Petro Vista Energy Corporation announces that it has been unable to conclude an agreement with Loon Energy Corporation on their proposed business combination. Consequently, the Board of Petro Vista and Loon Energy have determined that it is in the best interests of their shareholders to terminate the Letter of Intent between them announced on February 23, 2009.
Read B. Taylor, President and CEO of Petro Vista, commented, "We have been working closely with Loon Energy over the past five weeks to address outstanding issues; however, we have been unable to find a mutually acceptable solution on some of the key points in the final agreement. We believe it is in Petro Vista's best interest to terminate the proposed merger and continue to pursue acquisition opportunities where they make sense and complement Petro Vista's overall growth strategy".
Petro Vista continues to focus its efforts on establishing near-term production in the Morichito Block, Colombia, by leveraging value from strategic farm-outs where Petro Vista is being carried on a US$8.8M exploration program that will pay 100% of the costs of drilling and completing exploration wells #1N and #3. This drill program, currently underway, will be completed in early June 2009.