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Global Energy Conference

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Presentation on theme: "Global Energy Conference"— Presentation transcript:

1 Global Energy Conference
Miami, 12th October 2011

2 Forward-looking information
Forward-looking information relates to management's future outlook and anticipated events or results, and includes statements and information regarding the future plans or prospects of MENA. Without limitation, statements about reserve and resource estimates, prospective financial performance, financial position and cash flows, and proposed acquisitions constitute 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 environment in which MENA operates; the timely receipt of any required regulatory approvals; the ability of MENA to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which MENA has an interest in to operate the field in a safe, efficient and effective manner; the ability of MENA 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 or exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of MENA 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 MENA operates; and the ability of MENA to successfully market its oil and natural gas products, and other similar matters. While MENA 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 general stability of the economic and political environment in which MENA operates, 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 acquisitions and joint venture 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 foregoing lists of assumptions, risks and uncertainties are not exhaustive. Additional information on these and other risks that could affect MENA's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( or at MENA's website ( You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While MENA may elect to, MENA is under no obligation and does not undertake to update this information at any particular time, except as required by law.

3 Forward-looking information
Resource information Certain of the petroleum resources set out in this document 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. Certain of the petroleum resources set out in this document are classified as "prospective resources". Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. D&M Reports For additional information relating to the reserves and resource estimates respecting our Lagia property, please see the material change report of the Company dated and filed on June 9, 2011 on and the joint management information circular and proxy statement of the Company dated April 15, 2011 and filed on on April 27, 2011. Gustavson report For additional information relating to the reserves and resource estimates respecting our US properties, please see the material change report of the Company dated and filed October 11, 2011 on Uncertainty Categories Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Consequently, estimates of resources are generally quoted as a range according to the level of confidence associated with the estimates. The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or by a probability distribution. Resources are generally provided as low, best, and high estimates as follows: • "Low Estimate" -- This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. • "Best Estimate" -- This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate. • "High Estimate" -- This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

4 MENA: Overview Focussed on building and exploiting a portfolio of production, development and high-impact exploration acreage. An experienced E&P team with a proven track record in creating material shareholder value. Plans to unlock the technical and commercial potential of assets in the Middle East/North Africa (MENA) and Mediterranean regions. Initial portfolio comprises: Lagia development/appraisal asset in Egypt Block IX exploration in Syria Development and exploration onshore US MENA’s first acquisition (West Mediterranean Block 1 in Egypt) awaiting assignment by EGPC.

5 MENA: Capital Market Profile
MENA Hydrocarbons is listed on the TSX Venture Exchange under the symbol “MNH” following the reverse takeover of SKANA Capital Corp on May 20th, 2011 Directors and officers of the Company own million (40%) of outstanding common shares Currently million (57%) of common shares outstanding are held in escrow; including 86.6 million held by directors and officers for periods up to 3 years MENA Net After Tax NPV10 Reserve Valuation: 2P US $53MM 3P US $163MM MENA Hydrocarbons Inc. Trading Symbol (TSXV) MNH Current share Price ($/share) 0.14 Shares Outstanding (Millions) 226.4 (1) (3) Market Cap (Basic) ($ Millions) 31.7 Working Capital (4.0) Enterprise Value 27.7 Share price as at September 30th, 2011 Dilutive instruments outstanding include 37.4 million warrants exercisable at $0.35 until June 2013 and 10.0 million stock options exercisable at $0.44 and $0.55 until October 2015 and May 2016 respectively Estimated working capital as at September 30st, 2011 All dollar amounts are in Canadian dollars unless otherwise stated (2)

