Loon Energy Inc.

Loon Energy Inc.

December 11, 2008 14:15 ET

Loon Announces Closing of Plan of Arrangement

CALGARY, ALBERTA--(Marketwire - Dec. 11, 2008) - Loon Energy Inc. ("Loon" or "Company") (TSX VENTURE:LEY) is pleased to announce that the previously announced plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta) to reorganize the Company has been completed. The Arrangement was approved at the special meeting of securityholders held on December 9, 2008 and by the Court of Queen's Bench of Alberta on December 10, 2008. Approximately 93.64% of the votes cast by the shareholders and the optionholders present at the meeting in person or by proxy, voting together as a single class, voted in favour of the special resolution to approve the Arrangement. Further, approximately 92.62% of the votes cast by the shareholders present at the meeting, in person or by proxy, voted in favour of the ordinary resolution to approve the stock option plan of Loon Energy Corporation.

Pursuant to the Arrangement, the assets of the Company in Colombia and Peru have been transferred to a new company named Loon Energy Corporation ("Loon Corp"), the Company, which retains the assets in Brunei, Syria, Slovenia and an investment in Jura Energy Corporation, has been renamed "Kulczyk Oil Ventures Inc." ("Kulczyk Oil") and Kulczyk Oil closed a non-brokered private placement of 48,000,000 common shares (the "Kulczyk Oil Shares") at a price of $0.25 per Kulczyk Oil Share for gross proceeds of $12,000,000. The sole subscriber to the private placement was Kulczyk Investments S.A., the major shareholder of the Company.

Shareholders of the Company will receive, for each Loon common share (the "Loon Shares") held, one Kulczyk Oil Share and one common share (a "Loon Corp Share") of Loon Corp, subject to receipt by the depositary of the duly completed letters of transmittal and certificates representing the Loon Shares and subject to the exercise of the put right. Shareholders holding an aggregate of 18,565,759 Loon Shares (representing approximately 19.34% of the then issued and outstanding Loon Shares) exercised their put right under the Arrangement to require Kulczyk Oil to purchase the Kulczyk Oil Shares that would otherwise be deliverable to those Shareholders under the Arrangement at a price of $0.25 per share.

After the closing of the Arrangement, the Loon Shares will be delisted from the TSX Venture Exchange and an application will be made in due course to list the Kulczyk Oil Shares on the Warsaw Stock Exchange. The Loon Corp Shares are expected to be listed on the TSX Venture Exchange sometime next week.

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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