Loon Energy Inc.
TSX VENTURE : LEY

Loon Energy Inc.

October 04, 2005 14:31 ET

Loon Energy Inc.: Update on Aleli Deep Test in Colombia

CALGARY, ALBERTA--(CCNMatthews - Oct. 4, 2005) - Loon Energy Inc. (TSX VENTURE:LEY) ("Loon") announces that the Aleli-D1 well in Colombia has reached a depth of 3,932 feet (1,198 metres) and intermediate 9 5/8" casing is being run to that depth. Drilling, to a planned total depth of 7,800 feet (2,377 metres), is expected to resume in a few days and total depth is expected to be reached in late October. The spud of the Aleli-D1 well, the second well to be drilled by Loon in Colombia, was announced on September 21, 2005.

The well is drilling a structure located approximately nine miles west of the Braspetro/Nexen Guando Field. Guando is believed to contain roughly 120 MMBO of recoverable reserves (source: Braspetro website). Seismic ties to the Guando Field and the mapping of surface geology around the margins of the basin suggest a continuation of the Guadalupe reservoir section over the seismically-defined Aleli-D1 location.

The drilling of Aleli-D1 will fulfil, in part, Loon's commitment to expend a minimum of US$6 million to earn 49% interest of the interest of Kappa Resources Colombia Ltd. ("Kappa") in the Abanico Association Contract. Drilling operations are operated by Kappa and earning is subject to the approval of Ecopetrol, the Colombian national oil company. The Contract area covers more than 200,000 acres (greater than 300 square miles) the Upper Magdalena Valley, a hydrocarbon-prone area of Colombia.

Forward Looking Statements - 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)
    Norm Holton
    Chairman & CEO
    (403) 264-8877
    (403) 264-8861 (FAX)
    Email: loon@loon-energy.com
    Website: www.loon-energy.com
    or
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    +971-4-339-5212
    or
    Loon Energy Inc. (Dubai)
    Jock M. Graham
    +971-4-339-5212