UPDATE: MENA Hydrocarbons Provides Update; Shares Up 30% at Midday
MENA Hydrocarbons Inc. (MNH.V) has released the following operational update.
Activities on the Company's 100% owned Lagia oil field in Egypt have re-commenced. A new progressive cavity pump ( PCP ) has been installed in the Lagia well #9 which has produced over the last 12 days at an average stabilized rate of 90 barrels per day of approximately 16 degree API oil gravity. This PCP replaces the original sucker rod pump that was previously installed in Lagia #9.
MENA has also completed installation of required production facilities in the field with three oil storage tanks, a water tank, and a 500 barrel fuel tank and has connected all producing wells with flow lines.
Lagia wells #8 and #10, which were also drilled in 2012 and designed for steam injection, will be placed on production following an initial steam injection cycle to begin next month.
The two remaining production wells in the field, Lagia #6 and #7, were drilled by a previous operator and were not completed with thermal casing, however, their flow rates are expected to increase from their current 22 barrels per day with steam injection into the other nearby wells.
MNH has delivered 4,600 barrels of crude oil inventory for sale to the General Petroleum Corporation of Egypt at an agreed price of $77 per barrel.
Mena Hydrocarbons is up 1.5 cents to 6.5 cents at midday. More than 2.39 million shares have been traded.