Purpose:

Mooncor specializes in the exploration and development of unconventional gas projects, most particularly in the Colorado shales in western Canada.

People:

A management and technical team with 75+ years of collective experience in oil and gas is headed by Ron Bourgeois, CEO; Darrell Brown, COO; and Chairman Richard Cohen.

Projects:

Mooncor’s assets consist of rights to earn working interests in Mooncor’s five separate properties consisting of 263,511 gross acres (126,625 net acres) of petroleum and natural gas Crown leases in Alberta and Saskatchewan.  The company currently has five projects underway on which Mooncor it has drilled 9 wells to date.  The five projects include: Woodbend, Crossfield and Lonestar in Alberta, and Whitehill Lakes and Foam Lake in Saskatchewan.

Woodbend is an oil opportunity targetting a fifty foot bypassed Blairmore oil pay zone that was identified from a well drilled in 1974. The corporation plans to drill it's first well at Woodbend in the late Q4, 2007.

Crossfield is a five section multi-zone play. The first well was spudded, drilled and cased in December, 2006 and testing is ongoing. The second well was drilled in June, 2007.  The well was frac'd in Q3, 2007. Testing is ongoing on both wells.  18 more are planned.

Whitehill Lakes is Mooncor's longer term reserve play. The Corporation has earned into 77.6 sections of biogenic gas properties in Saskatchewan. The first five test wells were drilled in December, 2006. These wells were logged, cased and core samples were taken and sent out to Terratech labs in Salt Lake city. A twenty well development program will be initiated in 2007, subject to core test results from these five wells.

Lonestar is an exploration play targeting Gilwood gas potential. The company has identified a large structural feature from the two 2D seismic lines that cover the company’s 4 section land block. The first well has been logged, cased and cemented. The company plans to go back to the property after spring breakup.

Foam Lake represents another a long-term resource play for Mooncor. The company has earned a 47.5% working interest in 207,000 gross acres of prospective land. The first test well was drilled and cased in March, 2007. 360 miles of geochemical survey over 80% of the land and 3 seismic lines were acquired, and two anomaly types identified. It is anticipated a second test well will be drilled in October 2007.

Potential:

Mooncor presents a great opportunity for balanced investment in Natural Gas and Oil prospects through:

·         a mix of prospect risk profiles

·         long reserve life targeted (10-30 years)

·         Horseshoe Canyon CBM Shallow Wells

·         Cretaceous and Devonian targets within highly productive corridors

·         shale gas and heavy oil prospects.

Plans:

Due to record oil prices, Mooncor has changed its short term focus from shale and unconventional gas to concentrate on and to prioritize the company’s two oil projects at Woodbend and at Lonestar and its new oil-related farm in.  The Company now views its unconventional natural gas projects as longer term assets and will accelerate the exploitation of these gas properties as natural gas prices improve.  The first project reflecting this change of focus is a production test/seismic review oil farm in commitment in central Alberta that the company recently entered into.

Work on the new oil farm in project will commence immediately.  The Company’s Woodbend light oil project and its oil and gas play at Lonestar will be prioritized.  An operations update on these three properties and the longer term gas strategy will be released shortly.

Mooncor’s management is confident, in the longer term, that its shale and unconventional gas projects will be highly economical.  The Company’s change of strategy to exploit its oil properties generates immediate oil production and cash flow instead of creating expenditures on natural gas exploration.  This cash flow will support an enhanced natural gas exploration program at the appropriate time.