Loon Energy Inc.
TSX VENTURE : LEY

Loon Energy Inc.

July 13, 2007 13:28 ET

Loon Closes $25,000,000 Private Placement

CALGARY, ALBERTA--(Marketwire - July 13, 2007) - Loon Energy Inc. ("Loon") (TSX VENTURE:LEY) is pleased to announce the closing of a private placement of 25 million common shares at an issue price of $1.00 per common share for gross proceeds of $25 million. All of the common shares were taken up by Kulczyk Investment House International S.a.r.l. ("Kulczyk Investment House"), formerly known as "Kulczyk Group International S.a.r.l".

The private placement increases the total shareholdings of Kulczyk Investment House in Loon to 37,279,763 common shares, or approximately 39% of the issued and outstanding common shares of Loon. In early May (see press release of Loon dated May 14, 2007) Kulczyk Investment House acquired in 12,279,763 common shares of Loon in a private transaction.

The participation of Kulczyk Investment House in the private placement was approved by the shareholders of Loon at the annual and special general meeting held on June 27, 2007.

Loon anticipates that the increased shareholding of Kulczyk Investment House in Loon will mark the beginning of a strategic alliance between the two which may expose Loon to additional opportunities and alternative sources of capital.

Kulczyk Investment House is a recently incorporated international holding company, of Polish origin. It takes its name from Jan Kulczyk, the Polish entrepreneur and international businessman. He is on the Board of Directors of Green Cross International (www.greencrossinternational.net), an international environmental organization whose Chairman is Mikhail Gorbachev. At one point, companies controlled by Dr. Kulczyk controlled 23% of the assets of the Polish Stock Exchange. Kulczyk Investment House has produced a strong track record of delivery in Poland and the Central and Eastern Europe region, investing in well known brands such as Porsche, Audi and Warta, the insurance company, while partnering with global companies such as SABMiller and France Telecom. The company is now entering a new period of global development, taking its expertise to an international dimension.

Loon is an international oil and gas exploration and production company having interests in Brunei, Syria, Colombia, Peru and Slovenia (see www.loon-energy.com for further information), with offices in Calgary, Alberta, Canada and Dubai, United Arab Emirates. For further information, please 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 has neither approved nor disapproved of the information contained herein.

Contact Information

  • Loon Energy Inc. (Calgary)
    Norman W. Holton
    Executive Chairman
    (403) 264-8877
    or
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    President and Chief Executive Officer
    +971-4-339-5212
    or
    Loon Energy Inc. (Dubai)
    Jock M. Graham
    Executive Vice President
    +971-4-339-5212
    Website: www.loon-energy.com
    or
    Brisco Capital Partners Corp. (Calgary)
    Gordon Aldcorn
    Investor Relations
    (403) 262-9888