Loon Energy Inc.
TSX VENTURE : LEY

Loon Energy Inc.

June 01, 2006 11:20 ET

Syria Awards 3,900 Square Mile Block to Loon

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) - Loon Energy Inc. ("Loon") (TSX VENTURE:LEY) announces that the Ministry of Petroleum and Mineral Resources (the "Ministry") of the Syrian Arab Republic has awarded Loon the right to negotiate a production sharing contract with respect to the 2.5 million acre (3,900 square mile) Block 9.

Block 9 is located in northwest Syria on the northern edge of the hydrocarbon-rich Homs sub-basin. The Homs sub-basin contains some of Syria's significant light oil and gas fields including the Cherrife Da, Ash Shaer Da, Palmyra and Al Rasem Field complexes. The block is under-explored and contains only six wells with the most recent having been drilled more than 10 years ago.

Loon will enter into negotiations with Ministry to finalize the details of the Block 9 production sharing contract with the first discussions expected to take place in late June.

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
    (403) 264-8877
    or
    Loon Energy Inc. (Dubai)
    Timothy M. Elliott
    +971-4-339-5212
    or
    Loon Energy Inc. (Dubai)
    Jock M. Graham
    +971-4-339-5212