Morumbi Oil and Gas Inc.
TSX VENTURE : MOC

September 28, 2010 17:19 ET

Morumbi Successfully Fracture Stimulates Its New 12-33 Vertical Well on Its McKinley, Alberta Light Oil Prospect

- Morumbi successful completes 24 tonne gelled water frac at new McKinley 12-33 vertical well

- Establishes excellent contact with offset Cadotte D Pool reservoir; an estimated 400,000 to 500,000 barrels remains in place

- Company to tie-in well to the 4-33 well site to initiate production operations on the well and with the view to establishing flow rates with a long term production test

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2010) - Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") announced that it has successfully fracture stimulated its new 12-33 vertical well at its McKinley project in Alberta. Morumbi completed a successful 24 tonne gelled water frac which established excellent communication with the prolific Cadotte D Pool reservoir to its west.

Despite delays relating to wet weather conditions that hindered the movement of equipment and services the Company was able to dramatically improve the flow rate of the well with the recent frac and thereby establish good contact with the Cadotte D Pool as planned. Swabbing operations over the last several days resulted in flow rates of 4 to 5 m3 of fluid per hour. These flow rates are equivalent to 600 to 750 bfpd but are not reflective of actual pumping flow rates, which would likely be less than half these levels.

The strong inflow rates have given Morumbi the confidence to move ahead to pipeline the well to its 4-33 well site. Difficulty in moving fluids produced given the wet conditions in northwestern Alberta has made continued swabbing operations impractical. Rather than having operations suspended further by wet weather conditions and paying for idle equipment and services at the 12-33 well site Morumbi has decided to take advantage of recent weather improvements to move out the equipment and move forward to tie in the well.

Although the Company is unable to establish at this time reliable flow rates for the well given limited swabbing operations management is confident that the well merits tie given good contact with the Cadotte D Pool. In addition, the well is in an excellent structural position to drain a significant portion of the remaining reserves estimated still to be recovered from the pool. Prior to establishing the production potential of the well management will need to produce the nearby water which migrated to the 12-33 location when the original 12-33 horizontal well bore collapsed.

The location of the new 12-33 vertical well is also approximately 500 meters to the northeast of the prolific offset 7-32 well which produced almost 500,000 barrels of light oil before being suspended. Morumbi believes that the 12-33 well is in a good structural position to drain the oil reservoir up dip from the 7-32 well as the Company believes this area is largely undrained by the existing well stock in the Cadotte D Pool.

Morumbi has made available on its website (www.morumbi.ca) the updated geological maps and an investor presentation outlining the prospects for our McKinley light oil property. The updated geological mapping reviews the results of the recently drilled new 12-33 vertical well and suggests that the Company is in a good position to access the prolific 37º API Mckinley Cadotte D pool from the most structurally high location penetrating the pool to date.

Once the Company is able to bring the well on production through a pipeline to the 4-33 well site management will be able to more accurately determine the full production potential of the well. Morumbi has already been granted surface approval for a 700 meter pipeline and is in the process of applying for the necessary licenses and contracting of services to complete the tie of the well as soon as possible.

Morumbi is pleased with the results of the 24 tonne gelled water frac in establishing excellent contact with the prolific Cadotte D Pool and is looking forward to establishing a production base upon which we can further grow the Company.

About Morumbi

Morumbi Oil & Gas Inc. is a newly traded 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 www.morumbi.ca.

Disclaimer

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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