6 MENA: Investment Highlights
Proven Leadership and Board Graham Lyon, President and CEO formerly VP Business Development of Petro-Canada's International and Offshore Business unit. Ex-Petro-Canada International Team. Executives and Board Members have significant financial, commercial and technical experience in the region. Operational and Regional Expertise of Leaders Previous exploration success in Syria, Libya, Tunisia, Morocco, Algeria, Egypt, UAE, Mauritania, North Sea, Caribbean, Russia and Kazakhstan. Historical success in the region applying technical expertise to realise significant upside potential in assets. An exceptional network of contacts in the MENA region, in governments, NOCs and IOCs to bring opportunities and deal flow. Large Prospective Resource 10.4 MMbbl of 3P oil reserves in Lagia field, Egypt. 90 MMboe of discovered resources in Egypt (subject to EGPC approval). 759 MMboe of unrisked prospective resources (best estimate) in Egypt (West-Med 756 MMboe subject to EGPC approval). Drilling first of two exploration wells in Syria block IX. Currently two work-overs and three development wells planned in Egypt. Net oil 3P reserves of 5.4 MMbbl in the US, net prospective oil resources of 7.0 MMbbl (best estimate) and net prospective gas resources of 107 Bcf (best estimate) Sizeable Deal Pipeline Utilize commercial acumen to acquire premium assets at the right price. A proven team of deal-makers used to working together: Past transactions in excess of $5 billion: Individual deals from $10 million to $2 billion. Leveraging MENA’s network of contacts in the region; first transaction agreed, subject to Government consent.

7 MENA: Proven Leadership Team
Graham Lyon President & Chief Executive Officer Jason Bednar Vice President & Chief Financial Officer Joerg Pigaht Vice-President & Chief Operating Officer Jim Strachan Vice-President & Chief Geoscientist Same team, different vehicle: CEO, COO and Chief Geoscientist have worked together for 20+ years Other former colleagues supporting include Legal Counsel, Technical Director, Chief Economist, Planning Manager, Geoscientist.

8 MENA: Experienced Board of Directors
Successful and experienced executives Abby Badwi Rick Grafton Robert Cross Merfyn Roberts Dr. Magdy Bassaly Jason Bednar Brian Tingle Graham Lyon Greg Clarkes

9 MENA: Regional Focus Selecting the best assets for investment
Proven hydrocarbon systems with significant untapped exploration and development potential Opportunity to apply new technologies to unlock resource Attractive fiscal terms with stable contracts Low cost of entry due to “perceived” regional risk Abundant infrastructure Exceptional contacts Closely monitoring “Arab Spring”

10 EGYPT: Lagia Field – Development with Upside
100% W.I. in undeveloped oil field onshore Gulf of Suez / Sinai Development Pilot: 2 work-overs 2 development wells for cyclic steam injection 1 appraisal well Resource Potential: 4.0 MMbbl 2P reserves 10.4 MMbbl 3P reserves 12.0 MMbbl contingent resources (high estimate) NI (D&M 2011)

11 EGYPT: Lagia Field, Technology-Led Development
Opportunity for increased well productivity using modern techniques on shallow (<1500 ft) oil field Oil (16-19° API) in shallow reservoirs Wells were successfully tested but never produced Oil water contact is not defined, suggesting additional upside potential Potential for light oil: 38°API oil recovered from deeper untested reservoirs Several untested fault blocks on concession for additional exploration potential Lagia Asset Summary Working Interest 100% Block Size 32 km 2 Work-overs Development and Appraisal Wells 1 Prospective Formations Miocene Nukhul, Eocene Thebes Target Depth <1,500 ft 3P Reserves (1) 10.4 MMbbl 2011 Planned Capex $2.8 MM Planned Capex Cost (US$000) 2011 2012 Well Workovers $750 Development Drilling $1,240 Appraisal Drilling $0 Total $2,420 Contingency 15% $363 $2,783 NI compliant reserves estimates based on May 19, 2011 D&M report (see also D&M Reports. NI compliant contingent resources estimates based on March 31, 2010 D&M report (see also D&M Reports). Development and Appraisal Wells 6 Contingent Resources (high estimate) (2) 12.0 MMbbl $0 $2,880 $3,300 Production Facilities $430 $3,400 $9,580 $1,437 $11,017

