2009-08-19-2007-12-01-2007-12-01

Acquired 80% WI in exploration agreement with right to explore Block 127 in Maranon Basin area of 9,675 sq. km.

Spain's Cepsa subsidiary Cepsa Peru SA has acquired an 80% working interest in an exploration agreement in northeastern Peru with Loon Peru Ltd., a subsidiary of Calgary-based Loon Energy Inc., (Toronto Venture: LEY) for an undisclosed amount. The agreement includes the right to explore in Block 127 in the Maranon Basin area, measuring 9,675 square kilometers. Cepsa Peru will be operator and acquire an 80% working interest in the license, which involves a work commitment that includes an initial phase of 24 months and four subsequent periods until completing an exploration term of seven years.