Loon Energy Corporation: Second Well Spuds on Buganviles Block

Loon Energy Corporation (TSX VENTURE:LNE) ("Loon") announces the spud of the
Tuqueque-1X well.


The Tuqueque-1X well has a planned total depth of 7,600 feet and is targeting
the Tetuan and Caballos formations of Cretaceous age. The Buganviles Association
Contract land is located in the Upper Magdalena Valley area of central Colombia.
The well was spud on November 4, 2010 and is currently drilling at a depth of
276 feet. The well, which is operated by a wholly-owned subsidiary of Pacific
Rubiales Energy Corp., is expected to reach total depth in approximately 50
days.


The Tuqueque prospect is located approximately 15 kilometres to the northwest of
the Visure-1X discovery well announced last week.


Loon has a 10% privately held interest in the Tuqueque-1X well, the Visure-1X
well and in the Buganviles Association Contract. The drilling costs of Loon in
the Tuqueque-1X well are being paid by Petrodorado South America S.A.
("Petrodorado S.A.") pursuant to a farmout agreement. Loon had previously
announced the farmout agreement with Petrodorado S.A. under which Petrodorado
S.A. will pay Loon's 20% share of the AFE cost to drill and complete two wells
on the Buganviles Block in Colombia to earn 75% (net 15%) of the interest of
Loon in the Buganviles Association Contract (the "Farmout"). The Farmout
provided for a reduction in the earning interest of Petrodorado S.A. from net
15% to net 10% upon payment by Loon of 10% of the completion costs of both
wells, if the proposed acquisition of Loon by Petrodorado Energy Ltd.
("Petrodorado"), first announced on July 19, 2010, did not close. It was
disclosed on October 25, 2010 that the proposed acquisition would not close and
on November 03, 2010 Loon provided notice to Petrodorado S.A. that it would pay
its entire 10% share of completion costs for both the Visure-1X and the
Tuqueque-1X wells and would then retain a 10% privately held interest in the
Visure-1X well, the Tuqueque-1X well and in the Buganviles Association Contract.



Cautionary Note Regarding Forward-Looking Statements 

This news release contains forward-looking statements relating to the drilling
of the Visure-1X well, the Tuqueque-1X well, the Farmout and the transaction
with Petrodorado announced July 19, 2010, and other related matters, some of
which are not historical facts. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can he no assurance that the
plans, intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual performance
and results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. These assumptions, risks and uncertainties include,
among other things: the risk that the wells may encounter drilling and/or
completion problems which could lead to greater cost and, potentially, a failure
to reach total depth or to evaluate the prospects being drilled, the state of
the economy in general and capital markets in particular, investor interest in
the business and future prospects of Loon.


The forward-looking statements contained in this press release are made as of
the date of this press release. Except as required by law, Loon disclaims any
intention and assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by applicable securities law. Additionally, Loon undertakes
no obligation to comment on the expectations of, or statements made, by third
parties in respect of the matters discussed above.