SOURCE: Mogul Energy International, Inc.

Mogul Energy International, Inc.

June 21, 2011 09:55 ET

Mogul Energy Announces the Staking of the Stafford Well #2 Location and the Initial Flow Rates for Stafford Well #1, Jackson County, Texas

HOUSTON, TX--(Marketwire - Jun 21, 2011) - Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) today announced it has staked the proposed location for the drilling of the Stafford Well #2 in Jackson County, Texas and will immediately file the necessary drilling permit application with the Texas Railroad Commission.

The follow-up well to the successful Stafford Well #1 will be drilled west of the currently producing well. The Stafford Well #1, drilled to 7,400 feet, is currently producing from a shallower zone with an average of 30 barrels of oil per day. Further production testing will continue over the coming weeks, which will eventually help stabilize the production volumes and tubing pressures to a level producing rate. Several shallower zones were also tested and identified as productive and will be produced in a sequential manner. Results received from the first well have identified several potential offset locations to the north and west of the #1 well.

As operator of the Stafford Well #2, Mogul, with 15% working interest in the prospect, has sought and received approval from a majority of the current working interest owners to the proposed drilling of the Stafford Well #2. It is expected that the new well location will be higher on structure and will have a greater oil production rate than the Stafford Well #1. The new well site is expected to spud in mid to late July, will be drilled to a total depth of approximately 7,000 feet and is expected to take approximately 10 days to drill and case. Logging and any additional testing will occur immediately after drilling is complete. Mogul anticipates testing several prospective zones within the Frio formation, as evidenced in the Stafford #1 well and several adjoining wells that have produced from these intervals.

President and CEO Tim Turner said, "We have thoroughly reviewed and analyzed the subsurface geology and are pleased with the prospective drilling opportunities that are presented in this prospect. Our staff, along with our consulting team, has done a great job and we are looking forward to drilling future wells in this prospect."

About Mogul Energy International, Inc.:

Mogul Energy International, Inc. ("Mogul") is an oil and gas exploration company headquartered in Houston, Texas. The common shares of Mogul are quoted on the OTC Bulletin Board (OTCBB) system under the symbol "MGUY," and the Frankfurt Stock Exchange ("FSE") under the symbol 'BKX.' Further information concerning Mogul can be found in the company's filings with the U.S. Securities and Exchange Commission (http://www.sec.gov). For more information about Mogul Energy International, Inc., go to www.mogulenergy.com.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the securities laws, which are based on current expectations and beliefs, as well as on a number of assumptions concerning future events made with information that is currently available. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Inherent in Mogul Energy International, Inc.'s ("Mogul") business plan is a belief that Mogul can successfully explore oil and gas properties in the United States and that Mogul can participate in the development of those properties. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of Mogul's control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to Mogul Energy's filings with the U.S. Securities and Exchange Commission. Mogul assumes no obligation to update or supplement such forward-looking statements other than as required by law.

Contact Information

  • For more information, contact:

    Tim Turner
    President and CEO
    Mogul Energy International, Inc.
    2500 Wilcrest Dr., Ste. 405
    Houston, TX 77042
    (713) 784-2446