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April 7, 2009 NEWS RELEASE Loon and Petro Vista Terminate Discussions Calgary, Alberta, Canada, April 7, 2009 – Loon Energy Corporation (“Loon”) announces that it has been unable to conclude an agreement with Petro Vista Energy Corporation on their proposed business combination and that the Letter of Intent between them announced on February 23, 2009 has been terminated. Norman W. Holton, President and CEO of Loon commented: “Loon is in a strong financial position with approximately $3 million in cash, no debt and minimal financial commitments. The company, which remains focused on Colombia and Peru, will continue to seek out and evaluate both corporate and other opportunities to increase shareholder value.” Loon owns a 20% interest in the Buganviles Association Contract area in the Upper Magdalena Valley area of central Colombia which includes a well producing approximately 50 barrels of oil per day. In Peru, the Company is carried through the first US$10.75 million of costs on a seismic program to be conducted on Block 127, one of the largest exploration licenses in the Amazon Basin area of northeast Peru with an area of approximately 2.4 million acres. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the either Petrol Vista or Loon. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Neither Petro Vista nor Loon assume the obligation to update any forward-looking statement, except as required by applicable law. Loon Energy Corporation Timothy M. Elliott |
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