Peru Gives Loon Exploration Rights in the Maranon Basin Area

Loon Peru has formally signed the Exploration License Contract with PERUPETRO S.A. 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 kilometers) 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 kilometers of 2D seismic, reprocess 2,000 kilometers 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.