Loon Energy Inc.

Loon Energy Inc.

May 02, 2007 13:11 ET

Loon Appoints Chief Financial Officer, Releases Audited Financial Statements, Summarizes 2006 Activity and 2007 Progress

CALGARY, ALBERTA--(CCNMatthews - May 2, 2007) - Loon Energy Inc. ("Loon" or the "Company") (TSX VENTURE:LEY) is pleased to announce the appointment of Paul H. Rose CA as Vice-President and Chief Financial Officer of the Company. Mr. Rose will provide services to the Loon pursuant to a shared services arrangement with another international oil and gas exploration and development company. "Paul's extensive background in international operations will be a significant benefit to Loon" said Norm Holton, the Chairman of Loon.

The audited financial statements and MD&A of Loon have been filed on www.sedar.com with the appropriate regulatory authorities. The statements and MD&A were filed one day after the due date, a circumstance that Loon expects to avoid in the future with the oversight of our new Chief Financial Officer.

In 2006, the projects and potential available to Loon continued to grow as the Company made considerable progress with several deals finalized in Asia and negotiations for large permits underway in the Middle East and South America.

During 2006 Loon:

- negotiated and signed a Production Sharing Agreement covering approximately 550,000 acres (approximately 2,253 km2) in Brunei;

- arranged a US$6.5 million bank guarantee for the Brunei project;

- sold its interests in an exploration and development project in Pakistan for approximately 7.4 million common shares of Jura Energy Corporation currently valued at more than $10.5 million;

- was granted the exclusive negotiating right on a 2.39 million acre (approximately 9,675 km2) block in a prolific hydrocarbon producing area of northeast Peru; and

- received the exclusive negotiating right for a 2.5 million acre (approximately 3,900 km2) block of prospective acreage in northwest Syria.

During the first four months of 2007, Loon has made substantial progress and since the end of the 2006 fiscal year Loon has:

- entered into a seismic option agreement for Brunei Block L under which Nations Petroleum Brunei Limited, a subsidiary of Nations Petroleum Company Ltd., will shoot a 300 km2 onshore 3D seismic survey later in 2007;

- tied-in the Ventilador-2 gas well in Colombia which was drilled by Loon et al in late 2005;

- substantially completed negotiations with Syrian authorities for a production sharing contract for Block 9;

- disclosed on April 24, 2007 a claim by a third party, considered by the Company to be without merit, against the Brunei interests of the Company and the legal initiatives undertaken by the Company to defend its interests; and

- effectively finalized negotiations with PeruPetro for an exploration license contract covering Block B-127.

More detailed information on each of the project areas may be found in the MD&A of the Company for the year ended December 31, 2006 which has been filed on www.sedar.com.

Activities at Loon have escalated consistently over the past several years, a trend which management anticipates will continue as the Company evaluates and seeks involvement in other prospective areas where projects that enhance shareholder value can be developed.

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
    (403) 264-8877
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    Loon Energy Inc. (Dubai)
    Jock M. Graham