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".
Most Popular Stories
- 15 Myths That Could Ruin Your Hispanic Ad Campaign
- AIG to Create 230 Jobs in Charlotte
- General Motors Names Mary Barra as First Female CEO
- Russia Says Nyet to Canada North Pole Claim
- Bipartisan Negotiators Reach Modest Budget Agreement
- Justin Bieber Visits Typhoon Victims, Plays Concert
- Senate Dems Move Forward With Obama Nominees
- MasterCard to Split Shares, Raise Dividend
- New Obama Aide to Focus on Climate Change
- Obama Nominee Confirmed for D.C. Appeals Court