12 EGYPT Lagia: Field Geology
South Lagia 1 Well: light oil potential in deeper reservoirs. Deeper reservoirs untested beneath structure crest. Untested High Block Main Fault Block containing assigned reserves in Nukhul Sandstone. Main Reservoir: Lower Miocene Nukhul Sst 5 pay sands up to 85ft net 2D seismic data available Lagia 10 Lagia 9 Lagia 8 Top Nukhul TWT structure map (MENA 2011) Significant upside potential in other reservoirs: Analogue fields (Sudr/Asl) suggest prolific upside in Eocene Limestone Deeper targets are untested beneath structure crest Thebes Lst, Matulla, Raha and Nubian Sst 38° API oil sampled in South Lagia #1 well. Reservoir unknown. Top Nukhul TWT structure map (MENA 2011) Lagia Deep Stratigraphic Column

13 EGYPT Lagia: Nukhul 2P Production Profile
Nukhul Formation Initial Production 50 bopd Recovery / Well 59 Mbbl Average Porosity 16.4% Average Pay 51 ft. Permeability mD Cost per well US$ 0.8 MM * * see D&M Reports Development Plan for 2P reserves requires cyclic steam injection. The Lagia Nukhul 2P production profile contains significant uncertainty that will be clarified by work-overs, drilling and testing in Q4 – 2011 to Q1 2012

14 EGYPT Lagia: Reserves D&M report (NI ) effective May 18, 2011 (see also D&M Reports) Reserves Category MENA W.I. (Mbbl) NPV (US$000) 0% 5% 10% 15% 20% Proved: Undeveloped 1,149 10,387 5,681 2,425 150 -1,453 Total 1P Probable 2,898 54,816 37,696 26,840 19,646 14,679 Total 2P 4,047 65,203 43,377 29,265 19,796 13,226 Possible* 6,410 107,183 63,759 39,688 25,652 17,039 Total 3P 10,458 172,386 107,136 68,953 45,448 30,265 Price assumption for 2011 crude oil based on Brent price assumption of US$91/bbl inflated at 2%pa, with an adjustment factor of 67% to account for heavy oil. * 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.

15 EGYPT West Mediterranean Block 1: Exploration/Appraisal
Signed acquisition agreement to acquire 55%WI in block with undeveloped gas discoveries offshore northern Egypt (WM-1A) 60km offshore in water depths of m Has full 3D seismic coverage Multi-TCF gas exploration upside in four untested features, likely to have valuable liquids content Abu Sir Deep A B (relinq) C (relinq) Dekhila El King Abu Sir Al Bahig El Max Dekhila Deep El King East Deep El King Deep Gas discovery Gas-condensate prospect

16 West Mediterranean Block 1: Discoveries and high-impact exploration potential
West Med Asset Summary Block Operator MENA International Petroleum Co. JV Development Lease Operator North Alamein Petroleum Co. Block Area 1001 sq.km Contingent Resource 0.31 – 0.65 Tcf + 4 – 12MMbbl Prospective Target Depth m TVD ss Prospective Potential: 1.3Tcf + 72MMbbl EL King Deep El King East Dekhila Deep Abu Sir Deep 2011 Planned Capex US$0MM SPA signed with Hess (awaiting government approval) 5 shallow gas discoveries Development lease granted in June for 20 years from 1st gas delivery (one optional 5 year extension, max to 2039) Potential for multi-TCF gas with valuable condensate in traps beneath the existing discoveries Moderate exploration risk Analogous large discoveries nearby New export route available from (Facilities in planning) All exploration license commitments fulfilled MENA prospective resource 3.5TCF and 172MMbbl condensate (1) Oligo-Miocene Prospects 4 (1) 0.9Tcf + 44MMbbl 0.9Tcf + 42MMbbl 0.8Tcf + 46MMbbl 2012 Planned Capex US$6MM (1) Internal estimate (MENA WI 55%, best estimate) MENA % (Operator) RWE % Kufpec % Development Operator is JV NALPETCO

17 West Mediterranean Block 1: Multiple pay zones and proven analogues
Hodoa field: Gas with liquids in Oligocene Sst Block 1: Dry gas in Pliocene Sst. Potential for gas with liquids in the Oligo-Miocene interval. On-block Mio-Pliocene discoveries E.Miocene Raven field discovery (BP/RWE 25km to east) 1.7Tcf + 55MMbbl cond* Raven field: E.Miocene Sst gas with liquids Oligocene Hodoa field discovery (BP/RWE 35km to NE) 1.5Tcf* Fayoum field: Pliocene bio-gas *Source: Woodmac Source : Wood Mackenzie Block 1: Stacked-pay potential

