Loon Energy Corporation

Loon Energy Corporation

April 07, 2009 08:30 ET

Loon and Petro Vista Terminate Discussions

CALGARY, ALBERTA--(Marketwire - April 7, 2009) - Loon Energy Corporation (TSX VENTURE:LNE) ("Loon") announces that it has been unable to conclude an agreement with Petro Vista Energy Corporation on their proposed business combination and that the Letter of Intent between them announced on February 23, 2009 has been terminated.

Norman W. Holton, President and CEO of Loon commented: "Loon is in a strong financial position with approximately $3 million in cash, no debt and minimal financial commitments. The company, which remains focused on Colombia and Peru, will continue to seek out and evaluate both corporate and other opportunities to increase shareholder value."

Loon owns a 20% interest in the Buganviles Association Contract area in the Upper Magdalena Valley area of central Colombia which includes a well producing approximately 50 barrels of oil per day. In Peru, the Company is carried through the first US$10.75 million of costs on a seismic program to be conducted on Block 127, one of the largest exploration licenses in the Amazon Basin area of northeast Peru with an area of approximately 2.4 million acres.

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