Loon Energy Inc. (CDNX:LEY) Announces a Change in Corporate Direction to Accelerate the Growth in Value for Shareholders
CALGARY, ALBERTA--The board of directors of Loon has authorized
the Company to solicit offers to purchase certain minor properties
of Loon located at Strachan, Epping and Carvel. These properties
produce approximately 33 boepd net to Loon. Subsequent to the
sale of these properties, Loon would have two primary producing
properties: Grand Forks, Alberta (30 bbls/d of medium gravity oil)
and Silverdale, Saskatchewan (55 bbls/d of heavy oil).
At Silverdale, Loon now has three producing heavy oil wells. The
discovery well, drilled in January of this year, was followed up
with two development wells in July/August. Loon's working
interest is 50%. The Silverdale property appears to contain
multiple additional development locations, two of which are
planned to be drilled during the fourth quarter.
Loon's current production is approximately 118 boepd. The Company
has 14.5 million common shares issued and outstanding. Current
net debt is approximately $1,000,000 and current cash flow is
approximately $63,000 per month ($750,000 or $0.05 per share
annualized) after G&A and interest.
The Company announces that Thomas H. Field has resigned as
President/CEO but will have a continuing role in the Company as a
director. Mr. Field led the Company through its growth of the
last few years. He will assist the Company as a part-time
consultant, on the disposition of properties and with ongoing
operations.
Loon also announces that it is pursuing negotiations with a
private, foreign-based group that has potential exploration and
development opportunities in a number of eastern European
countries.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Loon Energy Inc.
Norman W. Holton
Chairman
(403) 264-8877 |
