February 11, 2008
TSX-V:LEY

NEWS RELEASE

Loon Awards Contract for Brunei 3D Seismic

Calgary, Alberta, Canada, February 11, 2008 – Loon Energy Inc. (“Loon” or the “Company”) (TSX-V:LEY) announces that its wholly-owned subsidiary Loon Brunei Limited (“Loon Brunei”) and Nations Petroleum Brunei Limited (“Nations Brunei”) 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. (www.nationspetroleum.com), 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.

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.