November 15, 2004     NEWS RELEASE   Loon Starts Production and Sale of Gas in Slovenia   Calgary, Alberta, Canada, November 15, 2004 - Loon Energy Inc. ("Loon") (TSX.V-LEY) is pleased to announce that the Pt-123 well, which was drilled during July and August of this year, commenced commercial production on the 9th of November 2004. The gas is being delivered through existing field lines to a power plant owned and operated by a subsidiary of Nafta Lendava d.o.o., the state-owned company that is one of Loon's partners in Slovenia.   The well is producing at an initial rate of 350 Mcfd. Production will slowly increase to an ultimate target rate of more than 500 Mcfd during the next 3 months. The producing gas zone tested dry gas at a stabilized rate of 600 Mcfd (100 boepd) upon completion. The well will be produced for a period of 3 months at which time the well will be shut-in for a brief period to conduct a pressure buildup test to enable a more precise determination of reserves. Current estimates of potential gas reserves in the pool tapped by the Pt-123 well, based on mapping, range from 2 Bcf to 4 Bcf for this particular zone.   The company is evaluating the potential of either re-entering old wells elsewhere in the field to develop this zone and/or the drilling of new wells. The Pt-123 is the first well drilled by Loon in Slovenia. Loon paid 40% of the costs of the well and will receive 38% of net revenue prior to payout and 30% thereafter.   Company Contact: Norman W. Holton, Chairman & CEO 800, 700-4th Avenue S.W. Calgary, Alberta, T2P 3J4 CANADA Bus: (403) 264-8877    Fax: (403) 264-8861 e-mail: loon@loon-energy.com Some of the statements contained in this release are 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.