Mogul Energy Announces Lease Acquisition and Joint Operating Agreement for Drilling the Company's First Texas Prospect

   Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) recently acquired the oil and gas rights on more than two dozen leases in Jackson County, Texas. The acreage will provide the first of two potential locations in Mogul's South Texas drilling program announced earlier this year.

In addition, Mogul entered into a Participation Agreement and signed a Joint Operating Agreement (JOA) with Fossil Oil Company, LLC and the C. H. Squyres Family, LLC to add adjoining acreage already leased and to participate equally in the drilling of the prospect. The additional acreage would add three to five prospective well locations. The combined leases total approximately 480 acres.

Mogul will be the operator of record for this prospect with the first well to be permitted and drilled by mid-February, 2011. "Our plan is to drill the initial well to a total depth of 7,400 feet and test multiple zones within the Frio formation that have been identified as productive or having the potential of being productive based upon the well data in the area," says Tim Turner, Mogul's Executive Vice President.

"Mogul has made a commitment to pursue multiple drilling opportunities in the Texas Gulf Coast region. This is the first of several prospects we have planned in the area over the next 18 months," he added.

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 Canada and 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.

For more information, contact: Naeem Tyab Mogul Energy International, Inc. Tel: [phone] [e-mail]