MENA Hydrocarbons Announces Operations Update for Lagia Oil Field Development

CALGARY, ALBERTA--(Marketwire - Jan. 30, 2012) - MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE:MNH.V - News) is pleased to announce an operations update for Lagia oil field development in Egypt.

Signature of rig contract for drilling and workover

MENA has signed a contract with Petroservices Drilling Overseas (PSDO) of Egypt for the rental of their 750 HP rig Shams 1 in order to commence operations on its Lagia oil field development in Egypt. The six well programme consists of working over two existing wells, the drilling of two development wells and drilling a further two appraisal wells, one of them contingent. The recently built rig is on its way from Tian Jin in China and expected to arrive in Egypt in the first half of February for commencement of operations in the Lagia license.

MENA has finalised all other work programmes and service contracts to commence work over and drilling operations. The existing Lagia 6 and 7 wells are expected to be completed with a subsurface pump whereafter two development wells and two appraisal wells are planned to be drilled to the top of the Thebes formation at around 1500 ft. The development wells will be completed with thermal casing in order to facilitate steam injection as part of a cyclic steam soak pilot project and fitted with a sucker rod pump. A contract for the rental of a 24 MM BTU steam plant is currently being negotiated. Temporary Production facilities for the pilot phase are planned to be rented from Sigma Petroleum Services enabling Installation in line with drilling activities. The produced oil will be transported by road tanker to the production facilities of the General Petroleum Company (GPC) at Ras Gharib. First routine production is expected in the second quarter of 2012.

Lagia Oil Field

MENA is the sole owner of 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.

The following table sets forth certain information relating to MENA's crude oil reserves contained in one main fault block covered by the Lagia Development Lease and the net present values of future net revenue associated with such reserves, as evaluated by DeGolyer & MacNaughton Canada Limited ("D&M") in the report of D&M dated May 19, 2011 evaluating the crude oil reserves of MENA as at May 18, 2011 (the "Lagia Reserves Report") in accordance with National Instrument 51 101 - "Standards of Disclosure for Oil and Gas Activities" and the standards contained in the Canadian Oil and Gas Evaluation Handbook ("COGE") and NI 51-101.

Gross Working
Interest Remaining Net Present Values of Future Net
Reserves Revenue
-----------------------------------------------------------
Discounted
US$
-----------------------------
Heavy Crude Undis-
Oil bbl counted at 5% at 10% at 15% at 20%
-----------------------------------------------------------
Proved Developed
Proved
Undeveloped 1,149,190 10,387 5,681 2,425 150(1,453)
Probable 2,898,104 54,816 37,696 26,840 19,646 14,679
-----------------------------------------------------------
Total Proved plus
Probable 4,047,294 65,203 43,377 29,265 19,796 13,226
Possible(1) 6,410,376 107,183 65,759 39,688 25,652 17,039
-----------------------------------------------------------
Total Proved plus
Probable plus
Possible(1) 10,457,670 172,386 107,136 68,953 45,448 30,265

Notes:

(1) Possible reserves are those additional reserves that are less certain to
be recovered than probable reserves. There is a 10% probability that the
quantities actually recovered will equal or exceed the sum of proved
plus probable plus possible reserves.

(2) Pursuant to the Lagia Concession, the Egyptian General Petroleum Company
will pay MENA's share of income taxes out of its share of the profit oil
and gas. As Egyptian income tax is factored into the royalty deductions,
income tax is deducted from all future net revenue amounts. Accordingly,
the net present value of future net revenue attributable to the reserves
categories referred to above are the same both before and after
deducting future income tax expenses for the purposes of NI 51-101.

(3) MENA requested that D&M provide the Lagia Reserves Report following the
completion of the acquisition of the remaining 25% interest in the Lagia
Development Lease and the related Lagia Concession. Other than
information relating to such acquisition, the Lagia Reserves Report is
based on data and other information available as of December 31, 2010.

(4) It should not be assumed that the estimates of future net revenues
presented in the table above represent the fair market value of the
reserves.

D&M also prepared a report dated July 26, 2010 estimating, as of March 31, 2010, the contingent petroleum resources of certain heavy crude oil accumulations located in the Lagia oil field (the "Lagia Resource Report"). Estimates of the gross working-interest (100% interest) contingent oil resources quantities for certain heavy crude oil accumulations located in the Lagia oil field, as of March 31, 2010, are summarized as follows, expressed in barrels (bbl) of oil:

Low Estimate Best Estimate High Estimate
-----------------------------------------
Gross working interest contingent
oil resources, bbl 356,823 3,374,001 11,992,575

Notes:

(1) Recovery efficiency is applied to contingent resources in this table.
(2) Application of any risk factor to contingent resources quantities does
not equate contingent resources with reserves.
(3) There is no certainty that it will be commercially viable to produce any
portion of the contingent resources evaluated and described above.

The petroleum resources set out above are classified as "contingent resources". Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty. See "Uncertainty Categories" below for further information.

Contingent resources may also be sub-classified based on project maturity and/or characterized by their economic status. Because of the lack of commerciality or sufficient development drilling, the contingent resources estimated in the Lagia Resource Report cannot be classified as reserves. The contingent resources estimated in the Lagia Resource Report were assigned an economic status of "undetermined". The principle contingencies identified in the Lagia Resource Report are that the project is at an early evaluation stage, and further development is required. There is no certainty that it will be commercially viable to produce any portion of the contingent 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 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, and 36,201 gross acres (with a 99.5% average working interest) in East-Central Utah prospective for both commercial gas sand and coal bed methane. MENA's shares currently trade on the TSX Venture Exchange under the symbol "MNH".

Further information

For more information, please see MENA's corporate presentation on www.menahydrocarbons.com.

Forward looking information

This news release contains forward-looking information relating to adding to reserves and resource estimates, planned development and exploration activities on the properties in which the Company has interests, 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 these 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 reserves and 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 reserves or resources will be recovered or produced. Actual reserves and resources may be greater than or less than the estimates provided in this presentation. Information concerning the independent evaluations 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

Graham Lyon
MENA Hydrocarbons Inc.
President & Chief Executive Officer
+1 (403) 930-7500
+1 (403) 930-7599 (FAX)

Jason Bednar
MENA Hydrocarbons Inc.
Vice President & Chief Financial Officer
+1 (403) 930-7500
+1 (403) 930-7599 (FAX)

1000, 205 - 5th Avenue S.W.
MENA Hydrocarbons Inc.
Calgary, AB
T2P 2V7
general_inquiries@menahydrocarbons.com
www.menahydrocarbons.com