18 West Mediterranean Block 1 : High-impact exploration potential
Deeper multi-zone potential undrilled (Oligocene to early Miocene) despite adjacent analogous discoveries on- trend Excellent multi-azimuth 3D seismic program was acquired and interpreted Four prospects identified Moderate exploration risk (1:3 to 1:6) Large high-pressure traps lie directly beneath existing normally-pressured Mio- Pliocene gas discoveries Possibility of using deep exploration wells as shallow pool gas producers BP’s Raven field El King Prospect North Source: BP from Whaley,J, The Raven field: Planning for success. (GEO ExPro, Feb 2008)   18

19 Prospective Resources
West Mediterranean Block 1: Resources and prospective resources Discovery HIIP Contingent Resources MENA WI El King Bcf MMbbl 195 to 405Bcf+ 2 to 7MMbbl Bcf+1-4MMbbl Abu Sir Bcf 200 to 294Bcf Bcf El Max Bcf 50 to 140Bcf 28-77Bcf Al Bahig Bcf Dekhila Bcf MMbbl 90 to 195Bcf+5 to 14MMbbl 50-107Bcf+3-8MMbbl Totals 585 to 1174Bcf + 7 to 21MMbbl Bcf + 4 to 12MMbbl Prospect Name HIIP Potential (P99 to P1) Midpoint Prospective Resources Midpoint MENA WI Prospective Resources Probability of Success El King Deep 0.4 – 6.6Tcf MMbbl 2.87Tcf+132MMbbl 1.3Tcf+ 72MMbbl 15-35% El King East Tcf MMbbl** 1.7Tcf+80MMbbl** 0.9Tcf+44MMbbl** 25% Dekhila Deep Tcf MMbbl 1.6Tcf+75MMbbl 0.9Tcf+42MMbbl Abu Sir Complex Tcf MMbbl 1.4Tcf+85MMbbl 0.8Tcf+46MMbbl 10-25% Note: Internal estimates, 100% figures (best estimate). MENA 55%WI. ** Resources of complete prospect. Part of the structure lies in neighbouring concession

20 West Mediterranean Block 1
West Mediterranean Block 1 : CNG Development concept for shallow gas discoveries FPSO loads gas from subsea field. FPSO processes gas to CNG, stores condensate. Target markets Mediterranean Gas on gas Gas on marine oil West Mediterranean Block 1 Number of tankers depends on gas volume and distance. Typically 4 shuttle tankers would be required for the East Mediterranean market. Capital costs approx. $260 MM sub sea facilities and wells.

21 West Mediterranean Block 1 : Possible Production Profile (deep gas discovery for domestic sales)
El King El King Deep Initial production in Mboepd 18 58 Average porosity in % 18-33 20-25 Average pay thickness in m 20-30 15-23 Permeability range in mD n/a (MENA in-house best estimate) Production quoted in MMboe using 6Mcf = 1 boe The existing discoveries are too small to be developed for the domestic market at current domestic gas prices. Development requires prices in excess of US$ 6/ Mcf. The highest to date is around US$5.70/ Mcf. MENA has potential alternative market development concept via export and CNG. A 1.5 TCF discovery with 75 MMbbl liquids could provide in excess of 20% returns with a gas price in range US$3.0/ Mcf to US$4.1/ Mcf for the domestic market.

