Mooncor Begins Recompletion Operations at Canadian Shale Gas Play

Mooncor has provided an update on planned operations on Mooncor's recently acquired 56,960 acre 100% working interest Western Canadian shale gas play.

Further to the announcement of December 22, 2008, Mooncor has secured the required regulatory and industry approvals to commence a workover of the suspended wellbore that it has acquired. The access road to Mooncor's lease has been cleared. Management currently anticipates having the service rig on location by mid-week. The completion program (Mooncor 100%) to be undertaken will be to perforate, fracture stimulate and test a shale gas zone that is present in the suspended wellbore. The estimated cost of the completion program is $815,000. Testing of the shale zone will aid Mooncor and its technical advisors in determining aspects of reservoir quality and deliverability.

The results of this pilot program will be interpreted, evaluated and compared with available results from other industry players working the same shale system. Results from the pilot test in conjunction with the petrophysical and reservoir study are expected to be complete by mid March and will enable Mooncor to assess business and operational options to exploit its recently acquired land holdings.

This property, acquired at Crown land sales through brokers, occurs as an almost contiguous land block on trend with a well-known, high-profile, shale gas play. The property occurs in an area that has an extensive system of gas gathering and processing facilities with services and infrastructure readily available for third party use and significant for development of Mooncor's assets in the area. Mooncor entered this play through in-house development of a previously acquired technical report and the strategic application of a large, land-banking program.