On the 30th of January 2012, MENA Hydrocarbons 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.

On February 23rd, the company further announced that the Petroservices 750 HP rig Shams 1 has completed customs inspection and arrived on site at MENA’s 100% owned Lagia concession in Egypt.

Oil tanks have been placed and further production equipment is expected to arrive prior to the end of February.

Operations coordination meetings with all suppliers and contractors for drilling, completions, work overs and production are being held in Cairo next week. Final rig inspection by MENA is expected to be completed in the next 10-14 days, at which time MENA expects to begin a six well program starting with its first re-entry on the Lagia 6 existing well. Two reentries followed by 4 new drills will comprise the first phase of the Lagia development program.