Loon Energy Inc.
TSX VENTURE : LEY

Loon Energy Inc.

August 21, 2007 22:11 ET

Loon Signs Exploration License Contract for Block 127 in Peru

CALGARY, ALBERTA--(Marketwire - Aug. 21, 2007) - Loon Energy Inc. ("Loon") (TSX VENTURE:LEY) announces that a wholly-owned subsidiary, Loon Peru Limited ("Loon Peru"), has formally signed the Exploration License Contract (the "Contract") with PERUPETRO S.A. ("PERUPETRO") granting Loon Peru the right to explore for and produce hydrocarbons from Block 127 in the Maranon Basin area of northeast Peru.

Block 127 is approximately 2.4 million acres (approximately 9,675 square kilometres) in size and is located in the Amazon Basin area of northeastern Peru.

Under the terms of the agreement, Loon Peru has committed to acquire, process and interpret 390 kilometres of 2D seismic, reprocess 2,000 kilometres of 2D seismic and prepare certain technical studies or perform an equivalent amount of work, as defined in the Contract, as its minimum program during the first two year exploration period.

Loon had previously announced on May 4th, 2006 that it had been awarded Block 127 (formerly Block B-04) subject to the finalization of the Exploration License Contract between Loon Peru and PERUPETRO.

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).

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)
    Norman W. Holton
    Executive Chairman
    (403) 264-8877
    (403) 264-8861 (FAX)
    Email: nholton@loon-energy.com
    or
    Loon Energy Inc. (Dubai, UAE)
    Timothy M. Elliott
    President and Chief Executive Officer
    +971-4-339-5212
    Email: telliott@loon-energy.com
    or
    Loon Energy Inc. (Dubai, UAE)
    Jock M. Graham
    Executive Vice President
    +971-4-339-5212
    +971-4-339-5174 (FAX)
    Email: jgraham@loon-energy.com
    Website: www.loon-energy.com
    or
    Brisco Capital Partners Corp. (Calgary)
    Gordon Aldcorn
    Investor Relations
    (403) 262-9888
    Email: galdcorn@shaw.ca