MENA Hydrocarbons Inc.

MENA Hydrocarbons Inc.

January 20, 2012 06:00 ET

MENA Hydrocarbons Announces Process to Sell US Assets

CALGARY, ALBERTA--(Marketwire - Jan. 20, 2012) - MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE:MNH) announced that further to its news release of October 11, 2011, the Company has engaged Moyes & Co. to assist in the disposition of its US assets in Montana and Utah. An evaluation of these assets was prepared by the Colorado based independent qualified reserves evaluators Gustavson Associates effective September 1, 2011. Highlights of the evaluation include:

  • Net present value (discounted 10% before tax - forecast prices) of US$38.1 million (US$0.17 per MENA share) attributed to its NW Montana proven + probable (2P) reserves.
  • Net present value (discounted 10% before tax - forecast prices) of US$16.7 million (US$0.07 per MENA share) attributed to its NW Montana proven (1P) reserves.
  • Net present value (discounted 10% before tax - forecast prices) of US$148.4 million (US$0.66 per MENA share) attributed to its NW Montana proven + probable + possible (3P) reserves.

The evaluation was prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. For additional information relating to the reserves and resource estimates respecting our US properties, please see Gustavson's report and the material change report of the Company dated and filed October 11, 2011, both of which are available on

MENA is also continuing to evaluate several corporate and property acquisition opportunities and will provide further updates as negotiations progress.

About MENA Hydrocarbons

MENA Hydrocarbons is an international oil and gas company focused on growing an asset base of production, development and high impact exploration in the Middle East and North Africa region. In Egypt, MENA owns and operates the development lease for the Lagia oil field, a 32 square kilometre onshore block located on the Sinai Peninsula, directly adjacent to the Gulf of Suez. In Syria, MENA owns a 30% participating interest in Block 9 in Syria, a 10,032 square kilometre onshore block prospective for crude oil, natural gas and condensate. In the United States, MENA owns 6,242 gross acres (with an 81.2% average working interest) in Northwestern Montana with light/medium oil reserves, and 36,201 gross acres (with a 99.5% average working interest) in East-Central Utah prospective for both commercial gas sand and coal bed methane. MENA's shares currently trade on the TSX Venture Exchange under the symbol "MNH".

For more information, please see an updated version of MENA's corporate presentation on

Forward looking information

This news release contains forward-looking information relating to reserves and resource estimates in respect of the Company's properties, the values of such reserves estimates, MENA's plans for its US properties and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, development plans of the Company in respect of its Egyptian and US properties, the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with instability of the economic and political environments in which the Company operates or owns interests, oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, the inability to settle the definitive terms of the farmout arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.

The estimates of reserves and resources in this news release constitute forward-looking information which are subject to certain risks and uncertainties, including those associated with the Company's future development plans, the drilling and completion of future wells, limited available geological data and uncertainties regarding the actual production characteristics of, and recovery efficiencies associated with, the reservoirs, all of which are being assumed. As estimates, there is no guarantee that the estimated reserves or resources will be recovered or produced. Actual reserves and resources may be greater than or less than the estimates provided in this news release.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

Neither the 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.

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