22 SYRIA Block IX: Exploration
Under-explored: 4 wells in 10,000km² 28-35⁰API oils in Mudawara and Harbaja fields to the south Heavy oil fields 15-16º API at Sfayeh-Wahab to the east Nearby gas and oil export lines and a new gas processing plant in Homs (250 MMcf/d capacity) 420 km 3D seismic program acquired and interpreted Itheria-1 spud 21st July 2011 Political situation is uncertain but being closely monitored MENA (farm-in) 30% non-operator

23 Lewis and Clark Project area
Onshore US assets: Lewis & Clark Project Acquired by SKANA before RTO NW Montana Undeveloped oil reserves and prospective resources Shallow Mississippian carbonate reservoirs Adjacent to Pondera oil field ( °API sulphurous crude) MENA net 1P reserves 0.4MMbbl, 2P reserves 1.1MMbbl and 3P reserves 5.4 MMbbl MENA net prospective oil resources 7.0 MMbbl (best) MENA net prospective gas resources 107 Bcf (best) Lewis and Clark Project area * NI report by Gustavson Associates dated 23rd September, 2011

24 US: Lewis & Clark Reserves
Gustavson Associates effective September 23, 2011 Reserves Category MENA Net (Mbbl) After Tax NPV (US$000) 0% 5% 10% 15% 20% Proved: Undeveloped 411 16,057 12,888 10,673 9,052 7,818 Total 1P Probable 676 22,805 17,360 13,567 10,825 8,780 Total 2P 1086 38,863 30,248 24,241 19,877 16,599 Possible* 4346 148,134 100,297 69,989 50,094 36,632 Total 3P 5432 186,997 130,456 94,231 69,972 53,231 Summary of Oil Reserves, NPV of Future Net Revenue, Forecast Prices and Costs as of September 1, 2011. * 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.

25 Onshore US assets: Wasatch Plateau Gas Project
East-central Utah Prospective gas resources Bcf (net) Cretaceous Ferron Sandstones Coalbed Methane potential Analogues located nearby prove that both h/c systems are effective in this locality Schematic section showing producing analogues at Clear Creek (conventional gas) and Drunkard’s Wash (CBM)

26 MENA: 2011 Timeline - Acquire, Explore, Appraise, Develop
Engage Management Team Close Skana RTO Review strategic options for US assets Corporate Data Review Evaluated Growth Opportunities Approve Lagia Work Program Syria Drill Itheria Work-Over 2 Wells Rent Temporary Processing Facilities Egypt - Lagia Drill 2 Development Wells Egypt- West Med EGPC Approval Egypt – West Med Contract Signature Contract Signature Partner Approval OCM * Slide excludes ongoing business development activities 26

27 MENA: 2012 Timeline - Acquire, Explore, Appraise, Develop
Drill Bashaer Exploration Well Evaluate Well Results Syria Drill shallow Appraisal well Cyclic Steam Soak Pilot Drill two development wells Agree Full Field Development Plan Egypt - Lagia Drill Appraisal well to deeper horizons Perform Reservoir Simulation Appraise other fault blocks and deeper horizons Procure Equipment for Full field Development Plan Pre-FEED study for development option(s) Project Sanction Egypt – West Med Gas Sales Contract negotiations Deep Exploration Well design and cost evaluation Deep Well planning and procurement * Slide excludes business development activities

28 MENA: Portfolio Growth and Replenishment
Filling the Hopper MENA Project Process 25 Opportunities Identify MENA have identified 36 opportunities Screen down to 15 Screen 25 projects are currently in the screening process, with 11 rejected Select 10 Select 13 projects are currently being investigated at various stages Define 5 Define Negotiate 3-5 Negotiate Offers have been submitted and are under negotiation Close deal 3-5 Close 1 opportunity into MENA portfolio (awaiting EGPC approval) Operate Operate 1-2 deals 28

29 MENA: Potential Growth
Value Growth MENA market cap at September 30th, 2011 was C$31.7MM Significant growth expected within the next 3-5 years from existing assets and potential acquisitions

30 MENA: Summary Our Energy + Knowledge + Experience = Profitable Portfolio Growth Proven management team Unlock resource with modern technology and commercial acumen High impact exploration Acquisition pipeline delivering real growth opportunities Experienced board members (1) Experienced Team (2) Overlooked Potential (3) Deal Pipeline Delivering Positioned to create a vigorous and successful oil and gas company by building and exploiting a portfolio of production, development and high impact exploration assets

