wells

were 3x that of the original Songkhla #1 well

Strong water drive should increase ultimate recovery factors

Well Name Net Pay (ft) PorosityFeet structurally higher than

Songkhla #1 WellSongkhla A‐01

(Lower Oligocene) 126 20% 86Songkhla A‐03

(Lower Oligocene) 152 20% 47

-8300

-850

-840

0

-8300

-83

-8000

-800

0

-8000

-800

0

-8200

-8200

-820

0

-820

-7700

-7700

-7700

-770

-8100

-810

0

-8100

-8100

-7600

-760

0

-760

0

-76

-7900

-790

0

-7

-7800

-780

0

-7500

-7500

-750

0

-7400

-7400

-7400

-7300

-720

0

00 688400 688800 689200 689600 690000 690400

00 688400 688800 689200 689600 690000 690400

SA-01

S-1 SA-03

----888888888800000000000000000000000000000

-7-7-7-7-7-7-7-7-7-7-7-7-77777777700000000000000

8888881010101010101010101000000

Structure Map Top Oligocene Reservoir


Block G5/43 - Songkhla A EoceneTop Eocene Structure Map

Production from A-07 Eocene exploration well was tied in mid-April 2009

A-07 well has been shut-in due to mechanical pump issues since early June 2009; a workover is planned in November

Plan to install larger pump, drill out bridge plug and add Lower Oligocene perforations

Additional Eastern Eocene Fault Block

Songkhla Eocene Fault Block B is included in 3P reserves of 7.6 mmbbl

SA-07

Songkhla Eocene Field

Additional Fault Block


Block G5/43 - Songkhla A Miocene Prospect

Miocene target west of Oligocene field

SA-05 water injector will be drilled with a secondary target of the Miocene West prospect

Main risks are migration and fault seal

Would establish a new play in the Songkhla sub-basin if successful

STOOIP (unrisked) of 47 mmbbl

Miocene prospect is not included in Huddleston’s Prospective Resource number


Block G5/43 – Songkhla B Prospect

An exploration well on the Songkhla B Prospect is planned following the development work at Songkhla Main

Water depth of 75 feet; drill depth of 8,500 feet

Multiple objectives in the Oligocene, Miocene and Eocene

Unrisked STOOIP of 106 mmbbl (73 mmbbl in the Eastern Area and 33 mmbbl in the Western Area)

Songkhla Field

Songkhla B Prospect

Eastern Area

WesternArea

Structure Map Top Oligocene Reservoir


Songkhla Field Songkhla B ProspectN

Lower Oligocene

EoceneSA 01 SA 03 SA 02 SA 04 SB 01 SB 04

Songkhla Basin Cross Section


Block G5/43 - Bua Ban Field

Bua Ban Field:

Development drilling to commence early 2010

Proved & Probable recoverable reserve estimate is 21.8 mmbbl

Original discovery well tested 768 bopd from Lower Oligocene sandstones

3 well appraisal programme completed in August 2005 encountered Lower Oligocene reservoir with estimated net pay ranging from 66 – 77 ft

Confirmed oil column of 577 ft – 724 ft

3-D Seismic acquired in Q4 2006

Top Lower Oligocene Depth Structure Map

Bua Ban-1

Bua Ban-2A

A’

ABua Ban

1

Bua Ban 3

Bua Ban 2

Bua Ban 2a


Offshore Reserves & ResourcesReserves (mmbbl) 1P 2P 3PSongkhla Lower Oligocene 9.8 15.7 19.7Songkhla Eocene 1.1 3.9 7.6Bua Ban Main 7.2 21.8 27.8

Total 18.1 41.4 55.1

Prospective Resources*Songkhla North 4.1Songkhla West Oligocene Unit 2 8.8Songkhla West Oligocene Unit 4 8.3Songkhla South-West 2.6Songkhla B Oligocene 5.6Songkhla B Eocene 2.5Songkhla South 2.7

Songkhla Total 34.6

Bua Ban North A 89.0Bua Ban North B 11.1Bua Ban North C 44.1Bua Ban North D 23.1Benjarong Lower Oligocene 144.4

