Mogul Energy International, Inc. Enters into an Extension Agreement with Excelaron LLC.
Exhibit 99.1
Mogul
Energy International, Inc. Enters into an Extension Agreement with Excelaron
LLC.
Seattle, WA October 7,
2009--On
September 9, 2009, Mogul Energy International, Inc. (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, Xxxxx 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, Xx. Xxxxxx Xxxxxxxx and Director, Xx. Xxxxx
Xxxxx,
effective October 5, 2009. Xx. Xxxxxxxx and Xx. Xxxxx 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 (xxxx://xxx.xxx.xxx).
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.
Contact
Information:
Company
Contact
Xxxxx
Xxxx
Mogul
Energy
000-000-0000
xxxxx@xxxxxxxxxxx.xxx
xxxx://xxx.xxxxxxxxxxx.xxx