I love the concept, but the ability costs may need a little tweaking. Compare the first ability with Greed or Erebos, God of the Dead and you'll see what I mean. The second ability might be okay, though.

Also, I love the flavor text.

Both of these abilities probably need to cost 2 mana rather than 1, and indeed the black one should almost certainly cost 2 life rather than 1 as well. That's assuming this is a rare; on an uncommon (as suggested by the cost and P/T) they'd probably need to cost 3 mana. Even on an uncommon I can't see why you'd make this 0/1 rather than 2/2.

I do like the idea of combining red activated looting with red activated damage, though.

Mm. Even that second ability is uber-strong. Play with some multilands, and you can start slinging around a nigh-infinite amount of 'better than Blaze' by round 3. Who cares what cards you're drawing and discarding at that point? Even if your opponent finds a way to kill this after you untap once, you get three loots and an instant speed Arc Lightning out of the deal.