Loon Energy Inc.

Loon Energy Inc.

October 05, 2007 19:22 ET

Loon Abandons Well in Tunisia

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2007) - Loon Energy Inc. ("Loon" or the "Company") (TSX VENTURE:LEY) announces that Loon and its partners have decided to plug and abandon the Bhayra Rigo # 1 well after drilling to a total depth at 1,739 metres. The well was drilled from 1,126 metres to total depth with continued loss of circulation and therefore no drilling samples were recovered over the interval. Three cores were cut in order to gather information on the interval. Core 1 was obtained from 1,306 to 1,312.5 metres, core 2 from 1,602 to 1,611 metres and core 3 from 1,730 to 1,739 metres. While the cores did show good inter-crystalline, vuggy and fracture porosity, there was no evidence of hydrocarbons. Loon has a 15% paying interest and a 10% working interest in the Bhayra Rigo #1 well.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and an indirect interest in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary, Alberta, Canada, Dubai, United Arab Emirates and Bandar Seri Begawan, Brunei Darussalam. For further information, please refer to the Loon website (www.loon-energy.com) or contact the following:

Some of the statements contained in this release may be forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors, which could cause actual results to differ from these forward-looking statements, include the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

The TSX Venture Exchange neither approves nor disapproves of the information contained herein.

Contact Information

  • Loon Energy Inc. (Calgary)
    Norman W. Holton
    Executive Chairman
    (403) 264-8877
    Email: nholton@loon-energy.com
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    President and Chief Executive Officer
    Email: telliott@loon-energy.com
    Loon Energy Inc. (Dubai)
    Jock M. Graham
    Executive Vice President
    Email: jgraham@loon-energy.com
    Brisco Capital Partners Corp. (Calgary)
    Gordon Aldcorn
    Investor Relations
    (403) 262-9888
    Email: galdcorn@shaw.ca