July 2009 Presentation CEN

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

Corporate Presentation

July 2009


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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 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 Energys control.

Actual results may differ substantially from the forward-looking

statements. This presentation does not contain all of the information

contained in the preliminary prospectus of Coastal Energy Company,

which should reviewed for complete information.


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The Company Overview

Investment Highlights

Asset Overview

Offshore Gulf of Thailand

Onshore Thailand

Investor Information

Reserve Base

Explanation of Thailand Fiscal Terms

Forecasted Production Profile

Corporate Information

Strategy and Objectives

Presentation Outline


4/254Copyright Coastal Energy Company 2009 | All Rights ReservedCorporate Presentation July 2009

Company Overview

International Oil and Gas Company with assets in Thailand

Established Reserve and Production Base

Total production 9,000 boepd

Oil production from Songkhla field in the Gulf of Thailand 7,000 bopd

Net gas production from Phu Horm field onshore Thailand 2,000 boepd

Proven (1P) Reserves 26.6 mmboe

Proven plus Probable (2P) Reserves 62.1 mmboe

Proven plus Probable plus Possible (3P) Reserves 75.7 mmboe

Contingent and Prospective Resources 773.0 mmboe

Balanced portfolio of production, development and exploration assets:

Offshore Thailand Oil production with appraisal and exploration upside

Onshore Thailand Gas production with appraisal and exploration upside

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



Investment Highlights

Established production offshore and onshore Thailand: 9,000 boepd

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

Bua Ban development expected to begin late Q409

Significant offshore exploration potential

346 mmbbl of Prospective Resources (high estimate)

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 Thailand - 100% of blocks G5/43 & G5/50:

Songkhla Field: Average production of 7,000 bbl/d in Q209

Oligocene development wells and a water injector are planned forQ309; expected to spud late August

Songkhla B Potentially high-impact exploration well planned to spudin October

Bua Ban Field: Drilling expected to commence late 2009

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

Onshore Thailand Balanced Risk Portfolio:

12.6% net working interest in the Phu Horm gas field currently producing12.6 mmcfd on average; 2,000 boepd net to Coastal

36.1% interest in block L27/43 contains the undeveloped Dong Mun gasfield; Phu Kheng well scheduled to spud June 2009

21.7% 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

36.1% interest in block L15/43 surrounds the Phu Horm field

Total Q209 average production of approximately 9,000 boepd

Asset Overview



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Top Lower Oligocene Sand

Gulf of ThailandBlock G5/43

SA-03Well

SA-01Well

Songkhla #1Original

Discovery Well

Block G5/43 - Songkhla Field

Coastal drilled three successful wells in Q4 2008

Average production for Q209 was 7,000 bopd

Production from the A-01 and A-03 wells began late

February 2009 from the Lower Oligocene reservoir

Songkhla Lower Oligocene 2P Reserves increased by 220%

to 15.7 mmbbl from 4.9 mmbbl at December 31, 2007

WellName NetPay(ft) PorosityFeet structurallyhigherthan

Songkhla#1Well

SongkhlaA01

(LowerOligocene) 126 20% 86

SongkhlaA03

(LowerOligocene) 152 20% 47

SongkhlaA07

(Eocene) 136 16.5% N/A



Block G5/43 - Songkhla Field

Top Eocene Structure Depth Map

SA - 01

SA - 03

SA - 07

2P Reserves at Songkhla now total 19.7 mmbbl

Production from A-07 Eocene exploration well was

tied in mid-April 2009

A-07 well has been shut-in since June 6th,

2009

2P Reserves of 3.9 mmbbl assigned to the

Songkhla Eocene structure; the potential of the

Eocene reservoir is significant

Additional Eastern Eocene Fault Block

Songkhla Eocene Fault Block B is included in

3P reserves of 7.6 mmbbl



Bua Ban-1

Bua Ban-2A

Asset Overview Offshore Gulf of Thailand

Oligocene Isopach Map

Note:Based on Current CEO mapping estimates

Bua Ban Field:

6 Development wells and 2 injectors tocommence drilling late Q4 2009

Proved & Probable recoverable reserveestimate is 21.8 mmbbl

Original discovery well tested 768 bopd fromLower Oligocene sandstones

3 well appraisal programme completed inAugust 2005 encountered Lower Oligocenereservoir with estimated net pay ranging from66 77 ft

Confirmed oil column of 577 ft 724 ft

3-D Seismic acquired in Q4 2006

Block G5/43



G5/43 Fields and Prospects

Confirmed prospect inventory includes a variety of

structural and stratigraphic targets

Songkhla

Songkhla B low-risk exploration prospectsimilar in size and structure to Songkhla Main;

good Lower Oligocene and Eocene targetsBua Ban

5 prospects surrounding Bua Ban (includingBenjarong Lower Oligocene) evaluated byHuddleston & Co.

