Petro Vista Energy and Loon Energy Corporation have entered into a Letter of Intent with respect to a proposed business combination which, if completed, would result in Petro Vista acquiring Loon in an all stock transaction. With the acquisition, Petro Vista will become a South American focused, well capitalized junior oil and gas producer and explorer led by an experienced and successful management team.

Norman W. Holton, President and CEO of Loon, commented, “The business combination with Petro Vista allows Loon shareholders to participate in a more substantial entity with near-term development opportunities, a strong management team and improved access to capital.”

Read B. Taylor, President and CEO of Petro Vista, commented, “This transaction represents an excellent opportunity to obtain both cash for our 2009 exploitation-exploration drilling program and a carried interest in a strategic 2.4 million acre exploration asset with high impact potential in northeast Perú,. Both the Colombia and Perú assets are complementary to our existing production and growth portfolio.”

Tags: Loon Energy Inc., Petro Vista Energy Corp.