Coastal Energy Company Grants Stock Options

Economy News Wednesday January 11, 2012 06:16 —Energy

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 directors and officers were granted the following options.

Total

Options

Number of Outstanding

Options

This After This

  Director / Officer         Grant       Grant
-----------------------  ---------  -----------
  Randy L. Bartley           635,303    4,065,807
  William C. Phelps          262,281      939,193
  John Griffith              211,428      853,512
  Stephen M. Holder           40,799      305,272

  Jerry A. Moon, Jr.          73,739      434,052

--------- ----------- Subtotal directors

        and officers       1,223,550    6,597,836

All other directors and
officers

  All other employees        315,223    1,950,957

--------- -----------

Total all options 1,538,773 8,548,793

========= ===========

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:

Number Total RSUs

of RSUs Outstanding

This After This

  Director / Officer        Grant      Grant
-----------------------  -------  -----------
  Randy L. Bartley          66,899       66,899
  William C. Phelps         27,069       27,069
  John Griffith             20,321       20,321
  Stephen M. Holder          5,414        5,414

  Jerry A. Moon, Jr.         9,745        9,745

------- ----------- Subtotal directors

        and officers       129,448      129,448

All other directors and
   officers                 37,897       37,897

  All other employees       38,283       38,283

------- -----------

       Total all RSUs      205,628      205,628

======= ===========

The Coastal Energy Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10062

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.

CONTACT: 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

Stifel Nicolas Weisel (Broker)

+44 (0) 20 3205 3615

Paul Colucci

Macquarie Capital (Europe) Limited (Broker)

+44 (0) 20 3037 2000

Ben Colegrave

Paul Connolly

Buchanan Communications

+44 (0) 20 7466 5000

Tim Thompson

Katharine Sutton

Ben Romney

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