MENA Commences First Production from Lagia Field

Source: www.gulfoilandgas.com 3/30/2012, Location: Africa

MENA Hydrocarbons Inc 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.


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