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MMT/MAUXF initial UMU-10 results look good!
http://finance.yahoo.com/news/mart-resources-inc-umu-10-135525858.html;_ylt=ArYEyYWEJqTLlJ28JuZcd6eiuYdG;_ylu=X3oDMTIxYmk3ZWwxBG1pdANXaWRlIFF1b3RlcyBNb2R1bGUEcG9zAzMwBHNlYwNNZWRpYVJlY2VudFF1b3Rlc1BvcnRmb2xpb3NXaWRl;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
Nothing yet, but I think I got it the day after last time, so no one needs to worry....YET!
Yeah, one of the greatest movies ever I think!
Yup, but don't forget, last quarter it took anywhere from 0-3 days to show up in some accounts, so don't everyone get their knickers in a twist if it doesn't actually show up today!
Good luck!
When do you think we see UMU-10 news??
Mart up to $1.63 in the U.S.! Any clue on UMU-10 results (when)?
MMT/MAUXF Well now that all the short term bad news is out we can go back to focusing on the medium and long term good news
Don't be so sure about that...we don't know how long it will take for them to fix the pipeline...it could be months (likely not, but can't guarantee it).
What a crappy update!!
Mart Resources, Inc.: November 2012 Operational Update and December Production Disruptions (ccnm)
CALGARY, ALBERTA--(Marketwire - Dec. 12, 2012) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Plc. (Operator of the Umusadege field) and SunTrust Oil Company Limited are providing the following update on Umusadege field production and drilling operations.
November 2012 Production Disruptions
Due to an ongoing shutdown of the export pipeline that started on October 30, 2012, there was no production from the Umusadege field in November and December 2012. At the beginning of November 2012 there was a shipment of crude oil produced in October 2012 of 320,000 barrels of oil ("bbls"). Nigerian Agip Oil Company ("AGIP"), the pipeline operator, has advised that while repairs to the export pipeline have commenced, the nature of the damage has prevented a temporary repair and that a partial replacement of the line is required. The damaged pipeline is located in a river crossing. AGIP advises that it is working diligently to repair the export pipeline to enable the restoration of normal pipeline operations at the earliest possible date.
The Brass River Export Terminal, where oil production from the Umusadege field is shipped, continues to experience loading delays and AGIP has extended its previous declaration of force majeure on loadings at the Brass River Export Terminal due to flooding.
As a consequence of the foregoing, all Umusadege field production shipped through the AGIP export pipeline continues to be shut-in pending AGIP's repair of the export pipeline and the reopening of the Brass River Export Terminal. Mart and its co-venturers will continue to monitor the situation.
Pipeline and export facility losses for October 2012 as reported by AGIP were 56,874 bbls or approximately 17.7% of total crude deliveries (losses for September 2012 as reported by the pipeline operator were 40,018 bbls or approximately 11.6% of total crude deliveries). Pipeline and export facility losses as reported by AGIP from the beginning of the year to end of October 2012 are approximately 13.6% of total crude deliveries for that period.
UMU-10 Well Update
As previously announced, the UMU-10 well encountered 479 foot gross hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb, and XXI have been perforated. Sands will be tested, and completed for production. Any two of these zones can be produced simultaneously using dual tubing string sliding sleeve completion technology. Operations to prepare to flow test the six targeted sands in the UMU-10 well have been progressing and is approximately 80% completed. The long string (3 1/2 inch) completion has been installed, and the short string (2 7/8 inch) installation is currently underway. The sands completed in UMU-10 will access 161 feet of the total 479 feet of gross pay in the well.
Shell Export Pipeline
Mart and its co-venturers are continuing their negotiations with an affiliate of Royal Dutch Shell plc. ("Shell") to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. Mart and its co-venturers will then gain access to Shell's export facilities and a 50-kilometer pipeline will be constructed. The pipes have been manufactured and loaded on a ship heading for Nigeria and expected to arrive in the third week of December 2012.
Me really hope you are right!!
Sure is quiet around here. Oullins thinks UMU-10 starts flowing any day now...let's hope he's right!
I think the positive jump in MMT is more in reaction to the update on the Shell pipeline date (from Cormark):
Cormark update on MMT
Investment Thesis:
Mart Resources provides unique exposure to an established light oil field
onshore Nigeria, expected to drive low-risk production, cash flow and reserves
growth near term. With a strong balance sheet, $0.20 dividend and expected
growth, Mart should appeal to value, growth and income investors alike.
