MENA Hydrocarbons Inc.

MENA Hydrocarbons Inc.

March 30, 2012 06:00 ET

MENA Hydrocarbons Announces Sustained First Oil Production from the Lagia Oil Field

CALGARY, ALBERTA--(Marketwire - March 30, 2012) - MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE:MNH) is pleased to announce the results of its Lagia 6 re-entry, the first of 2 re-entries in its six well, first phase development program on its 100% owned Lagia Development Lease in Egypt.

Commencement of first oil production

PetroSinai, the joint venture operating company operating the Lagia Development Lease in Egypt on behalf of the Egyptian Petroleum Company and MENA, has successfully started production operations in the Lagia oil field. The Lagia 6 well, drilled in 2000, has been re-entered, re-perforated in the Nukhul formation and has now been on production for one week. The well has flowed at rates of up to 150 barrels of fluid per day under clean up (including load fluid) and is currently producing clean oil into a tank at approximately 60 barrels of oil per day utilising a progressive cavity pump at an appropriate setting. The rig has now moved to the Lagia 7 well, also originally drilled in 2000, to undertake a similar work-over programme. The rig will then move to drill the first of a four new drill well programme, Lagia 8. The Lagia 8 well will be fractured to further enhance the production capacity of Nukhul completed wells. The engineered development plan calls for up to 55 wells for full development of this current fault block. MENA believes adjacent fault blocks may also be oil bearing.

Mr. Graham Lyon, President and Chief Executive Officer of MENA commented on the results: "We are very pleased with the Lagia 6 well results thus far and look forward to the drilling of the four new wells. The joint venture plans to subject these new four wells to more modern technology by utilising either fracturing or cyclic steam technology, technologies which the Lagia 6 and 7 wells were unable to handle given the in place down hole design of those wells. The application of these technologies will undoubtedly further enhance flow rates from the Nukhul formation."

Lagia Oil Field

MENA is the sole participant in the joint venture company with EGPC, PetroSinai which operates the Lagia Development Lease covering a 32 square kilometre block of land located on the Sinai Peninsula, directly adjacent to the Gulf of Suez. Within the lease, four wells have been drilled between the years 1949 to 2000 that have identified the Lagia oil field. Three producing oil fields, Sudr, Matarma and Asl, are located as close as 26 km to the north of the Lagia oil field.

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 MENA's corporate presentation on

Forward looking information

This news release contains forward-looking information relating to adding to planned development and exploration activities on the properties in which the Company has interests, 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, 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.

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.


The Company cautions readers that the production results to date are not necessarily indicative of long-term performance or of ultimate recovery.

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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