Contact Information: Contact Information: Company Contact Naeem Tyab Mogul Energy 206-357-4220 naeem@mogulenergy.com http://www.mogulenergy.com
Mogul Energy Enters Into Definitive Agreement for Qualifying Transaction
| Source: Mogul Energy International Inc.
SEATTLE, WA--(Marketwire - January 27, 2010) - Mogul Energy International, Inc. ("Mogul")
(OTCBB : MGUY ), today announced that it has entered into a definitive
qualifying transaction agreement (the "Definitive Agreement") with each of
United Hydrocarbon Corporation ("UHC"), Excelaron LLC ("Excelaron"), Vesta
Capital Corp. ("Vesta") and others in connection with a proposed
"Qualifying Transaction" (within the meaning of the policies of the TSX
Venture Exchange (the ("TSXV")). The Definitive Agreement provides for,
among other things, the acquisition of a direct 40% membership interest in
Excelaron (the "Acquisition of the Mogul Interest") by Vesta in
consideration for which Mogul will receive 38,500,000 shares of Vesta.
After giving effect to the Acquisition of the Mogul Interest, and subject
to the closing of the Qualified Transaction, Mogul expects to hold between
approximately 32% and 41% interest in Vesta, depending on the number of
shares ultimately issued by Vesta as part of the Qualifying Transaction.
The Acquisition of the Mogul Interest is to be effected in connection with
an indirect concurrent financing of between $9,000,000 and $4,000,000
Canadian Dollars (the "Financing'). The consummation of the Definitive
Agreement, including the Acquisition of the Mogul Interest, is subject to
the satisfaction by the parties of a number of conditions including, but
not limited to the above mentioned Financing and required regulatory
approvals.
About Mogul
Mogul Energy is an oil and gas exploration company with headquarters in
Seattle, Washington.
The common shares of Mogul Energy 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 Energy
can be found in the Company's filings with the U.S. Securities and Exchange
Commission (http://www.sec.gov).
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, including, but
not limited to, the Company's ability to negotiate, enter into, perform and
consummate the definitive agreement described in this release. 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
Energy'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 Energy International,
Inc. assumes no obligation to update or supplement such forward-looking
statements other than as required by law.