Morumbi Oil and Gas Inc.

March 25, 2011 16:52 ET

Morumbi Oil & Gas Inc. Closes Acquisition

CALGARY, ALBERTA--(Marketwire - March 25, 2011) - Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to announce that it has acquired all of the issued and outstanding share capital of Rockwell Exploration S.A., a private company incorporated and existing in the Bahamas ("Rockwell"). In connection with the acquisition of Rockwell, Morumbi has paid cash consideration of US $582,000 in settlement of certain debts of Rockwell and has also issued an aggregate of 4,000,000 common shares of Morumbi to Rockwell's ten shareholders. Rockwell's business to date has been focused on sourcing and developing exploration opportunities in Papua New Guinea ("PNG") with a focus on oil and gas exploration opportunities.

As a part of the acquisition, Morumbi has also entered into a consulting agreement with Mr. Lindsay Semple providing for Mr. Semple's services on an exclusive basis to build an exploration platform for Morumbi in PNG in order to take advantage of the opportunities management believes to be present there. Morumbi has also entered into a consulting agreement with Mr. Philip Rali a PNG national and an expert in Melanesian customs, who has worked as a team with Mr. Semple for the past 13 years focusing on the acquisition and development of oil and gas properties. Of the 4,000,000 Morumbi common shares issued in connection with the acquisition, 1,800,000 are being held in escrow and will be released in three equal tranches over a period of 18 months.

Tom Loch the President of Morumbi, "We view this as an opportunity to participate in one of the most attractive under explored resource areas in the world today. PNG is the home to some of the world's great mines including Porgera, OK Tedi, and Lihir and the recently announced 35 million ounce equivalent gold/copper/silver resource at Wafi-Golpu by Harmony Gold Mining Limited. Further, Exxon Mobil Corp.'s $15 billion liquefied natural gas project currently under construction in the highlands is set to commercialize extensive stranded natural gas reserves. PNG is a stable Commonwealth country with attractive fiscal resource policies."

About Morumbi

Morumbi Oil & Gas Inc. is a public company with attractive near-term light oil exploitation opportunities 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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