Mogul Energy Successfully Completes the Drilling of the Stafford Well #2, Jackson County, Texas

HOUSTON, TX--(Marketwire - Sep 26, 2011) - Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) announces today a second successful well in the La Ward NE Field area in Jackson County, Texas. The well, located approximately 10 miles south of Ganado and was drilled to a total depth of 7,010 feet.

Mogul successfully completed the drilling of the Stafford Well #2 on Friday, September 23^rd and has been running formation tests over the weekend. The Stafford Well #2 was drilled due west of the Stafford Well #1 and has similar oil and gas shows as the first well and is structurally higher as well.

Initial open-hole logging indicates the potential of 8 productive zones from the Frio formation with cumulative thickness totaling 49 feet of pay, with both oil and gas shows. The well has been cased to the bottom of the hole, efforts to perforate individual zones are forthcoming this week and an announcement about production volumes will be made when initial testing of the well has been completed.

President and CEO Tim Turner said, "The Frio sand intervals are thicker in the Stafford #2 well and it has some additional pay zones that are not present in the first well. These features have good implications for other prospective locations in the area and warrant further development of this field."

Mogul operates the Stafford wells and has a 15.00 percent working interest in the project. Other interest owners in the discovery are Fossil Oil Company, LLC with 33.33 percent, C. H. Squyres Family, LLC with 33.33 percent, Aura Oil Holdings Ltd. with 8.33 percent, Global Oil & Gas Resources, Inc. with 5.00 percent, Dolomiti Partners, LLC with 2.50 percent and Indian Lane Assoc., LLC with 2.50 percent.

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.