Bua Ban Total 311.7G5/43 Total Prospective Resources 346.3

Contingent Resources*Benjarong 17.5Songkhla South-West 3.6

G5/43 Total Contingent Resources 21.1

Grand Total Offshore Prospective & Contingent Resources 367.4

Additional Coastal Prospects**Songkhla A Miocene 17.5Songkhla B Miocene 3.6

Songkhla Total 21.1

Bua Ban Northeast A 23.4Bua Ban Northeast B 10.2Benjarong East 1 & 2 21.9

Bua Ban Total 55.5

Total Coastal Additional Prospects 93.0

Gross Working Interest Reserves*Huddleston & Co. estimates as of 12/31/2008**Coastal Reserve Estimates Only

High Case (mmboe)

High Case (mmboe)

High Case (mmboe)


EU1/E5N – Contains the Phu Horm Gas Field (Coastal net

12.6% interest)

2,080 boepd net to Coastal

Gas is sold to the Nam Phong power plant under a 15-

year Gas Sales Agreement

L27/43 – Contains the Dong Mun undeveloped gas field and

several un-drilled prospects (Coastal net 36% interest); Phu

Kheng-1 well reached total depth in August 2009; currently

evaluating for further testing

L13/48 – Contains Si That discoveries (Coastal net 22%

interest); Si That B well scheduled to spud late Q3 2009

L15/43 – Surrounds Phu Horm and contains a potential

southern extension of the Phu Horm field (Coastal net 36%

interest)

Asset Overview – Onshore Thailand


Reserve Base

License Area Proved (1P) Proved +Probable (2P) Proved + Probable + Possible (3P)

Offshore – Oil (mmbbl)

Songkhla Lower Oligocene 9.8 15.7 19.7

Songkhla Eocene 1.1 3.9 7.6

Bua Ban 7.2 21.8 27.8

Total Offshore (mmbbl) 18.1 41.4 55.1

Onshore

Phu Horm - Gas (bcf) 49.3 120.2 120.2

Phu Horm – Condensate (mmbbl) 0.3 0.6 0.6

Total Onshore (mmboe) 8.5 20.8 20.8

Grand Total (mmboe) 26.6 62.2 75.9

Note: Reserves taken from the Competent Person’s Report prepared by Huddleston & Co., effective December 31, 2008


Significant Discount to 2P Net Asset Value

Case 10% Pre-tax (US$ MM)

10% Post-Tax (US$ MM)

NAV per Share (US$ Pre-tax)

NAV per Share (US$ Post-tax)

NAV per Share (C$ Post-tax)

Offshore

Proved $492.9 $284.1 $4.85 $2.80 C$3.06

Proved +Probable $1,173.6 $497.7 $11.56 $4.90 C$5.35

Proved + Probable + Possible $1,618.0 $634.3 $15.93 $6.25 C$6.82

Onshore

Proved $153.9 $69.5 $1.52 $0.68 C$0.74

Proved +Probable $264.9 $112.9 $2.61 $1.11 C$1.21

Proved + Probable + Possible $264.9 $112.9 $2.61 $1.11 C$1.21

Total

Proved $646.8 $353.6 $6.37 $3.48 C$3.90

Proved +Probable $1,438.5 $610.6 $14.17 $6.01 C$6.56

Proved + Probable + Possible $1,882.9 $747.2 $18.54 $7.36 C$8.03

Market Price as of September 22, 2009 (C$) Premium/(Discount) to 1P Value (Post-Tax)

Premium/(Discount) to 2P Value (Post-Tax)

C$4.40 13% (33)%

Notes: All amounts in US dollars except where notedAfter-tax NAVs include effect of Thai Petroleum Income Tax (PIT) and Special Remuneratory Benefit (SRB)NAVs determined using Forecast Pricing from Gilbert Lausten Jung (www.gljpc.com)Per share amounts calculated using fully diluted sharecount as at June 30, 20091 CAD = 0.916 USD as of August 31, 2009


Equity Research Analyst Estimates

Metric 2009E 2010E

Production (boe/d) 7,650 14,250

EPS – fully diluted C$0.34 C$1.03

OCFPS – fully diluted C$0.76 C$1.75

NAV (2P) C$5.575

Price Target C$5.425

CEN Stock Price (09/22/09) C$4.40*Average of most recent analyst estimates from Canaccord Capital, Paradigm Capital, Royal Bank of Canada Capital Markets and Thomas Weisel Partners


