Loon Energy Inc.

Loon Energy Inc.

December 06, 2007 18:21 ET

Loon Energy Inc.: Colombia- Kristie #1 Abandoned

CALGARY, ALBERTA--(Marketwire - Dec. 6, 2007) - Loon Energy Inc. ("Loon" or the "Company") (TSX VENTURE:LEY) advises that the Kristie #1 exploratory well in Colombia has been drilled to a total depth of 2,252 metres (7,390 feet) and abandoned without testing after logging. The well was drilled to evaluate the oil potential of a large combination structural-stratigraphic prospect in the Revancha Sur area of the approximately 62,500 acre Abanico Block. The well was paid for through a farmout arrangement with Prospero Hydrocarbons Inc. ("Prospero"). Under the terms of the farmout agreement, Loon agreed to assign a 25% interest in the Kristie prospect in consideration for Prospero funding 50% of the well costs. In addition Loon has agreed to assign to Prospero a 25% interest in a second prospect to be drilled in the Abanico Block in consideration for Prospero funding 50% of the cost and expense of drilling a well to test that prospect. Loon will retain a 24% interest in each of the prospects and a 49% interest in the rest of the Abanico Block excluding the interest of the operator (Kappa Resources Colombia Ltd.) in the existing Abanico Oilfield. In addition, Prospero shall have the right to participate in any future wells drilled in the block with a 25% working interest, in which case Loon shall drop from 49% to 24%. Drilling of the second well under the farmout agreement is expected to occur during the first quarter of 2008.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and exposure to a major exploration and development program in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary (Canada), Dubai (United Arab Emirates) and Bandar Seri Begawan (Brunei Darussalam).

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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