Morumbi Oil and Gas Inc.

February 16, 2010 10:09 ET

Morumbi Oil & Gas Receives Government Surface Lease Approvals for McKinley Alberta Light Oil Prospect

- Morumbi to Spud New 12-33 Well Shortly

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2010) - Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to provide investors with a progress report of drilling and exploration activities on its newly acquired McKinley Prospect in northwestern Alberta.

Morumbi anticipates that with the recent receipt of a crown surface lease and approval of its well license for a new vertical well at 12-33-65-22W5M, drilling operations will begin within the next week once the surface lease construction activities have been completed. The well should take approximately 7 days to drill and the Company should have initial testing results by early March 2010. Given the strong performance of offset oil wells in the McKinley Cadotte Pool, the Company is anticipating that the new well should make a strong contribution to future production and cash flow if successful.

Offsetting wells in the Cadotte pool have produced over 1.5 billion barrels of 37 degree API oil, averaging 300,000 barrels per well.

Morumbi has also recently concluded the successful re-completion of the original 12-33 horizontal well. The operation involved abandoning the horizontal portion of the well bore that was believed to have collapsed. This operation was necessary in order to enable Morumbi to apply to drill a new vertical well at 12-33 which we anticipate will be more optimally placed to capture the remaining reserves in the McKinley light oil pool. This view is supported by horizontal logs that penetrated the Cadotte Reservoir at the proposed New 12-33 vertical location.

The re-completion also will enable Morumbi to use the vertical portion of the original 12-33 well, which has a surface location at 4-33, as a potential water disposal well and for pressure maintenance purposes in order to receive GPP on the new 12-33 well if successful.

Morumbi Oil & Gas Inc. is a newly traded public company with attractive near-term development and production assets. The Company commenced trading on the TSX Venture Exchange on December 22, 2009 after completing a reverse take over with Blackburn Ventures Corp. (see press release dated December 23, 2009). In conjunction with the transaction a non brokered private placement of $1,487,000 was completed at $0.30 per unit (comprised of one common share and one warrant exercisable into one common share at $0.40 per share for a period of one year) resulting in total shares outstanding of 12,458,330.

About Morumbi

Morumbi Oil & Gas Inc. is a newly traded public company with attractive near-term development and production assets based 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


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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