Loon Awards Contract for Brunei 3D Seismic

Loon Energy Inc. reported that its wholly-owned subsidiary Loon Brunei Limited and Nations Petroleum Brunei Limited have awarded the contract for the acquisition of a planned 350 square kilometre 3D seismic survey on Block L in Brunei Darusallam.

A total of four bids were initially received and the survey was awarded to El Nusa Geosains and Zainal al Daud after review of both the technical and financial aspects of the bids. The survey, costing a total of approximately US$15.3 million, is expected to commence in Q1 of 2008.

Block L is 550,000 acres (2,253 km2) in size covering much of eastern onshore Brunei and also containing an offshore component. There has been some historic production on Block L, however, no exploration or development activities have been undertaken in this area in approximately 20 years. The giant Champion and Seria oil fields are both located within 25 kilometres of Block L and a new gas discovery has been announced by Brunei Shell Petroleum at Bubut less than 1 kilometre from Block L.

Loon is the operator and holds a 90% working interest in Block L. QAF Brunei Sdn Bhd, a Brunei company, owns 10%. Nations Brunei, a wholly-owned subsidiary of Nations Petroleum Company Ltd., has an option to acquire a 50% interest in Block L from Loon (Loon news - April 24, 2007) under which Nations will pay and manage the cost of the 3D survey.