Loon Issues Options

CALGARY, ALBERTA (TSX VENTURE: LEY) granted options to purchase an aggregate of 1,760,000 common shares on December 5, 2007 to eight insiders of Loon. The exercise price is $0.61 per share and the expiry date of the options is December 6, 2012.

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

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 neither approves nor disapproves of the information contained herein.

Contacts: Loon Energy Inc. (Calgary) Norman W. Holton Executive Chairman [phone] Email: [e-mail] Loon Energy Inc. (Dubai) Timothy M. Elliott President and Chief Executive Officer [phone] Email: [e-mail] Loon Energy Inc. (Dubai) Jock M. Graham Executive Vice President [phone] Email: [e-mail] Website: www.loon-energy.com Brisco Capital Partners Corp. (Calgary) Gordon Aldcorn Investor Relations [phone] Email: [e-mail]