Loon Energy Corporation

Loon Energy Corporation

December 18, 2008 22:52 ET

Loon Energy Corporation Listed on TSX-V

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - Loon Energy Corporation ("Loon Corp" or "Company") has been advised by the TSX Venture Exchange that its common shares will commence trading on Friday, December 19th, 2008 under the trading symbol "LNE". The common shares of Loon Energy Inc. (Trading Symbol:LEY) which have been halted pursuant to a plan of arrangement since December 10, 2008, will be delisted at the same time.

Pursuant to the plan of arrangement (the "Arrangement") closed on December 10, 2008, the assets of Loon Energy Inc. (now Kulczyk Oil Ventures Inc.) in Colombia and Peru were transferred to Loon Corp, a new company set up prior to the closing of the Arrangement for the purpose of receiving the assets and each shareholder of Loon Energy Inc. received one share of Loon Corp for each Loon Energy Inc. share held. Loon Corp has 95,991,364 common shares issued and outstanding eligible to trade on the TSX-V.

In Colombia, Loon Colombia Limited, a wholly-owned subsidiary of Loon Corp owns a 20% working interest in a new oil discovery and approximately 75,000 acres of associated lands through its 20% working interest in the Buganviles Association Contract. The Delta-1 well, drilled on the Buganviles lands in the Upper Magdelena Valley area of central Colombia, has averaged more than 50 barrels of oil production per day since being completed in late September.

In Peru, Loon Peru Limited ("Loon Peru"), a wholly-owned subsidiary of Loon Corp acquired a 100% working interest by entering into an Exploration License Contract in August, 2007, which gives it the right to explore for and produce oil and gas from Block 127, a 2.4 million acre exploration block in the Amazon Basin area of northeast Peru. According to the terms of the contract, Loon Peru undertook, in the initial phase of the contract, to acquire, process and interpret 390 kilometers of 2D seismic survey, reprocess existing seismic data on an additional 2,000 kilometers and prepare the corresponding technical studies.

CEPSA Peru S.A., a wholly-owned subsidiary of CEPSA, entered into a farm-in agreement with Loon Peru in October, 2007 under which CEPSA Peru agreed to disproportionately fund the initial phase of the contract and (if it remains a partner) the second exploration period work commitment in order to earn an 80% working interest in Block 127, leaving Loon Peru with a 20% working interest. A 2D seismic program, to be shot by CEPSA Peru pursuant to that agreement, is expected to commence in the first half of 2009.

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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