Highlights:
• Event
Yesterday, Mart Resources updated operations in Nigeria.
• Details
Umusadege field volumes averaged 10,217 B/d (12,669 B/d on a producing
day basis) in October due to six days of outages in the month while pipeline
losses in September were reported at 11.6% (a material decrease from 18% in
Q2/12). Agip Oil Company (Agip) shut-in the Kwale-Akri pipeline on October
30 due to leakages that cannot be repaired given flooding in the area. We
have not adjusted our estimates until greater clarity is available on the timing
of repairs and the ultimate impact on Mart’s share of production. A pipeline
deal with Shell and results from UMU-10 remain material potential positive
catalysts near term.
• Recommendation
We continue to view Mart as one of the most attractive names in our universe
with material catalysts expected near term. We believe the current shut-in
provides investors with a unique and temporary opportunity to acquire the
Company’s stock at very attractive metrics, especially given its 13.3% yield.
We are maintaining our Top Pick rating and $2.50 target on Mart.
Operational Update:
• Yesterday, Mart reported October Umusadege volumes and announced that the Nigerian Agip Oil
Company had temporarily shut-in the Kwale-Akri pipeline.
• Field production from the Umusadege field averaged 10,217 B/d in October due to six days of
disruptions to the export pipeline, well testing and production facility maintenance.
• Excluding the disruptions, the field averaged 12,699 B/d on a producing day basis compared to the
12,350 B/d we had modelled for Q4/12.
• Pipeline losses for September amounted to ~40.1 MB or 11.6% of total crude deliveries. This
compares favourably to the 13.7% lost in August and the 18% reported for Q2/12. October losses
have yet to be reported by Agip to producers shipping on the line.
• Due to leakages on the Kwale-Akri pipeline to the Brass River Export Terminal, the operator of the
line (Agip) temporarily shut-in the line on October 30, 2012. Flooding in the Niger Delta that some
have referred to as the worst in 50 years has so far prevented Agip from accessing and repairing the
leak. As such, limited volumes have been delivered for the month to date.
• The extreme flooding has also caused Agip to declare force majeure on November 9 at the Brass
River Terminal where the company’s crude is loaded. We believe that almost all the Company’s
October volumes were exported before the force majeure was declared.
• There have been no indications of how long the shut-in will last or when force majeure could be lifted
at Brass River. While leakages are typically repaired within a few days, the extensive flooding
remains an unknown when estimating a date when deliveries may resume.
• Several other majors in Nigeria (Shell, Total, ExxonMobil and Chevron) also declared force majeure
at various fields and terminals due to the flooding.
We continue to expect the announcement of a pipeline deal with Shell to be announced in the near term.
An agreement with Shell would materially increase takeaway capacity from Umusadege and provide an
alternative export route for the Company. With completion of a stub pipeline to Shell’s export line by May
or June 2013, Mart would be able to export volumes from either Brass River or Forcados.
• We also expect test results from the Company’s UMU-10 well before year-end. Recall that UMU-10
encountered 479 feet of gross pay in 20 sands with 6 of these sands (XVIIa, XVIIb, XVIIIa, XIX, XXb
and XXI) being perforated, tested and completed for production. Any two zones perforated will be
able to produce through dual strings where completed. The sands completed will access 161 feet of
pay and will, if successful, (we believe) result in material new reserves for the Company.
Guidance/Estimates:
• With no clarity yet on when volumes may resume through the Kwale-Akri line, when force majeure
may be lifted at Brass River or what the ultimate impact will be on the Company, we have not
adjusted our 2012 or 2013 estimates at present.
• Based on actual volumes for October and assuming a three week shut-in of the Kwale-Akri pipeline
(currently uncertain), our Q4/12 estimate of 7,148 B/d would decrease to ~4,900 B/d and lower our
2012 estimates to ~5,540 B/d (from the current 6,100 B/d), though we would hasten to remind
investors that the cost recovery mechanism between Mart and its partners in the Umusadege field
would likely result in a higher share of actual volumes being allocated to Mart, somewhat moderating
the impact of the outage.
• We would also note that our 2013 volumes would likely not be affected by the shut-in and currently do
not incorporate an increase in field volumes that would accompany a pipeline deal with Shell.
Financial Flexibility:
• At the end of Q2/12, Mart had $41.2 MM in net positive working capital. We expect the Company to
exit 2012 with $51.4 MM and 2013 with $76.8 MM of working capital (based on current estimates
exclusive of the impact of the current shut-ins).
