EastCoast Energy finalizes terms of rights offering

TORTOLA, BRITISH VIRGIN ISLANDS – EastCoast Energy Corporation (“EastCoast”) is pleased to announce that it has finalized the terms of a rights offering, which is expected to result in gross proceeds of approximately $5.49 million.

EastCoast will be issuing, to holders of its outstanding Class A common shares and Class B subordinate voting shares (“Class B shares”) of record at the close of business on February 7, 2005, transferable rights certificates to subscribe for Class B shares before 5:00 p.m. (Calgary time) on March 4, 2005 on the terms set out in the rights offering circular to be available on the SEDAR website at www.sedar.com. Each shareholder will receive one right for each Class A share and Class B share held on the record date. The holders of rights will be entitled to acquire one Class B share for every ten rights held upon payment of the subscription price of $2.60 per share. The rights have been conditionally approved for listing on the TSX Venture until 12:00 noon (Calgary time) on March 4, 2005. Shareholders who exercise all of their rights will also be entitled to acquire additional Class B shares, if available, pursuant to an additional subscription privilege as described in the rights offering circular.

W. David Lyons, the Chairman of EastCoast and a principal shareholder of EastCoast, has indicated that he will, directly or indirectly, if there are available additional Class B shares, purchase such number of additional Class B shares under the additional subscription privilege, which together with the common shares purchased by him, directly or indirectly, under the basic subscription privilege will, when multiplied by the subscription price, be equal to a maximum of $3,000,000.

The rights offering is subject to the completion of all applicable regulatory approvals including that of the TSX Venture Exchange.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast’s control, including the impact of general economic conditions in the areas in which EastCoast operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with oil and gas operations, therefore EastCoast’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that EastCoast will derive therefrom.

For further information please contact:

Peter R. Clutterbuck, CEO
+44 (0) 7768 120727

Nigel A Friend, CFO
+255 (0)22 2138737

EastCoast Energy announces its intention to raise approximately Cdn$ 5 million through a rights issue

TORTOLA, British Virgin Islands — EastCoast Energy Corporation (“EastCoast Energy” or the “Company”) announces that the Board of Directors has approved, in principal, the raising of approximately Cdn$ 5 million by means of a rights issue. The transaction will require the approval of the TSX Venture Exchange (“TSXV”).

It is intended that:

  • each holder of a Class B Subordinated Voting share (“Class B Share”) will receive one right for each Class B Share held and that ten rights will entitle the holder to subscribe for one Class B Share at a price of Cdn$ 2.60.
  • each holder of a Class A Common share (“Class A Share”) will receive one right for each Class A Share held and that ten rights will entitle the holder to subscribe for one Class B Share at a price of Cdn$ 2.60.

The subscription price of Cdn$ 2.60 represents a 15 % discount to the closing price of the Class B Shares on 19 November, 2004.

Under the terms of the rights issue, the Company will issue a maximum of 2,113,743 Class B Shares. The non-executive Chairman who currently holds 3,104,745 Class B Shares and 1,739,175 Class A Shares, has indicated that he will take up his full rights allocation.

The funds will primarily be used to develop the Company’s existing gas assets in Tanzania and to pursue new options for growth.

EastCoast Energy Corporation Limited is a TSXV listed company focused on the production of Tanzanian natural gas and the sale of “Additional Gas” to markets in East Africa. The Company was spun out from PanOcean Energy Corporation and began trading on the TSXV as a separate public company on 31 August 2004 under the trading symbols ECE.B and ECE.A. The company is headquartered in Tortola, British Virgin Islands and maintains its operations offices in Dar es Salaam, Tanzania.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast Energy’s control, including:  the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, government intervention, third party contractual behaviour,  the speed at which gas markets develop,  the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with operating a  limited number of producing wells and gas related infrastructure, therefore EastCoast Energy’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that EastCoast Energy will derive therefrom.

