Slovenia

March 19, 2004
Loon Energy Inc., Calgary, heads a group that plans to exploit gas pays below 2,000 m in Petisovci-Dolina field in eastern Slovenia.

By OGJ editors

HOUSTON, Mar. 19 -- Loon Energy Inc., Calgary, heads a group that plans to exploit gas pays below 2,000 m in Petisovci-Dolina field in eastern Slovenia.

WPN Resources Ltd. retained UK consulting engineers Troy-Ikoda Ltd. to review the deeper reservoirs and by Apr. 25 demonstrate financial capacity to participate in the project.

Deep wells drilled in the 1980s have produced 9 bcf from certain of the deeper reservoirs, but only a few wells are still producing. Some of the multiple sand reservoirs have not been stimulated or produced.

New work is to consist of 4 fracs on existing deep wells or other equivalent work as agreed. WPN would acquire a 48.75% interest in the deeper gas reservoirs.

Petisovsci and Dolina fields lie on a large anticline, two thirds of which is in Hungary. Lovaszi, the Hungarian field, has produced 50 million bbl of oil and 230 bcf of gas, while Petisovsci-Dolina field has produced 5.6 million bbl and 34.3 bcf.

Loon believes that many more hydrocarbons can be recovered from the Slovenian side. Its partners in the venture are Nemmoco Slovenia Corp. and Auldstone Investments Ltd.

Slovenia plans to join the European Union in May 2004.