99,380,720

108,109,220

US$10.8 million

US$37.8 million

US$18.2 million

Total number of shares outstanding

Fully diluted share count

Cash

Reserve Based Credit Facility Outstanding

Other Short Term Debt

Trading Symbols: “CEO” on London AIM and “CEN” on TSX-V

Note: All figures as of June 30, 2009

Corporate Information


Continue to develop existing assets and build production

Prove up additional reserves within current portfolio

Continue to develop offshore holdings

Geographic focus and strategy Primary focus – Thailand and Southeast AsiaSecondary focus – Countries with developing economies and favourable operating regimes

Strategy and Objectives


Contact Details

Cayman Islands Houston Bangkok

Coastal Energy Company Coastal Energy Company NuCoastal (Thailand) Limited

Walker House 3355 West Alabama 24th Floor, Two Pacific Place

87 Mary Street Suite 500 142 Sukhumvit Road Klongtoey

George Town, KY1-9001 Houston, Texas 77098 Bangkok, Thailand 10010

Grand Cayman, BWI Telephone: +1 (713) 877-7125

Fax: +1 (713) 877-7192

[email protected]

www.coastalenergy.com


Appendix


Songkhla B – Miocene Prospect

Closure to -3915 ft = 243 Ac

Miocene Target on East Prospect Only

Fault Closure to -3915 feet = 243 Ac

STOOIP (unrisked) is 27 mmbbl


Songkhla B – Eocene Prospect

Eocene Target on East Prospect Only

Fault Closure to -8214 feet = 410 Ac

STOOIP (unrisked) is 25 mmbbl


Phu Horm Gas Field

Coastal net 12.6% interest (Hess Operator)

Coastal net 2,080 boepd

Feedstock for 750 MW power plant at Nam Phong; gas sold under 15-year gas sales agreement expiring 2021

Contingent gas resources of 5.4 tcf (high case)

3-D seismic shoot planned for 2010

Blocks EU1, E5N, L15/43

Indosinian 1 Unconformity TWT StructurePK-1

Proposed Phu Horm South Well


Proposed Phu Horm South Well


Block L27/43 Coastal net 36% interest

Contains the Dong Mun gas field

Phu Kheng well spudded early July 2009

PK-1 will test shallower Dong Mun shows in optimum structural position

Reached TD late August; currently evaluating for further testing

2-D seismic acquired in Q1 2006 over Dong Mun field and existing prospects/leads

9 additional leads confirmed in the block

Current mapping suggests estimated gas resources in the block could be as high as 2 tcf

Dong Mun-3 exploration well drilled in early 2008 with gas shows in Jurassic and Triassic tight sands


Phu Kheng


Block L13/48Coastal net 22% interest

Appraisal well scheduled to spud in Q3 2009

Si That – wells 1 & 2 both tested gas

ST-2 well tested gas from Permian Dolomites

Current mapping suggests Si That structure could hold gas in place in excess of 1 tcf

2-D seismic acquired in late 2007


Si That B


Offshore (G5/43 & G5/50)“Thai III” regimeRoyalty payable on a sliding scale determined by monthly production volume (5 – 15%)

Current monthly production volume results in 8% effective royalty rateMonthly production of 20,000 bopd results in 10% effective royalty rate

Petroleum Income Tax (“PIT”) payable on net income after deductionsAllowable deductions: Royalty, Operating Expenses, Depreciation Allowance,Special Remuneratory Benefit, Loss CarryforwardDepreciation Treatment

Tangibles depreciated straight-line over 5 yearsPre-production intangibles depreciated straight-line over 10 yearsPost-production intangibles expensed as incurred

Resulting net income taxed at 50% rate

Thailand Fiscal Terms


Special Remuneratory Benefit (“SRB”)Designed as a “Windfall Profits Tax” for high oil price environmentsAssessed on a sliding scale basis determined by “Revenue per Meter Drilled”

Petroleum Revenue applied to sliding scale is adjusted for inflation and exchangerate fluctuations

