Loon Energy Inc.
TSX VENTURE : LEY

Loon Energy Inc.

September 07, 2007 14:34 ET

Loon Provides Update on Operations in Tunisia

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2007) - Loon Energy Inc. ("Loon") (TSX VENTURE:LEY) announces that production casing will be run in the Bhayra Rigo #1 well on the Jorf permit to a total depth of approximately 1,400 metres. Careful log evaluation by the Corporation, its partners and independent log experts indicates the presence of potential areas of interest in a thick Upper Permian dolomitized and fractured reef. At this time, Loon and its partners are unable to determine whether hydrocarbons are or are not present in the potential areas of interest as a sudden circulation loss occurred when the reef was first encountered at 1,126 metres. Circulation of drilling fluids was never re-established and drilling samples were not recovered over an approximate 300 metre interval. A core was cut in the lower portion of the zone confirming the presence of fractured and porous dolomite. Testing for the presence of hydrocarbons would normally be done by conducting open-hole straddle tests over selected intervals. However, due to local safety regulations and other technical reasons, this cannot be done and testing of the well will be conducted at a later date through casing perforations. The operator will source all the necessary testing equipment and Loon will provide an update on the actual timing of testing operations.

The Jorf permit, located onshore south-central Tunisia, encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block (within 40 kilometres from the Bharya Rigo # 1 well) and connect to the La Skhira oil terminal in the Gulf of Gabes.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and an indirect interest in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary, Alberta, Canada, Dubai, United Arab Emirates and Bandar Seri Begawan, Brunei Darussalam. For further information, please refer to the Loon website (www.loon-energy.com) or 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 neither approves nor disapproves of the information contained herein.

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