November 4, 2010 / 3:37 PM / 7 years ago

Loon Energy's shares leap on drilling success in Colombia

Nov 4 (Reuters) - Canadian exploration company Loon Energy Corp LNE.V said results at one of its wells on a Colombian property encouraged further drilling, and its shares more than tripled in value.

The well’s operator, Canadian oil and gas firm Pacific Rubiales PRE.TO, now plans to drill additional wells at the property during the last quarter of 2010 and the first quarter of 2011, Loon Energy said in a statement.

Loon Energy, which also has projects in Peru, said evaluations at the Visure-1X well in the Buganviles block, indicated a total net pay of liquid hydrocarbons of 114 feet, ranging from 24.5-45.5 feet of net pay and 16-26 percent average porosity.

Pacific Rubiales is currently drawing up test plans for the well and intends to complete the well as a producer, said Loon Energy, which has a 10 percent working interest in the Visure prospect and the Buganviles block.

Petrodorado Energy Ltd PDQ.V holds a 59.5 percent in the Visure prospect, having bought the stake in October after dropping plans to buy Loon Energy. Petrodorado has a 10 percent working interest in the Buganviles block.

Shares of Calgary, Alberta-based Loon Energy touched 19.5 Canadian cents, their highest since December 2008, before paring some gains to trade at 15.5 Canadian cents on Thursday on the Toronto Venture Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Maju Samuel)

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