For further information please contact:

W. David Lyons, Chairman
+255 (0)22 2138737

Nigel A Friend, CFO
+255 (0)22 2138737

EastCoast Energy commences natural gas sales in Tanzania

TORTOLA, British Virgin Islands. EastCoast Energy Corporation (“EastCoast Energy” or the “Company”) announces that it has commenced industrial natural gas sales to customers in Dar es Salaam, Tanzania. An estimated 1.4 MMcf/d of natural gas is now flowing from Tanzania’s Songo Songo offshore field to Kioo Limited and Tanzania Breweries Limited through a ring distribution system constructed, owned and operated by EastCoast and its partner, Tanzania Petroleum Development Corporation (“TPDC”). The price for the sale of gas to industrial enterprises is calculated by reference to the Heavy Fuel Oil price in Tanzania and is initially expected to be in the region of US$5.20 — US$5.41 per Mcf.

Four other Dar es Salaam area companies have also signed contracts for EastCoast and TPDC to supply 1.3 MMcf/d of interruptible “Additional Gas” once their boilers have been converted to burn natural gas forecast for the end of the first quarter 2005. The gas being marketed by EastCoast is produced from the Songo Songo gas field which came onstream 20 July 2004. Currently connections to three of these additional customers have been completed and a fourth connection will be constructed in the first quarter of 2005.

Natural gas production at Songo Songo Island, approximately 200 kilometres south of Dar es Salaam, is operated by EastCoast Energy under contract to Songas Limited (“Songas”) and currently comes from four wells. The gas is transported by marine and land pipelines to Dar es Salaam where it is used primarily as fuel for the Ubungo electrical power plant. Natural gas required to fuel the power plant is classified as “Protected Gas” and is owned by Songas. Currently the “Protected Gas” required at Ubungo powers four gas turbines. Average current power plant gas use is approx 33 MMcf/d. This volume will increase when a fifth gas turbine is commissioned near the end of 2004. Surplus gas production from Songo Songo is called “Additional Gas” and is owned by TPDC and EastCoast Energy.

EastCoast Energy Corporation Limited is a Toronto Venture Exchange (TSXV) listed company focused on the production of Tanzanian natural gas and the sale of “Additional Gas’ to markets in East Africa. The Company was spun out from PanOcean Energy Corporation and began trading on the TSXV as a separate public company on 31 August 2004 under the trading symbols ECE.B and ECE.A. The company is headquartered in Tortola, British Virgin Islands and maintains its operations offices in Dar es Salaam, Tanzania.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast Energy’s control, including:  the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, government intervention, third party contractual behaviour,  the speed at which gas markets develop,  the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with operating a  limited number of producing wells and gas related infrastructure, therefore EastCoast Energy’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that EastCoast Energy will derive therefrom.

For further information please contact:

W. David Lyons, Chairman
+255 (0)22 2138737

Nigel A Friend, CFO
+255 (0)22 2138737

EastCoast Energy appoints new President to head Tanzanian operations

TORTOLA, British Virgin Islands — The Board of Directors of EastCoast Energy Corporation (“EastCoast” or the “Company”) has announced the appointment of Peter Clutterbuck as President and CEO effective immediately.  He replaces W. David Lyons who will assume the position of non-executive Chairman.

Since 2001, Mr. Clutterbuck has been Vice President Operations, and later Acting President of the company’s Tanzania natural gas production and marketing businesses, now operating as EastCoast Energy Corporation. He has been instrumental in advancing the development of the Songo Songo natural gas field offshore Tanzania, its downstream infrastructure, and the building of new industrial natural gas markets in East Africa for incremental gas production from the Songo Songo gas field.

Mr. Clutterbuck’s experience includes 15 years with BP Group in the Middle East, North Sea and North Slope Alaska, where he held operations and management positions. Subsequently, he managed a number of independent oil companies operating in the former Soviet Union, South America, and Asia. Mr. Clutterbuck has substantial experience managing onshore and offshore oil and gas operations, and has served on the Boards of public companies in both executive and non-executive positions.

Mr. Clutterbuck has an Honours Masters Degree in Engineering from Cambridge University, and has served on the Board of the Society of Petroleum Engineers in London since 1998, where he has been active in advancing continuing education programmes and professional development within the petroleum industry. EastCoast Energy Corporation is a TSX Venture Exchange (TSXV) listed company focused on the production of Tanzanian natural gas and the sale of “Additional Gas” to markets in East Africa.  The Company was spun out from PanOcean Energy Corporation as a separate public company on 31 August 2004.  EastCoast Energy Class B Subordinate Voting Shares and Class A Common Shares are listed for trading on the TSXV under the trading symbols ECE.A and ECE.B.  The company is headquartered in Tortola, British Virgin Islands and maintains its operations offices in Dar es Salaam, Tanzania. The TSXV neither approves nor disapproves the information contained in this news release.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast Energy’s control, including:  the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, government intervention, third party contractual behaviour,  the speed at which gas markets develop,  the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with operating a  limited number of producing wells and gas related infrastructure, therefore EastCoast Energy’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that EastCoast Energy will derive therefrom.

