CALGARY, ALBERTA -- (Marketwire) -- 03/05/13 -- MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE: MNH) announced that it has completed the issuance of 9,434,292 common shares of the Company in connection with the term loans announced on November 30, 2012, and the issuance of 25,000,000 units of the Company in connection with the private placement announced on December 14, 2012. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant is exercisable at a price of $0.05 at any time within 12 months from the date of issue, and at a price of $0.10 thereafter until two years from date of issue. The Company expects to complete within the next several weeks the issuance of an additional 390,451 common shares pursuant to the term loans.
These securities, including the common shares issuance on the exercise of the warrants, are subject to restrictions on resale for a period of four months and one day following closing, in addition to "control person" restrictions that apply to the securities issued to Mr. Bassaly. The issuance of these securities is subject to the final approval of the TSXV.
Operational and Management Update
Further to its January 15, 2013, operations update on the Company's 100% owned Lagia oil field in Egypt, MENA is pleased to confirm that its Lagia well #9 continues to produce at stabilized rates of 50-60 barrels of oil per day. In early January, Lagia #9 had its original sucker rod pump replaced by a progressive cavity pump which initiated a dramatic increase in the wells productivity.
As a result of the continuous oil production, MENA has been able to deliver crude oil shipments to EGPC on a regular basis. The Company is awaiting the arrival of its steam injection equipment and personnel for the initiation of steam injection operations in the field which is expected to begin later this month. Given the quality of sandstone reservoir and oil gravity, it is expected that production volumes from the wells will be significantly improved.
About the 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. Prior to MENA's 2012 activity within the lease, four wells had been drilled between the years 1949 to 2000 that had 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. MENA's shares currently trade on the TSX Venture Exchange under the symbol "MNH".
Forward looking information
This news release contains forward-looking information relating to the issuance of additional securities of MENA and to planned development and exploration activities on the properties in which the Company has interests. 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. The recovery and reserve estimates of MENA's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a result, you are cautioned not to place undue reliance on these forward-looking information.
Forward-looking information is based on certain factors and assumptions regarding, among other things, the Company maintaining its stock exchange listing; the availability of financing on acceptable terms or at all and the timing such financing is needed; 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 the Company's ability to successfully maintain its stock exchange listing, the availability of capital on acceptable terms or at all and the timing such capital is needed, 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.
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.
MENA Hydrocarbons Inc.
President and Chief Executive Officer
5 Hassan Hafez Street Saraia Elqoba, Cairo Egypt
MENA Hydrocarbons Inc.
Vice President, Finance & Chief Financial Officer
Main Phone: +1(403) 930-7500
MENA Hydrocarbons Inc.
Main Phone: +1(403) 930-7500
+1 (403) 930-7599 (FAX)
1000, 205 - 5th Avenue S.W.
Calgary, AB, T2P 2V7
Most Popular Stories
- Honda' s Accord Plug-in Hybrid Is a Fuel Miser
- National Retail Federation Reduces Sales Forecast
- Hernandez lawyer: Pats Records Dispute Resolved
- Social Media Startups That Pay You to Post
- Female Business Owners Still Face Gender Gap
- Amazon Fire Phone Improves on Familiar: Review
- Congress Leaving Town as Deadlines Loom
- Oregon Voters to Decide on Recreational Pot
- 4th Circuit Upholds Obamacare Subsidies
- Oregon to Vote on Recreational Marijuana