Contact Information: Contact Information: Company Contact Naeem Tyab Mogul Energy 206-357-4220 naeem@mogulenergy.com http://www.mogulenergy.com
Mogul Energy International, Inc. Signs Agreement on EWA Concession
Mogul Energy Sells Interest in EWA Concession and Begins New Financing Round
| Source: Mogul Energy International, Inc.
SEATTLE, WA--(Marketwire - April 29, 2008) - Mogul Energy International, Inc. (OTCBB : MGUY )
(FRANKFURT : BKX ) (the "Company") announced that, on April 24, 2008, it
closed an Agreement of Purchase and Sale (the "Agreement") with Egypt Oil
Holdings Ltd. ("Egypt Oil"), Sea Dragon Energy Inc. ("Sea Dragon"), and
Dover Investments Limited ("Dover"), and a related Share Exchange
Agreement. Under the Agreement, Mogul agrees to sell its 20% working
interest in the East Wadi Araba (EWA) Concession in the Gulf of Suez, Egypt
in exchange for satisfaction of its outstanding liabilities (the "Debt
Obligation") relating to the Company's drill program on the EWA Concession,
and a cash payment of US$100,000 and equity participation in Sea Dragon in
the amount of 4 million (4,000,000) shares. The Company estimates that the
Debt Obligation to be covered by the Agreement will be at least US$650,000.
The Company will be seeking shareholder approval of the Agreement.
The Company also announced today that it intends to make two new offerings
("Offerings") of its common stock to investors in Canada: one offering on a
flow-through basis, pursuant to the Income Tax Act (Canada), and another
non-flow-through offering. The Company expects to raise approximately $1.9
million through the private placements. The flow-through is priced at
$0.25 per share and the non-flow-through offering is priced at $0.20 per
share. The proceeds of the flow-through will be used to fund exploration
on Mogul's freehold oil and gas exploration leases in Saskatchewan, Canada.
Completion of the private placements is expected to occur prior to May 31,
2008.
The shares ("Shares") to be issued under the Offerings have not been
registered under the United States Securities Act of 1933, as amended (the
"Securities Act"), and may not be offered or sold directly or indirectly
within the United States or to or for the account or benefit of U.S.
Persons (as such term is defined in Regulation S, as promulgated under the
Securities Act) absent registration or an applicable exemption from
registration. The Shares will be sold only to persons who are not U.S.
Persons and who otherwise satisfy the requirements of the applicable
securities laws of the jurisdiction of their residency. As such, the
Company believes that the Offerings are exempt from registration under
Regulation S, as promulgated under the Securities Act.
This notice is not an offer to sell or a solicitation of an offer to buy
such Shares and is issued pursuant to Rule 135c of the Securities Act.
Information concerning Mogul Energy International:
Mogul Energy is an oil and gas exploration company with headquarters in
Seattle, Washington. Mogul Energy has acquired a portfolio of oil and gas
leases in South East Saskatchewan, Canada.
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.