MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENUTRE: MNH)
is pleased to announce the commencement of drilling operations in
Syria with the spud of Itheria-1, the first exploration well on
Block 9, Syria.
The planned total depth of the well is 3,256 metres and it is
expected to take 80 days to drill, on a dry hole basis. The
Itheria-1 well will test a large structure with four-way dip
closure defined by 3D seismic. Primary targets are sandstones of
Ordivician age.
Graham Lyon, President and Chief Executive Officer of MENA said:
"The Itheria prospect, the first of two 2011 exploration wells to
assess the prospectivity of Block 9, provides MENA with a high
impact exploration opportunity which is one further step in the
MENA strategy of delivering a portfolio of development, production
and high impact exploration."
Pursuant to a farmout agreement, MENA Hydrocarbons (Syria) Ltd.,
an indirect wholly-owned subsidiary of MENA will fund 60% of the
costs for the drilling of Itheria-1 with Triton Petroleum Pte Ltd.
and Loon Latakia Ltd. (an indirect wholly-owned subsidiary of
Kulczyk Oil Ventures Inc.) each paying 20% of the remaining costs.
The well is being operated by Loon Latakia Limited.
About Syria, Block 9
MENA owns a 30% participating interest in a Syrian concession
for the exclusive right to explore the onshore exploration block in
north western Syria known as "Block 9". The concession is for an
initial exploration period of 4 years, which term may be extended
for up to 5 years subject to the satisfaction of certain
conditions. Block 9 is located on the north western flank of the
hydrocarbon producing Palmyrides Basin. The block, which comprises
10,032 square kilometres (2,478,876 acres), is prospective for
crude oil, natural gas and condensate. Major gas and oil pipelines
lie in close proximity to the initial exploration focus area in the
southeast part of Block 9.
RPS Energy Canada Ltd. ("RPS") prepared a report dated March 21,
2011 estimating, as at December 31, 2010, the oil and gas
prospective resources of two prospect locations (Itheria and
Bashaer) in Block 9 in Syria (the "Block 9 Resource Report"). The
Block 9 Resource Report was prepared in accordance with the COGE
Handbook, and the definitions contained in NI 51 101 and the COGE
Handbook, for the Syria Block 9 consortium consisting of Loon
Latakia Ltd. (Kulczyk Oil Ventures), MENA and Triton Petroleum Pte
Ltd.
The tables below summarize RPS' "high", "best" and "low"
estimates for prospective oil and solution gas resources of the
Itheria and Bashaer prospect locations in Block 9 in Syria:
Prospective Resources Summary
100% field basis, unrisked
Low Best High
Prospect Resources Category Estimate Estimate Estimate Mean
----------------------------------------------------------------------------
Itheria(1) Oil (MMbbls) 80 300 677 350
Gas (Bscf) 57 225 530 268
Bashaer(1) Oil (MMbbls) 50 94 165 102
Gas (Bscf) 25 47 82 51
Prospective Resources Summary
MENA 30% working interest basis, unrisked
Low Best High
Prospect Resources Category Estimate Estimate Estimate Mean
---------------------------------------------------------------------------
Itheria(1) Oil (MMbbls) 24 90 203 105
Gas (Bscf) 17 68 159 81
Bashaer(1) Oil (MMbbls) 15 28 49 31
Gas (Bscf) 7.5 14 25 15
Notes:
1. "GPoS" or "Geological Probability of Success" is estimated by RPS to be
19% for the Itheria prospect and 14% for the Bashaer prospect. This
concept refers to the technical chance of success of a geological model
as it applies to the entire volumetric expectation curve between P0 and
P100. No commercial cut-off is applied and the geological chance should
not be taken as necessarily equivalent to the commercial success chance.
Geological chances calculated by multiplying play chance (source,
reservoir and seal) and prospect specific chance (trap and timing, seal,
charge and reservoir).
The petroleum resources set out above are classified as
"prospective resources". Prospective resources are those quantities
of petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of
future development projects. Prospective resources have both an
associated chance of discovery and a chance of development. There
is no certainty that any portion of the resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the resources.
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 kilometer 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 kilometer onshore block prospective for crude oil,
natural gas and condensate. 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 drilling of the Itheria-1 well, resource estimates 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.
The estimates of resources in this news release constitute
forward-looking information which are subject to certain risks and
uncertainties, including those associated with 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 resources will be recovered or produced. Actual
resources may be greater than or less than the estimates provided
in this presentation. Information concerning the independent
evaluation from which these estimates are derived may be accessed
under the Company's profile on SEDAR at www.sedar.com.
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.
Contacts: MENA Hydrocarbons Inc. Graham Lyon President &
Chief Executive Officer +1.403.930.7500 MENA Hydrocarbons Inc.
Jason Bednar Vice President & Chief Financial Officer
+1.403.930.7500 MENA Hydrocarbons Inc. 1000, 205 - 5th Avenue S.W.
Calgary, AB T2P 2V7 +1.403.930.7599 (FAX)
general_inquiries@menahydrocarbons.com www.menahydrocarbons.com