November 5, 2007
TSX-V:LEY

NEWS RELEASE

Colombia Drilling Starts

Calgary, Alberta, Canada, November 5, 2007 – Loon Energy Inc. (“Loon” or the “Company”) (TSX-V:LEY) announces the spud of the Kristie #1 well in Colombia. The well, spud earlier today, will evaluate the oil potential of a large combination structural-stratigraphic prospect in the Revancha Sur area of the ~ 62,500 acre Abanico Block. Geological and geophysical information used to develop the prospect suggest potential for recoverable reserves in the order of 65 million barrels if the well and subsequent development is successful. The total depth of the well is expected to be more than 2,000 metres or approximately 6,300 feet.

The Kristie #1 well, along with a second exploratory well, will be paid for through a farmout arrangement with Prospero Hydrocarbons Inc. (“Prospero”). Under the terms of the farmout agreement, Loon has agreed to assign a 25% interest in the Kristie prospect in consideration for Prospero funding 50% of the well costs. In addition Loon has agreed to assign to Prospero a 25% interest in a second prospect to be drilled in the Abanico Block in consideration for Prospero funding 50% of the cost and expense of drilling a well to test that prospect. Loon will retain a 24% interest in each of the prospects and a 49% interest in the rest of the Abanico Block excluding the interest of the operator (Kappa Resources Colombia Ltd.) in the existing Abanico Oilfield. In addition, Prospero shall have the right to participate in any future wells drilled in the block with a 25% working interest, in which case Loon shall drop from 49% to 24%.

The consortium has identified a number of prospects to target subsequent to the Kristie #1 well and to this end is in the process of permitting and surveying several surface locations in order to keep its options open in this regard.

Loon is an international oil and gas exploration and production company having direct interests in Brunei, Syria, Colombia, Perú, Tunisia and Slovenia and exposure to a major exploration and development program in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary (Canada), Dubai (United Arab Emirates) and Bandar Seri Begawan (Brunei Darussalam). For further information, please refer to the Loon website (www.loon-energy.com) or contact the following:

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 has neither approved nor disapproved of the information contained herein.