Mogul Energy Announces the Staking of the Stafford Well #2 Location and the Initial Flow Rates for Stafford Well #1, Jackson County, Texas

HOUSTON, TX--(Marketwire - Jun 21, 2011) - Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) today announced it has staked the proposed location for the drilling of the Stafford Well #2 in Jackson County, Texas and will immediately file the necessary drilling permit application with the Texas Railroad Commission.

The follow-up well to the successful Stafford Well #1 will be drilled west of the currently producing well. The Stafford Well #1, drilled to 7,400 feet, is currently producing from a shallower zone with an average of 30 barrels of oil per day. Further production testing will continue over the coming weeks, which will eventually help stabilize the production volumes and tubing pressures to a level producing rate. Several shallower zones were also tested and identified as productive and will be produced in a sequential manner. Results received from the first well have identified several potential offset locations to the north and west of the #1 well.

As operator of the Stafford Well #2, Mogul, with 15% working interest in the prospect, has sought and received approval from a majority of the current working interest owners to the proposed drilling of the Stafford Well #2. It is expected that the new well location will be higher on structure and will have a greater oil production rate than the Stafford Well #1. The new well site is expected to spud in mid to late July, will be drilled to a total depth of approximately 7,000 feet and is expected to take approximately 10 days to drill and case. Logging and any additional testing will occur immediately after drilling is complete. Mogul anticipates testing several prospective zones within the Frio formation, as evidenced in the Stafford #1 well and several adjoining wells that have produced from these intervals.

President and CEO Tim Turner said, "We have thoroughly reviewed and analyzed the subsurface geology and are pleased with the prospective drilling opportunities that are presented in this prospect. Our staff, along with our consulting team, has done a great job and we are looking forward to drilling future wells in this prospect."

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:

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