Third Quarter Active for Loon

CALGARY, ALBERTA (TSX VENTURE: LEY) announces that it has filed its unaudited financial statements and its Management Discussion and Analysis ("MD&A") on SEDAR (www.sedar.com) for the period ended September 30, 2007. Loon continued to progress in the quarter with notable events including the execution of two major contracts during the period and the closing of a major financing:

- Peru - the Exploration License Contract for Block 127 was signed in Lima on August 21st;

- Syria - the Production Sharing Contract for Block 9 was executed in Damascus on September 20th; and

- Financial - Loon closed a private placement in early July which added $25 million to the treasury and increased the percentage ownership of our major shareholder to approximately 39%;

Subsequent to the end of the quarter activity has continued apace and since September 30th Loon has:

- Brunei - entered into a settlement agreement which resolves all disputes related to Block L;

- Peru - formalized a farm-out arrangement with CEPSA under which it will fund the first exploration phase and, if it wishes to complete earning, the second exploration phase of work commitments on Block 127;

- Colombia - finalized a farm-out arrangement and commenced drilling of an exploration well; and

- appointed two new directors and one new officer.

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) 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 neither approves nor disapproves of the information contained herein.

Contacts: Loon Energy Inc. - Calgary, Canada Norman W. Holton Executive Chairman [phone] Email: [e-mail] Loon Energy Inc. - Dubai, UAE Timothy M. Elliott President and Chief Executive Officer [phone] Email: [e-mail] Loon Energy Inc. - Dubei, UAE 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]