Loon and Petro Vista Terminate Discussions

CALGARY, ALBERTA, Apr 07 (MARKET WIRE) --
Loon Energy Corporation (TSX VENTURE: LNE) ("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.

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 Corporation
Norman W. Holton
President and CEO
(403) 264-8877
Email: nholton@loonenergy.com

Loon Energy Corporation
Timothy M. Elliott
Chairman
+971 (4) 3395212
Email: telliott@loonenergy.com

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