Prospects

Coastal believes that it owns a highly prospective asset base, as evidenced by the Company’s past success in finding and developing substantial oil fields over the last several years.  The Company has identified over 30 highly attractive prospects within the Songkhla and Bua Ban production licenses.  Management estimates that these prospects comprise greater than 450 Mmbbls of recoverable prospective resources on an unrisked basis.  All prospects are located in close proximity to current infrastructure, resulting in lower incremental costs and faster timing to establish production upon exploration success.  The Company’s Songkhla and Bua Ban production licenses grant Coastal the right to develop its highly prospective asset base for 20 years following the grant dates (2008-2009).