Contact Information: Contact Information: Company Contact Naeem Tyab Mogul Energy 206-357-4220 naeem@mogulenergy.com http://www.mogulenergy.com
Mogul Energy International, Inc. Enters Into an Extension Agreement With Excelaron LLC
| Source: Summit Financial Printing LLC
SEATTLE, WA--(Marketwire - October 7, 2009) - On September 9, 2009, Mogul Energy
International, Inc. (OTCBB : MGUY ) (FRANKFURT : BKX ) (the "Registrant")
entered into an Extension Agreement (the "Extension Agreement") with
Excelaron LLC ("Excelaron"), a California limited liability company. The
Extension Agreement extended the time for the Registrant to make the
capital contribution that was the subject of the Agreement dated February
11, 2009 (the "Original Agreement"), between the Registrant and
Excelaron. Under the Original Agreement, the Registrant is entitled to
obtain a 40% Members Percentage Interest in Excelaron in exchange for a
capital contribution of $2,300,000 (the "Capital Contribution"), to be used
by Excelaron primarily for oil and gas exploration activities. The
Extension Agreement sets a new schedule for payment of the Capital
Contribution.
On or about September 21, 2009, the Registrant executed a Letter of Intent
("LOI") with Vesta Capital Corp. ("Vesta"), a Canadian capital pool company
that is a reporting issuer in British Columbia, Alberta, and Ontario,
Canada; United Hydrocarbon Corporation ("UHC"), a Canadian company; and
Barisan Energy Limited ("Barisan"), an Australian company (collectively the
"Parties"). Pursuant to the LOI, the Parties agreed to negotiate and use
reasonable efforts to conclude a definitive agreement (the "Definitive
Agreement") on or before October 15, 2009, regarding a proposed business
combination (the "Proposed Transaction"). Under the Proposed Transaction,
if completed, Vesta would acquire an aggregate 65% interest (the
"Interests") in Excelaron, through the acquisition of the Registrant's
right to earn a 40% interest in Excelaron, the acquisition of UHC's 25%
interest in Excelaron, and the acquisition of Barisan's 4% interest in
Excelaron. In exchange for the Interests, Vesta would issue 65 million
shares as follows: 38.5 million to the Registrant; 22.5 million to the
shareholders of UHC on a pro rata basis; and 4 million to Barisan. Upon
completion of the Proposed Transaction, Vesta would own 44% of Excelaron
directly and 21% through its wholly-owned subsidiary UHC. The Proposed
Transaction is subject to a number of conditions and regulatory approvals,
including but not limited to the negotiation of a definitive agreement,
completion of due diligence, receipt of regulatory approvals, including TSX
approval, satisfaction of corporate governance requirements, and completion
of a private financing of UHC. There can be no assurance that the Proposed
Transaction will be completed.
Mogul Energy International, Inc. has accepted the resignation of the Vice
President of Development and Exploration, Dr. Arthur Halleran and Director,
Mr. Ernie Pratt, effective October 5, 2009. Dr. Halleran and Mr. Pratt
have chosen to pursue other interests.
Information concerning Mogul Energy International:
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 business combination described in this release. Inherent in
the Company's business plan is a belief that Mogul Energy can successfully
explore oil and gas properties in Egypt and Canada, and that the Company
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
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.