CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE:MNH) has filed its financial statements and related management's discussion & analysis for the three and six months ended June 30, 2012 which are available on www.sedar.com.
Three Month ended June 30, 2012, highlights
Included in the results is a Syria Block 9 update including a post quarter end release of $1.5 million of restricted cash previously held on deposit in favour of the Syrian government, leaving MENA's June 30, 2012, working capital (pro-forma including this release) of a deficit of $6.2 million. The operator of Block 9 declared force majeure on July 16, 2012. Under the terms of the PSC, the time granted for completion of the exploration commitments shall be extended for the period of time under Force Majeure. Also, an impairment test was performed on the Company's Egyptian assets which determined that the assets were partially impaired at June 30, 2012, and an impairment loss of $37.3 million was recorded in the second quarter of 2012.
Strategic Review Process Update
On June 15, 2012, the Company announced it had initiated a process to identify, examine and consider alternatives with the view to enhancing shareholder value. A special committee of the board of directors has now been formed to deal with emerging interested parties. The special committee is comprised of the three independent MENA directors, being Abdel (Abby) Badwi, Robert Cross and Merfyn Roberts. The Company has accepted the resignations of Brian Tingle and Greg Clarkes, both former Skana Capital Corp. directors, and wishes to thank them for their contributions to MENA. The six remaining MENA directors remain committed to the strategic review process and determining the best possible outcome for all stakeholders.
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 completion of the strategic review process. 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 Company maintaining its stock exchange listing; the availability of capital on acceptable terms or at all and the timing such capital 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.