Mogul Energy International provides drilling update- Continue Progress Cited on East Wadi Araba Concession located in Gulf of Suez, Egypt

Seattle, WA August 21, 2007--Mogul Energy International, Inc. (OTCBB: MGUY) announced today that it has received notification from project operator Dover Investments Ltd. (Dover) that progress is continuing to be made on the drilling of the EWA-4X exploration well. The well is being drilled from an onshore location and deviated to test the offshore Raha and a large oil target in the Nubian Sandstone, forming the significant reservoir in several major oilfields in the Gulf of Suez.

The 13 3/8” casing has been successfully set and cemented in the well. The rig operator overcame some technical problems with the rig pumps, and on last update, Dover informed Mogul Energy that the well was drilling at 2,500 feet drilled depth. Dover anticipates that the well will reach target depth, which is expected to be below 7,100 ft drilled depth (or 4,180’ vertical depth) in about 21 days time. Further updates will be released as additional drilling milestones are attained.

Information concerning Mogul Energy International:

Mogul Energy is an oil and gas exploration company with headquarters in Seattle, Washington, and an exploration office in Cairo, Egypt. Mogul Energy intends to explore its portfolio of oil and gas properties in the Gulf of Suez, Egypt and South East Saskatchewan, Canada. Mogul currently has a 20% working interest in the EWA Concession which is located north of Rally Energy's Issaran Field, northwest of BP's October Field and west of the Warda Field in the Gulf of Suez. The Gulf of Suez is regarded as one of the most prolific oil producing regions in the world, as evidenced from the presence of 5 major fields - October, Belayim, Morgan, July and Ramadan – which have collectively yielded billions of barrels of oil.

A Letter of Intent dated July 30, 2007, contemplates a business combination with Sea Dragon Energy, Inc., a private Canadian corporation, that would, upon closing, increase Mogul Energy's interest in the EWA Concession to 60%. Mogul Energy and its partners and currently drilling the EWA 4X exploratory well on the EWA Concession. The EWA 4X well is being drilled from an onshore surface location to test the offshore EWA 4X prospect, which is the first of five identified structures that have been evaluated by Mogul Energy and its partners in the EWA Concession. There are six additional prospects in the EWA Concession that are being evaluated for future exploration.

Mogul also has a 100% working interest in oil and gas leases on approximately 9,300 acres of land in South East Saskatchewan, Canada.

Mogul Energy is a Delaware corporation with its principal place of business in Seattle, Washington The common shares of Mogul Energy 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 Energy can be found in the Company’s filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).

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