Loon Energy Inc.

Loon Energy Inc.

December 18, 2007 09:01 ET

Loon Participates in Colombia Well

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2007) - Loon Energy Inc. ("Loon" or the "Company") (TSX VENTURE:LEY) announces its participation in the drilling of the Delta #1 well in Colombia. The well, spud on December 9th, is located within a 60,817 hectare block of lands covered by the Buganviles Association Contract (the "Contract") between Holywell Resources S.A. ("Holywell") and Ecopetrol, the national oil company of Colombia. The Buganviles lands will reach the end of their primary term during the drilling of the Delta #1 well. The well will be drilled to a total depth of approximately 8,000 feet. Estimated costs to drill and complete is approximately $3.9 million with Loon's share being slightly over $1 million.

In the event that the well is cased for commercial production, fifty percent of the lands or approximately 76,000 acres will be retained for a period of two years. In the event that the well is not cased for commercial production, the lands will expire. Under the terms of an agreement with Kappa Energy Colombia Limited S.A. ("Kappa"), Loon will participate through Kappa in an arrangement between Kappa and Holywell and will pay 26.4% of the costs of the drilling and completion of the Delta#1 well to earn a 20% working interest in the well and any of the retained lands.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and exposure to a major exploration and development program in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary (Canada), Dubai (United Arab Emirates) and Bandar Seri Begawan (Brunei Darussalam).

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.

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