Mogul Energy Spuds Stafford Well #2

Mogul Energy International, Inc. on Monday announced the spudding of the Stafford Well #2 on the La Ward NE Field area in Jackson County, Texas. The drilling rig moved on location over the past weekend and initiated drilling operations late Sunday afternoon.

This offset well is located 600 feet west of the Stafford Well #1, which was initially completed in March of this year. The Stafford Well #2 will be drilled to a total depth of 7,000 feet so as to further delineate the producing intervals seen in Frio formation. It is expected that the new well will be higher on structure and will have several producing intervals with greater producing rates than the Stafford Well #1.

Stafford Well #2 has 100% participation of all working interest owners that participated in Mogul's initial well in the field. Mogul has a 15% working interest in both wells #1 and #2 and is the operator for both.

President and CEO Tim Turner said, "We are very excited about the prospects for our second well in our drilling program as we strive to carry out our mandate to grow value for our shareholders and partners."