31 MENA: The Board Graham Lyon (President & CEO)
Mr. Lyon is a senior energy executive with over 30 years experience encompassing global technical, operational and commercial leadership roles. Mr. Lyon graduated from Imperial College, University of London with a Bachelor of Science degree (Eng) Honours in Petroleum Engineering with post graduate education from the Ivy School of Business (Canada), SMU Cox School of Business (US) and INSEAD (Europe) in energy related leadership, business administration and M&A disciplines. Mr. Lyon worked with Petro-Canada as an officer and director and through its predecessor companies for 25 years. He held various senior positions, including Vice President Business Development, International and Offshore; Regional Manager for the Middle East and Caspian; Head of Business Development and Production Manager for Egypt. As Vice President of Business Development for Petro-Canada's International and Offshore Business unit, he was also responsible for the strategic planning and economical development of this largest business unit. Abdel (Abby) Badwi (Chairman) Mr. Abdel (Abby) Badwi, PGeol, is an international energy executive and professional geologist, with more than 35 years experience in the exploration, development, and production of oil and gas fields, in North America, South America, Europe, Asia and the Middle East. He is currently the President and Chief Executive Officer of Bankers Petroleum Ltd. Previously, he served as President and Chief Executive Officer of Rally Energy Corp., which was sold in He has been an officer and director of several Canadian public and private companies. Mr. Badwi is currently a director of Bankers Petroleum, Valeura Energy and ArPetrol Inc. Robert Cross Mr. Robert Cross has more than 20 years of experience as a financier in the mining and oil & gas sectors. Mr. Cross is a co- founder and Non-Executive Chairman of Bankers Petroleum Ltd., Non-Executive Chairman of B2Gold Corp., co-founder and Chairman of Petrodorado Energy Ltd and, until October 2007, was the Non-Executive Chairman of Northern Orion Resources Inc. Between 1996 and 1998, Mr. Cross was Chairman and Chief Executive Officer of Yorkton Securities Inc. From 1987 to , he was a Partner, Investment Banking with Gordon Capital Corporation in Toronto. He has an Engineering Degree from the University of Waterloo, and received his MBA from Harvard Business School in Mr. Cross is currently a director of MENA, Gallic Energy Ltd., Bankers Petroleum Ltd., B2Gold Corp., Petrodorado Energy Ltd., BNK Petroleum Inc., LNG Energy Ltd., Avanti Mining Inc. and Zodiac Exploration Inc.

32 MENA: The Board Richard Grafton Greg Clarkes Brian Tingle
Mr. Richard Grafton has over 30 years' experience in the investment and energy business. Currently, Mr. Grafton is President and Chief Executive Officer of Grafton Capital Corporation, a private capital company concentrating on long term value creation. In 2007, Mr. Grafton was appointed Vice-Chairman of Canaccord Capital Corporation acting as the firm's ambassador to the global energy markets. Prior thereto, Mr. Grafton acted as Executive Vice President and Managing Director, Global Head of Energy of Canaccord Adams where he was responsible for all aspects of the firm's oil and gas operations. Mr. Grafton is currently a director of Peak Energy Services Ltd., Gallic Energy Ltd. and Altus Energy Services Ltd. Greg Clarkes Mr. Clarkes is a financier with over 20 years of experience in raising capital for public companies in the resource and industrial sectors. He has been a major shareholder as well as an officer and director of many junior venture companies, and has been instrumental in helping them formulate business plans and strategies resulting in successful utilization of their financial resources. He was a founder, director and significant shareholder of Skye Resources Inc. which was sold to HudBay Minerals Inc. in 2008 for $460 million. He is also the founder, officer and director of SKANA. Brian Tingle Mr. Tingle has a Bachelor of Commerce in Finance from the University of British Columbia and has accumulated 15 years of experience in the resource and technology venture capital markets, serving on the board and advisory boards of numerous private and TSXV companies. He is the Managing Partner of a UK Firm that has helped raise over $150 million over the past two years. Mr. Tingle is currently a director of Eshippers Management Ltd. and was, until June 2010, a director of SKANA. Dr. Magdy L Bassaly Dr. Magdy L. Bassaly has over 18 years of experience in the international energy sector. He founded the National Geophysical Company in 1996 as well as the National Exploration Company. He founded Alliance International Petroleum Company that held the Lagia development lease in Egypt (Alliance Egyptian National Oil Company). Dr. Bassaly is currently the President of MENA International Petroleum Company and the Chairman of Child Support Foundation (international charity foundation for children in Africa).