BenjarongBenjarong Eocene prospect evaluated by

Huddleston & Co. And assigned contingentresources of 17.5 mmbbl; requires further drillingto confirm reserve base

Existing 3D coverage over discovered fields andseveral undrilled mapped prospects

Ko Khra Basin and Nakhon Basin remain unexploredand require seismic surveys

SongkhlaSouth

Bua BanField

BenjarongEast 1

BenjarongEast 2

Songkhla MainOligocene

SongkhlaMain

Eocene

Songkhla BMiocene

Bua BanNorth A

SongkhlaNorth

Benjarong-1

Songkhla S-1

SongkhlaSouthwest

BenjarongEocene

BenjarongLower

Oligocene

Bua Ban

North D

Bua BanNorth C

Bua Ban

Northwest A

Bua BanNorthwest B

Bua BanNorth B

Songkhla WestOligocene Unit

4

Songkhla WestOligocene Unit 2

Songkhla AMiocene

Songkhla BEocene

Songkhla BOligocene

Legend

Reserves

Prospective Resources

Contingent Resources

Additional CoastalProspects


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Offshore Reserves & Resources

Reserves (mmbbl) 1P 2P 3P

Songkhla Lower Oligocene 9.8 15.7 19.7

Songkhla Eocene 1.1 3.9 7.6

Bua Ban Main 7.2 21.8 27.8

Total 18.1 41.4 55.1

Prospective Resources*

Songkhla North 4.1

Songkhla West Oligocene Unit 2 8.8

Songkhla West Oligocene Unit 4 8.3

Songkhla South-West 2.6

Songkhla B Oligocene 5.6Songkhla B Eocene 2.5

Songkhla South 2.7

Songkhla Total 34.6

Bua Ban North A 89.0

Bua Ban North B 11.1

Bua Ban North C 44.1

Bua Ban North D 23.1

Benjarong Lower Oligocene 144.4

Bua Ban Total311.7

G5/43 Total Prospective Resources 346.3

Contingent Resources*

Benjarong 17.5

Songkhla 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 17.5

Songkhla B Miocene 3.6

Songkhla Total 21.1

Bua Ban Northeast A 23.4

Bua Ban Northeast B 10.2

Benjarong 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)


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

12.6% interest)

2,000 boepd net to Coastal

L27/43 Contains the Dong Mun undeveloped gas field and

several un-drilled prospects (Coastal net 36.1% interest); Phu

Kheng well spudded early July 2009; expect results early

August

L13/48 Contains Si That discoveries (Coastal net 21.7%

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

L15/43 Surrounds Phu Horm and contains a potential

southern extension of the Phu Horm field (Coastal net 36.1%

interest)

Asset Overview Onshore Thailand


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Phu Horm Gas Field

Coastal net 12.6% interest (Hess Operator)

Coastal net 2,000 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



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Block L27/43 Coastal net 36.1% interest

Contains the Dong Mun gas field

Phu Kheng well spudded early July 2009

PK-1 will test shallower Dong Mun shows inoptimum structural position

Results expected early August

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


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Block L13/48 Coastal net 21.7% 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


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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 Persons Report prepared by Huddleston & Co., effective December 31, 2008


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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


$264.9 $112.9 $2.61 $1.11C$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


$1,882.9 $747.2 $18.54 $7.36 C$8.03

Notes: All amounts in US dollars except where noted

After-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 December 31, 20081 CAD = 0.916 USD as of May 31, 2009

Th il d Fi l T


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Offshore (G5/43 & G5/50) Thai III regime

Royalty payable on a sliding scale determined by monthly production volume (5 15%)

Current monthly production volume results in 8% effective royalty rate

Monthly production of 20,000 bopd results in 10% effective royalty rate

Petroleum Income Tax (PIT) payable on net income after deductions

Allowable deductions: Royalty, Operating Expenses, Depreciation Allowance,Special Remuneratory Benefit, Loss Carryforward

Depreciation Treatment

Tangibles depreciated straight-line over 5 years

Pre-production intangibles depreciated straight-line over 10 years

Post-production intangibles expensed as incurred

Resulting net income taxed at 50% rate

Thailand Fiscal Terms

Th il d Fi l T


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Special Remuneratory Benefit (SRB)

Designed as a Windfall Profits Tax for high oil price environments

Assessed on a sliding scale basis determined by Revenue per Meter Drilled

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

Coastals offshore concessions provide a 600,000 meter allowance to be added to actualdrilling footage

Tax assessed on Petroleum Profit

Allowable deductions: Royalty, Depreciation Allowance, Operating Expenses, Loss

Carryforwards

All Capex is expensed as incurred, with a special 35% uplift on facilities capex

Allows for full capital recovery plus uplift

SRB is deductible for PIT purposes

Offshore Taxation Expectations*

Coastal does not expect to incur any SRB liability in 2009 or 2010

Coastal 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/bblrealized oil price in 2009 and $47/bbl in 2010; Average daily offshore production of 8.5K bopd in 2009 and 21K bopd in 2010

F t d P d ti P fil


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Forecasted Production Profile

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2007 2008 2009

BarrelsOilEquivalen

tperdayatEnd

ofYear

Offshore Onshore

*Production rate as at 12/30/2008 as production was shut-in on 12/31/2008 for rig demobilization

C t I f m ti


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98,630,720

112,061,465

US$20.5 million

US$37.8 million

US$17.8 million

Total number of outstanding shares (giving effect to the May 2009equity offering)

Fully diluted share count (giving effect to the May 2009 equityoffering)

Cash (giving effect to the May 2009 equity offering)

Reserve Based Credit Facility Outstanding (post 6/30/09redetermination)

Other Short Term Debt

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

Corporate Information



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Continue to develop existing assets and build production

Prove up additional reserves within current portfolio

Identify orphaned opportunities for acquisition or joint venture

Geographic focus and strategy

Primary focus Thailand and Southeast Asia

Secondary focus Countries with developing economies and favourableoperating regimes


Contact Details


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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 77098Bangkok, Thailand 10010

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

Fax: +1 (713) 877-7192

[email protected]

www.coastalenergy.com


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July 2009 Presentation CEN