MOO: TSX Venture Exchange

CALGARY, Feb. 24 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") (TSXV:MOO) is pleased to provide a corporate update and release of additional information related to pressure survey work completed on February 14, 2011 conducted on its 06-34 pilot well in Hamburg.

Pilot Well Pressure Survey Results

Mooncor conducted additional work on the 06-34 pilot well in Hamburg to determine the static bottom hole pressure. The work is in addition to well testing undertaken in February 2009 and provides confirmation of reservoir pressure data obtained previously. Pressure survey results confirm reservoir pressures of approximately 40 MPa. The Muskwa formation is about 60% overpressured with a 15.9 KPa/m (0.70 psi/ft) reservoir pressure gradient.

The pressure survey work also showed a gas/hydrocarbon liquid interface at 1284 m above the Muskwa perforation interval. The height of the hydrocarbon liquid column is viewed as significant given the relatively small 5T frac that was placed into the formation during pilot evaluation.

Liquids Content
75 bbls/MMcf including approximately 34% by volume of 560 API condensate

The liquids content of the Muskwa shale in the Hamburg area as measured by Mooncor is approximately 75 bbls/MMcf including approximately 34% by volume of 560 API condensate. These numbers are comparable to results released by other industry groups.

The presence of a 1284 m hydrocarbon liquid column in the pilot well is a positive indicator of the deliverability and liquids rich potential for this shale system. The vertical pilot well was originally perforated over a 3 m interval, frac'd with 5T of proppant and was then flow tested as a gas well. Mooncor recovered and sold 2.9 m3 (18.2 bbls) of condensate from the original flow test in February 2009. Based on the hydrocarbon liquid level observed, management is of the opinion that the well will perform better
with appropriately sized production tubulars, as the inflow of liquids caused the well to load up, inhibiting further gas/fluid inflow in the 2009 flow test.

Industry Activity

A recent press release from a leader in unconventional gas assessment announced the availability of a study of the Muskwa shales in the Hamburg area including Mooncor lands. The study has been prepared in advance of three upcoming land sales in the Hamburg area scheduled for March 9 and 23, 2011 and April 6, 2011. Lands posted into these three sales are in excess of 150,000 acres. Mooncor currently has 100% working interest in 103,680 acres in this immediate area.

Indicative Well Economics

Mooncor management has prepared internal per well economics for exploitation of the liquids rich Muskwa shale in the Hamburg area. The economics reflect the 5% royalty on the first 36 months of production from the shale as announced by the Alberta Provincial government on May 27, 2010.

Management internally generated economic modeling show very robust rates of return. Capital costs are estimated to be $8.28 MM based on industry sourced estimates of capital (drill, complete & tie-in costs). The calculated contribution of the liquids is approximately 60% of the revenue based on forecast current gas and gas liquids pricing.

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 negotiations for a joint venture partner 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:

Richard Cohen
Vice-President (Corporate Development)
Mooncor Oil & Gas Corp.
Tel: (905) 882-4422
  Jason Monaco
First Canadian Capital Corp.
Tel: (416) 742-5600

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Mooncor Oil and Gas Corp.

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