33 MENA: The Board Jason Bednar (VP & CFO) Merfyn Roberts
Mr. Jason Bednar is a Chartered Accountant with more than 15 years professional experience. Mr. Bednar was the Chief Financial Officer of Sagres Energy Inc., (June 2009 – May 2011) and has been Chief Financial Officer of MENA Hydrocarbons Inc. (since July 2010). He was the founding Chief Financial Officer of Pan Orient Energy Corp., a South East Asia Exploration company, from 2004 to May 2009, past Manager of Financial Reporting for Canadian 88 Energy ( ) and former Controller of Canadian Superior Energy ( ). He is a member of the board of directors of Canacol Energy and Solimar Energy, and is the Chairman of the board of directors of Gallic Energy. Merfyn Roberts Mr. Merfyn Roberts of London, England has been a fund manager and investment advisor for more than 25 years and has been closely associated with the energy industry. He sits on the board of directors of several resource companies, including Agnico-Eagle Mines Limited, Eastern Platinum Limited and Rambler Metals and Mining plc. Mr Roberts is a graduate of Liverpool University, UK (BSc. Geology) and Oxford University, UK (MSc. Geochemistry) and is a member of the Institute of Chartered Accountants in England and Wales. Mr. Roberts is currently a director of Rambler Metals and Mining plc, Agnico- Eagle Mines, Sennen Resources, Newport Exploration, and Eastern Platinum

34 MENA: The Leadership Team
Graham Lyon (President & CEO) Mr. Lyon is a senior energy executive with over 30 years experience encompassing global technical, operational and commercial leadership roles. Mr. Lyon graduated from Imperial College, University of London with a Bachelor of Science degree (Eng) Honours in Petroleum Engineering with post grad education from the Ivy School of Business (Canada), SMU Cox school of Business (US) and INSEAD (Europe) in energy related leadership, business administration and M&A disciplines. Mr. Lyon worked with Petro-Canada as an officer and director and through its predecessor companies for 25 years. He held various senior positions, including Vice President Business Development, International and Offshore, Regional Manager for the Middle East and Caspian, Head of Business Development and Production Manager for Egypt. As Vice President of Business Development for Petro-Canada's International and Offshore Business unit, he was also responsible for the strategic planning and economical development of this largest business unit. Jason Bednar (VP & CFO) Mr. Jason Bednar is a Chartered Accountant with more than 15 years professional experience. Mr. Bednar was the Chief Financial Officer of Sagres Energy Inc., (June 2009 – May 2011) and has been Chief Financial Officer of MENA Hydrocarbons Inc. (since July 2010). He was the founding Chief Financial Officer of Pan Orient Energy Corp., a South East Asia Exploration company, from 2004 to May 2009, past Manager of Financial Reporting for Canadian 88 Energy ( ) and former Controller of Canadian Superior Energy ( ). He is a member of the board of directors of Canacol Energy and Solimar Energy and is the Chairman of the board of directors of Gallic Energy.

