Mooncor updates shale gas and oil operations and announces first production revenue

    MOO:TSX Venture Exchange

    CALGARY, July 2 /CNW/ - Darrell Brown, Chief Executive Officer of Mooncor
Oil & Gas Corp. ("Mooncor") is pleased to report on Mooncor's shale gas and
oil operations activities.

    New Shale Gas Plays

    Mooncor is currently negotiating land positions and farmins for two new
shale gas plays. Mooncor recently purchased a regional research package
documenting results from activity in this first shale gas play. This research
was generated by a Calgary-based geologist, and documents the drilling results
over the last several years targeting conventional oil and gas. All of these
wells were drilled through the shales for deeper targets. Mooncor has engaged
a negotiating land man and is advancing its land acquisition strategy. Upon
successful completion of the negotiations, Mooncor would anticipate drilling 4
test wells into these shales.
    Mooncor's second emerging shale gas play has been moving forward. Mooncor
has signed a non-binding letter of intent to farm into the shale lands of a
junior explorer. The transaction is subject to due diligence and the execution
of a formal joint venture agreement. A land man has been engaged to negotiate
a significant land position in this shale gas play on behalf of Mooncor,
further enhancing Mooncor's land position in this shale gas opportunity.

    Shale Gas & Heavy Oil

    White Hill Lakes, Saskatchewan: A completion program for Mooncor's 5 test
shale gas wells is still under review. A 30 kilometer 2-D seismic program is
planned for the 3rd quarter of 2008 to assess the heavy oil potential of the
property. After a review of the 2-D seismic data, a 6th test well will be
drilled, targeting both the Mannville potential for heavy oil and the Colorado
shales. Core samples will be taken from the shales and will be independently
tested and analyzed. The completion program for the test wells will be
initiated after this review.


    Lloydminster, Alberta: Mooncor's first heavy oil well is producing at a
stabilized rate of 25 BOPD. A workover of the second well should be completed
this week. This second well will be turned on at 25 BOPD. It is anticipated
that before year end flow rates for both wells will be higher than these
initial rates. Mooncor received its first revenue cheque for May oil shipments
from the Lloydminster production. Negotiations are underway on several other
opportunities at Lloydminster.

    Woodbend, Alberta: The approval process to drill a light oil bypassed
Blairmore reservoir is moving forward. Mooncor plans spudding the first well
in the 4th quarter of 2008. If the first well is successful Mooncor
anticipates drilling up to 6 additional wells.

    Bashaw, Alberta: Mooncor and its partner are finalizing plans to spud a
new Nisku well at Bashaw. The anticipated spud date is the third week of July.
Successful completion of this well would potentially lead to another 3
locations as interpreted from 3-D seismic.

    Lonestar, Alberta: Mooncor was successful in obtaining the oil sands
rights for two sections at Lonestar at the May 14, 2008 land sale. Mooncor has
drilled a standing well at Lonestar. Oil shows were documented in two zones
with gas shows in two other zones. Mooncor plans to commence completion
operations for this well in the winter only access Peace River Arch area in
late 2008. A second well would be drilled in the 1st quarter of 2009.

    About Mooncor

    Mooncor Oil & Gas Corp. is a junior oil and gas exploration and
development company, with unconventional shale gas, light oil and heavy oil
projects in Saskatchewan and Alberta. Mooncor is focusing on both its shale
gas opportunities and its oil operations.

    Cautionary Statements

    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. 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

For further information:

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)

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