Loon Energy Inc.

Loon Energy Inc.

March 24, 2005 12:22 ET

Loon Updates Information on Slovenia D-14 Well


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LOON ENERGY INC.

TSX VENTURE SYMBOL: LEY

MARCH 24, 2005 - 12:22 ET

Loon Updates Information on Slovenia D-14 Well

CALGARY, ALBERTA--(CCNMatthews - March 24, 2005) - Loon Energy Inc.
("Loon") (TSX VENTURE:LEY) advises that the D-14 well in Slovenia
continues to undergo clean-up and is flowing minor amounts of gas while
unloading both the carrier fluids and kill fluids employed during the
fracture stimulation process. Kill fluids were used after the fracture
stimulation of two of the three zones fractured in the well to bring the
well under control. Analysis of production behavior and pressures
suggests that gas flow may be inhibited by formation damage which may
have occurred during the fracture stimulation process.

The well is operated by Grove Energy Limited (TSX-V-GRV) which has a
48.75% interest in the reservoirs which were stimulated in the D-14
well. Private companies hold 40.75% and Loon holds a 10.5% interest. The
partners in the D-14 well will meet in the next few weeks to evaluate
potential operations to improve well performance.

The major focus for Loon is its project in Colombia (news release of
February 15, 2005). Loon will drill to evaluate a minimum of three
separate prospects during the second and third quarter of 2005. Loon has
committed to expend a minimum of $US6 million to earn a 49% interest in
more than 200,000 acres (more than 312 square miles) in a hydrocarbon
prone area of the Upper Magdalena basin.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Loon Energy Inc.
    Norm Holton
    (403) 264-8875
    or
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    +971-4-339-5212
    The TSX Venture Exchange neither approves nor disapproves of the
    information contained herein.