• We believe that the Company’s current cash balance will ensure the current dividend is unaffected by
the shut-in.
Valuation:
• Based on yesterday’s closing price of $1.50, Mart is trading at 0.7x its NAV and 2.8x EV/DACF based
on our (currently) unchanged estimates.
• Our risked NPV for Mart is unchanged at $2.40 and remains the basis for our unchanged $2.50 target
price.
Conclusion:
• While November production will be materially and negatively impacted by the leakages in the Kwale-
Akri line and force majeure at Brass River, our very positive thesis on the Company remains
unchanged.
• An agreement with Shell and results from the UMU-10 well remain potential positive catalysts for the
stock before year-end. An agreement with Shell would position the Company to materially increase
volumes from mid-2013 and provide Mart with an alternative export route.• We remain confident that the Company’s attractive dividend will be unaffected by the current shut-ins.
As such, the current weakness in the stock provides investors with a temporary opportunity to build or
increase a position in Mart Resources before production and cash flow increases materially next year.
• We are maintaining our $2.50 target price and Top Pick rating on Mart.
Porto news on ALC-1 should be here any moment...I wonder if they'll halt it?
Two words; reserve growth.
I think Mart is an easy double for next year!! $4-$5 coming by end of '13.
I'm with you on Porto. We should hear next week one way or the other. I'm betting on a hit with ALC-1!
Thanks. Glad it's not my computer.
<OT> Anyone else having problems getting to the IV boards??
Sweet. Good for him. I met him last year...good guy! Hopefully he writes up another update on Porto after this PR.
Any idea what his average entry is/was for Porto??
PEC.V/PNRXF now up almost 40%!!!
PEC.V/PNRXF up about 30% on big volume.
Sure did. It was very encouraging (IMO).
I am as well. I like the odds at this price, though this news release may make them not so cheap by the time the market opens. Great management team (mostly Devon folks) in a great govermental regime (very pro-business).
Very positive Porto Energy interim update:
http://finance.yahoo.com/news/porto-energy-provides-operational-alc-110000851.html
Sounds like they might have found both gas and oil!!
<OT> Martguy, any update on Mart/UMU-10?
Thanks
Big volume on Porto (PEC.V/PNRXF). I'm guessing they are starting to get a good look at the ALC-1 results (though they aren't due for another 3 weeks or so), and that it's likely positive.
Short term Porto (PEC.V/PNRXF) catalysts:
1. DPEP approval for its offshore acreage due by the end of September
2. ALC-1 oil well results due by end of October
3. Lias Phase 1 gas results of 19 drilled wells due by end of October
4. Based on results of #3 (assuming they are positive), would expect JV partners to commit to Phase II, the JV would then drill two proof-of-concept wells that will be mechanically capable of production, again likely by end of October (the decision, not the drilling of the wells)
Lots of opportunity here.
me say///"come back Martguy"
Sure is quiet around here. Sure could use that UMU-10 news!
PNRXF - nice gain today. Can't wait for the results from Alcobaça
Shoot dat peece a chit!!
Yup, and stock down a nickel like it "should be".
Last post meant to be PEC.V of course...
Porto Energy - PEV.V - I wrote to them inquiring about the latest article, and what specifically it meant. Here is their reply:
I believe the title was "Mohave to start Portugal oil production project within months". That being said, we have already begun a stratigraphic well program to test the Lias interval. We expect that our JV partners will consider moving into Phase II in October/November whereby we anticipate drilling 2 proof of concept wells for approximately $12 million. This is likely the "production project" Reuters is referring to. The JV partners will carry Mohave through this phase if they decide to continue into Phase II. The important take away is that in August, Mohave was required to relinquish a percentage of its acreage on its 5 original concession. Now we have 5 additional years in which to explore without relinquishment of our onshore acreage. The following link provides our official press release on the matter:
http://www.portoenergy.com/files/newsreleases/Sept%204%202012%20-%20News%20Release.pdf
Kind Regards,
IR
I have never seen or heard of this person.
PEC.V news
http://www.reuters.com/article/2012/09/04/portugal-oil-idUSL6E8K4HVM20120904?feedType=RSS&feedName=financialsSector&rpc=43
This isn't the same well announced the other day, is it?
Thanks
Wade finally gets some help:
http://finance.yahoo.com/news/mart-resources-inc-appointment-cfo-122908325.html
PEC.V Porto receives government approval to proceed with program:
http://finance.yahoo.com/news/porto-energy-receives-approval-development-110000612.html