35 MENA: The Leadership Team
Joerg Pigaht (VP & COO) Mr. Joerg Pigaht is a senior operational oil and gas leader with over 30 years experience in the international arena. Mr. Pigaht is a petroleum engineer by background and has spent the majority of his career with Petro-Canada and its predecessor companies. He has led businesses in Libya, producing 100,000 boe/d operated production, and Syria with over 150,000 boe/d equity production. He has developed operated businesses offshore Netherlands for Petro-Canada and most recently in Brazil for Maersk Oil as Director. Joerg has lived and worked during his formative years in Egypt as head of reservoir studies for Suez Oil Company. In the Netherlands as Country Manager, Joerg was responsible for the development of the Hanze field including platform construction and lead the project towards first oil and a successful, incident free first year of production. In the same position in Brazil he was responsible for partnering towards a license round, winning 3 new blocks and securing the future of Maersk Oil in Brazil, leading eventually to other farm ins, and oversaw the planning of three and execution of  one exploration well which was drilled to pre-salt formations. Jim Strachan (VP & Chief Geoscientist) Mr. Jim Strachan is an international oil and gas geologist with over 30 years of professional experience. Until recently, he was Chief Geologist for Petro-Canada's International and Offshore Division. In that role he grew its international prospective acreage five-fold and increased discovered resources' potential by 600 MMboe at a finding cost of about $3/bbl through participation in more than 60 wells. Jim led a large international team including geological staff in London, Syria and Libya and was responsible for hiring, mentoring, training, assessment and career-development of the geoscience staff. He was responsible for oversight and audit of Petro-Canada's international subsurface geoscience work including assessment of acreage for licensing rounds and all geoscience aspects of field development plans. Jim developed and maintained standards for subsurface technical work including audit of well plans for international exploration and development projects. Jim has a proven oil-finder's capability coupled with vast international knowledge that has been focused on many regions including North Africa, the Middle East, Caribbean, Latin America and Northwest Europe.

36 MENA: The Team Technical: Jonathan Calvert, Technical Director
40 years of experience including 25 with Shell International, time at Veba as Head of Engineering, and 11 as an international consultant. Significant experience across a variety of countries including Africa, Middle East, South America, North Sea, Malaysia, Nigeria, Russia, Indonesia, Pakistan. Particular expertise in pre-project field development studies, evaluations & valuations to deliver cost-effective solutions for marginal fields. Economics: Roger Burrows, Commercial Director Global experience as Petroleum Economist & Negotiator. Former Director, Economics & Commercial for the Petro-Canada /Suncor and also Chief Economist for Enterprise Oil. Proven track record in international contract negotiations & evaluations in North Africa, Asia, Brazil, Eastern Europe, USA and North Sea. Expert in decision analysis & fiscal modelling in over 30 regimes. Technical: J Ebeling, Senior Geoscientist 30 years of technical experience in exploration, development, acquisition & divestment. Western Canadian, Eastern Canadian Offshore, Nigeria & Middle East. Experienced in heavy oil, horizontal drilling, EOR & A&D. Mobil, LASMO, Shell, Suncor, Calpine NGT, Pearl Exploration. Technical: Leonard J-M Julien, Senior Engineer Over 30 years Petroleum Industry experience in North America and internationally. Production engineering, reservoir engineering and operations management background Heavy Oil exploitation and production experience in Canada, Trinidad, China, Egypt and Syria. Most recently was Manager, Thermal Operations and EOR - Pearl Exploration and Production Ltd., managing the development of Pearl’s Onion Lake (Saskatchewan, Canada) and San Miguel Tar Sands (Maverick County, Texas, USA) heavy oil assets.

37 MENA: The Team Finance: Jeff Metcalf, Financial Controller
Chartered Accountant (Canada) with over 8 years of professional experience. Prior to joining MENA he was a Senior Manager in the audit practice of KPMG Calgary, primarily focused on international companies in the energy and energy services sectors. He worked with KPMG LLP in Calgary, Canada and in London, England. Jeff holds a Bachelor of Commerce (Distinction) from the University of Calgary.   Planning: Preetha Nair, Planning Manager 20 years international oil and gas experience in senior financial, commercial and technical asset management roles. Previous companies include Petro-Canada, Veba Oil & Gas, PetroFina, Suncor Energy. At Petro-Canada she held responsibilities for the International Division covering North Africa, Libya, Morocco, Tunisia, Syria, Middle East, Iran & Kazakhstan. Legal: Paul Stock, Counsel Qualified transactional lawyer with 15 years at global law firms including Clifford Chance, CMS Cameron McKenna & Orrick Herrington. Specialist in large quantum international transactions primarily gained in the oil & gas, energy and telecoms sector. Over 7 years experience in-house at upstream oil & gas production companies including Qatar Petroleum.


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