Coastal’s offshore concessions provide a 600,000 meter “allowance” to be added to actualdrilling footageTax assessed on “Petroleum Profit”

Allowable deductions: Royalty, Depreciation Allowance, Operating Expenses, LossCarryforwardsAll Capex is expensed as incurred, with a special 35% “uplift” on facilities capexAllows for full capital recovery plus uplift

SRB is deductible for PIT purposesOffshore Taxation Expectations*

Coastal does not expect to incur any SRB liability in 2009 or 2010Coastal expects its overall effective tax rate to be 0% in 2009 and approximately 15% in2010

Thailand Fiscal Terms

*Assumes $60MM capex in 2009 and $100M capex in 2010 for development of Bua Ban and Benjarong fields and prospects; $37/bbl realized oil price in 2009 and $47/bbl in 2010; Average daily offshore production of 8.5K bopd in 2009 and 21K bopd in 2010


Legal Disclaimer

The information contained in this presentation (“Presentation”) has been prepared by Coastal Energy Company (“Company”) and is being delivered for informational purposesonly to a limited number of persons to assist them in deciding whether or not they have an interest in investing in the Company. The Presentation has not been independentlyverified and the information contained in it is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain allinformation that a prospective investor may require. While the information contained in it has been prepared in good faith, neither the Company nor its shareholders, directors,officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy,reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interestedparty or its advisers (all such information being referred to as “information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of itsshareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct, express or implied, contractual, torturous,statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained in, or for any errors, omissions or misstatements or forany loss, howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipientwith access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.Information contained in this Presentation is confidential information and the property of the Company. It is made available strictly for the purposes referred to above.The Presentation and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information maynot be reproduced, used or disclosed without the prior written consent of the Company. This Presentation must not be copied, published, reproduced or distributed in whole or inpart at any time without the prior written consent of the Company and by accepting the delivery or making to it of this Presentation, the recipient agrees not to do so and to returnany written copy of this Presentation to the Company at the request of the Company.This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Eachparty to whom this Presentation is delivered or made must make its own independent assessment of the Company after making such investigations and taking such advice as maybe deemed necessary. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgement,analysis and assumption and each recipient should satisfy itself in relation to such matters. Neither the delivery or making of this Presentation nor any part of its contents is to betaken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with anyprospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of theCompany.This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in theCompany, nor shall it, or the fact of its delivery, making or distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, an contractor commitment whatsoever with respect to such securities. Any such solicitation or offer will be made by means of a prospectus to be issued by the Company in due course andany decision to subscribe for securities in the Company should be made solely on the basis of the information contained in such prospectus.


Legal Disclaimer (continued)

The delivery, making or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons who receive this Presentation should informthemselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. Inparticular, this Presentation has not been approved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, itis being communicated in the United Kingdom only to persons to whom this Presentation may be communicated without contravening the financial promotion prohibition inSection 21 of the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and include persons whofall within the category of person set out in Articles 19 and 49 of the Order. Any investment activity to which this Presentation relates in the United Kingdom is available to, andwill only be engaged with such persons and this Presentation should not be acted or relied upon in the United Kingdom by persons of any other description. This Presentationhas not been approved as a prospectus by the UK Financial Services Authority (“FSA”) under Section 87A of the FSMA and has not been filed with the FSA pursuant to theUnited Kingdom Prospectus Rules. No offer of securities in the Company is being or will be made in the United Kingdom in circumstances which would require such aprospectus to be prepared.The securities proposed to be issued by the Company (the "Common Shares") have not and will not be registered under the U.S. Securities Act of 1933, as amended (the"Securities Act") and may not be offered or sold in the United States except pursuant to an exemption from, or transactions not subject to, the registration requirements of theSecurities Act. In addition, other than to a limited number of persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act),neither this Presentation nor any copy of it may be taken or transmitted into the United States or America or distributed directly or indirectly, in the United States of America orto any resident thereof except in compliance with the applicable U.S. securities laws. Any failure to comply with these restrictions may constitute a violation of applicable U.S.securities laws.By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the lawsof any relevant jurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this Presentation shouldnot rely or act upon it.

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