Mooncor negotiates extension of convertible debentures

MOO: TSX Venture Exchange

CALGARY, April 13 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased to announce that it has negotiated an extension of its two convertible debentures. The debentures matured on March 28, 2010 and each had $760,718.79 outstanding inclusive of interest.

Pursuant to the extension agreements (i) Mooncor will immediately repay each debenture holder $100,000 as a partial repayment of the outstanding balance of each debenture, (ii) following the execution of the extension agreements Mooncor will hold 80% all amounts raised from the exercise of options and warrants, and 80% of the net proceeds from any financings, if any, in trust with Garfinkle, Biderman LLP, under a direction to only use such funds to repay the debenture holders, (iii) Mooncor will pay a $10,000 work fee to each debenture holder, (iv) the debentures will become convertible into units ("Units") of Mooncor at $0.225 per Unit, (v) Mooncor will issue 500,000 warrants ("Warrants") to each debenture holder, and (vi) if the balance of the debentures are not repaid by Mooncor, or converted by the debenture holders by June 11, 2010, Mooncor shall be provided a further six months (to December 11, 2010) to repay the then outstanding balance of each debenture, on the condition that a minimum of $250,000 of principal is still outstanding on each debenture.

Each Unit shall consist of one common share and one-half of one warrant, with each whole warrant entitling the holder thereof to purchase one common share of Mooncor at $0.225 per share until December 11, 2010.

Each Warrant entitles the holder thereof to purchase one common share of Mooncor at $0.225 per share until December 11, 2010, with 250,000 being exercisable upon execution of the extension agreements and 250,000 being exercisable in the event the debentures are not repaid, or converted, in full by June 11, 2010.

The extensions are subject to the approval of the TSX Venture Exchange.

Mooncor will provide an update shortly on its operations in southwest Ontario and on the process undertaken by Mooncor and managed by its advisor, Macquarie Tristone (the acquisitions and divestitures business of Macquarie Capital Markets Canada Ltd.) with respect to a potential transaction for Mooncor's interests in its Muskwa/Duvernay shale gas play at Hamburg, Alberta.

Business of Mooncor Oil & Gas Corp.

Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development company. Mooncor is focusing on its shale gas opportunities with a current emphasis on its high impact proven Muskwa/Duvernay shale gas play at Hamburg, Alberta as well as structuring a spinoff of its southwest Ontario assets into a new entity.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Mooncor Oil and Gas Corp.

For further information: For further information: Richard Cohen, Vice-President, (Corporate Development), Mooncor Oil & Gas Corp., Tel: (905) 882-4422, rcohen@mooncor.com; Jason Monaco, First Canadian Capital Corp., Tel: (416) 742-5600, jmonaco@firstcanadiancapital.com

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Mooncor Oil and Gas Corp.

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