For further information please contact:

Peter Clutterbuck, President and CEO
+255 (0)22 2138737

Nigel A Friend, CFO
+255 (0)22 2138737

PanOcean News Release announcing that the listing of EastCoast Energy Corporation on TSX Venture Exchange has been approved

St. Helier, Jersey.  Pan-Ocean Energy Corporation Limited (“PanOcean”, or the “Company”) has announced that the listing of EastCoast Energy Corporation (“EastCoast Energy”) on TSX Venture Exchange has been approved. The listing marks the successful completion of the spinout of the Company’s Tanzania natural gas business unit to shareholders.

Effective at the opening of trading on Tuesday, 31 August 2004 (the “Listing Date”), the EastCoast Energy Class A Common Shares and EastCoast Energy Class B Subordinate Voting Shares will be listed and posted for trading on TSX Venture Exchange under the trading information set out below:

Stock Symbols:ECE.ACUSIP:  G29067 10 8
ECE.BCUSIP:  G29067 11 6

Also effective at the opening of trading on Tuesday, 31 August 2004, the Class A Common Shares (the “Class A Shares”) (Symbol: POC.A) and the Class B Subordinate Voting Shares (the “Class B Shares”) (Symbol: POC.B) of Pan-Ocean will be listed and posted for trading on TSX under the same trading symbols, but with new CUSIP information as set out below:

Stock Symbols:POC.A CUSIP:  G6890N 12 8
POC.BCUSIP:  G6890N 13 6

The foregoing results from a recently effected scheme of arrangement (the “Arrangement”) involving the Company and a wholly-owned subsidiary of the Company, EastCoast Energy, pursuant to which, as applicable:

  1. each current Class A Share of the Company will be exchanged for one new Class A Common Share (the “New Class A Share”) of the Company and one EastCoast Energy Class A Common Share (the “EastCoast Class A Share”); and
  2. each current Class B Share of the Company will be exchanged for one new Class B Subordinate Voting Share (the “New Class B Share”) of the Company and one EastCoast Energy Class B Subordinate Voting Share (the “EastCoast Class B Share”).

Letters of Transmittal were mailed to all registered holders of the Class A Shares and Class B Shares of the Company on or about 18 May 2004 and replacement Letters of Transmittal were mailed to registered U.S.-only holders of the Class A Shares and Class B Shares of the Company on or about 19 August  2004 requesting registered shareholders to return the duly completed and executed Letters of Transmittal, together with their certificates representing the Class A Shares and Class B Shares of the Company, to CIBC Mellon Trust Company in Toronto in order to receive certificates representing, as applicable, the New Class A Shares and EastCoast Class A Shares or the New Class B Shares and EastCoast Class B Shares to which they are entitled. Beneficial or non-registered shareholders, being shareholders not holding share certificates, should contact their respective investment dealers to confirm that their holdings are exchanged by their investment dealers.

In lieu of fractional shares, the number of New Class A Shares, EastCoast Energy Class A Shares, New Class B Shares or East Coast Energy Class B Shares will be rounded down to the next lowest whole number.  No certificates representing fractional interests will be issued pursuant to the Arrangement.

For greater clarity, Monday, 30 August will be the last day for which purchases of PanOcean Class A or Class B shares will result in the purchaser receiving both PanOcean and EastCoast Energy shares. All purchases of PanOcean shares on or after the Listing Date, being on or after Tuesday, 31 August 2004, will be for shares of PanOcean only and not EastCoast Energy.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond PanOcean’s control, including:  the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with oil and gas operations, therefore PanOcean’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that PanOcean will derive therefrom .

For further information please contact:

W. David Lyons, Chairman
+255 (0)22 2138737

Nigel A Friend, CFO
+255 (0)22 2138737