Loon et al Case Colombia Well- Testing to Follow

CALGARY, ALBERTA (TSX VENTURE: LEY) announces that the Delta-1 well in Colombia has reached total depth of 8,183 feet (2,494 metres) and preparations are underway to log the well. The well, spud on December 9th, is located within a 60,817 hectare block of lands covered by the Buganviles Association Contract (the "Contract") between Holywell Resources S.A. ("Holywell") and Ecopetrol, the national oil company of Colombia. The well was drilled slightly deeper than the initial planned total depth of approximately 8,000 feet. Total well costs are expected to be in the order of $3.9 million US with Loon's share being slightly over $1 million US.

The Delta-1 was directionally drilled to intersect the target zone approximately 250 metres from the surface location of the Gualanday-3 oil discovery drilled in 1957. The Gualanday well had initial test rates of 100-393 barrels of 37 degrees API oil per day and produced approximately 300,000 barrels of oil during six years of sporadic production from a gross reservoir section of more than 170 feet within the Caballos Formation. Delta-1 encountered the primary limestone objective in the Caballos Formation approximately 254 feet lower than in the Gualanday well. The zone, with a gross thickness of approximately 156 feet, was intermittently oil-stained throughout with the best oil shows and higher gas content in the top 80 feet of the zone. The well will be tested following logging and once casing has been set.

In the event that the well is productive, fifty percent of the lands or approximately 75,000 acres will be retained for a period of two years. In the event that the well is not cased for commercial production, the lands will expire. Under the terms of an agreement with Kappa Energy Colombia Limited S.A. ("Kappa"), Loon participated through Kappa in an arrangement between Kappa and Holywell and is paying 26.4% of the costs of the drilling and completion of the Delta-1 well to earn a 20% working interest in the well and any of the retained lands.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and exposure to a major exploration and development program in Pakistan through its shareholding in Jura Energy Corporation. 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.

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

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