Morumbi Oil and Gas Inc.
TSX VENTURE : MOC

March 11, 2010 12:16 ET

Morumbi Oil & Gas Cases New 12-33 Well on Its McKinley Alberta Light Oil Prospect

CALGARY, ALBERTA--(Marketwire - March 11, 2010) - Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to announce that is has successfully drilled and cased its recent 102-12- 33-65-22W5M well to a total depth of 1460 meters, which is its first well on the McKinley Prospect in northwestern Alberta. Despite some drilling delays and warm weather conditions, the latter of which have resulted in an earlier than anticipated Spring Break-up, the Company was able to complete drilling operations in early March.

The well encountered the targeted Cadotte reservoir approximately 2 meters structurally higher than the highest offset wells drilled to date in the McKinley Cadotte light oil pool. Based on logs, the well encountered a little over 9 meters (30 feet) of Cadotte sand with porosity in the range of 13% to 23% with the best porosity (average of about 20%) present in the top 3.5 meters of the Cadotte sands penetrated by the well. Oil and gas shows were experienced in the drilling but full completion and testing of the well has been delayed as a result of the early break-up which closed the Suncor operated Simonette service road used to access the Mckinley Property.

The new 12-33 vertical well was drilled approximately 8.0 meters east of the original 12-33 horizontal well bore which encountered generally excellent porosity in excess of 20% and good oil staining. Morumbi had planned to drill the new 12-33 well approximately 10 meters to the west of the original horizontal well bore but surface conditions including a river embankment resulted in the well being placed 17 meters east of this original location. The original horizontal directional surveys suggest the well is positioned in the lower sand penetrated in the new 12-33 vertical well, approximately 7 meters lower than the top of the Cadotte formation penetrated.

Morumbi plans to complete the well as soon as surface conditions permit after spring break-up. The Company is in the process of designing the completion program including a fracture stimulation of the well bore with the view to fracing into more of the main reservoir sands encountered in the original horizontal well bore. Morumbi's assessment is that the vertical well is on the eastern edge of the McKinley Cadotte oil pool which is why we believe that we encountered tighter Cadotte sands in the lower portion of the zone (reservoir quality sand would be in the 18% porosity range) despite the fact that these same sands situated 8 meters to the west have better indicated porosity on geological sample logs in the plus 20% range.

Morumbi anticipates that it will be able to maximize productivity of the well by fracing the well with the view to improving the permeability of the Cadotte sand encountered in the lower portion of new 12-33 well and with the view to accessing the higher porosity encountered in the nearby horizontal well bore which is situated only 8 meters to the west. Further work is also being undertaken to also determine if the upper 3.5 meters of the well represents the Cadotte gas cap or if the gas cap has been depleted sufficiently to perf and produce oil from the 20% porosity reservoir quality sands encountered at the top of the Cadotte reservoir in the 12-33 well. It is important to note that the 12-33 well is structurally higher than offset wells including the closest well which is located approximately 500 meters west of the recently drilled 12-33 well (7-32 well has produced close to 500,000 barrels of light oil).

Morumbi looks forward to completing the well after break-up and will update shareholders of the anticipated timing of its completion operations once it has a better sense of when access roads will re-open and permit resumption of operations.

Morumbi has already received government surface lease approvals for the approximately 700 meter pipeline required to tie-in the new 12-33 well, upon successful completion operations, to the existing 4-33 well site which will enable the Morumbi to utilize an existing pipeline connection to a nearby CNRL operated oil processing facility. Morumbi may also opt to install its own processing facility at its 4-33 well site should the productivity of the 12-33 well warrant this additional expenditure. These plans would include converting the vertical portion of the original horizontal well (surface location at 4-33) into a water disposal well and for pressure maintenance purposes.

About Morumbi

Morumbi Oil & Gas Inc. is a newly traded public company with attractive near-term light oil exploitation opportunities in northwest Alberta. The Company trades on the TSX Venture Exchange under the symbol "MOC". For more information about Morumbi and the Company's McKinley Property and plans visit our website at www.morumbi.ca.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes","may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for developing assets) and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, commodity prices, risks inherent in the oil & gas industry, financing risks, labour risks, title disputes, regulatory risks, currency fluctuations, competition, unexpected decline rates in wells, changes in taxation or royalty regimes and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward- looking information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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