HOUSTON , Dec. 27, 2011 — Mogul Energy International, Inc. (“Mogul”) (OTCBB: MGUY.PK – News) today announced the commencement of drilling operations on its third well this year with the spudding of the Werland Heirs #1 well in the Mud Flats Field, Aransas County , Texas. This well is located approximately 10 miles northwest of Aransas Pass, Texas in the D.C. Barrett League, A-321. Drilling is expected to take approximately 21 days to reach the well’s target depth of 9,600 feet in the Frio Formation.

The Werland Heirs Well #1 has received 100% participation of all working interest owners. The leases currently have the following working interest owners, all of whom are participating in the well: Global Oil and Gas Resources, Inc.; GM and Partners, Corp.; RDR Capital Investors, LLC; Merek Contract Services, Inc.; and Aura Oil Holdings Ltd., a related party owned by a director of the Company. Mogul has a 25% carried working interest in the well and is the operator of record.

“This is a noteworthy achievement in our South Texas development program,” Mogul President and CEO Tim Turner said. “With the start of drilling operations in another of our many prospects, this is an important step towards confirming the commercialization of these assets.”

Turner continued, “There is an abundance of production data from numerous wells that have been drilled in the Mud Flats Field. Mogul anticipates testing several of the same productive zones in our initial well that were seen in those nearby wells. Putting all of this data together, Mogul has a high degree of confidence that this is going to be a good well.”