MAUXF: Mart Resources outlook.
OUTLOOK AND OPERATIONS UPDATE:
The NRG 201 drilling rig has been moved to the UMU-10 slot on the current drilling pad and the rig has been prepared for drilling. There has been a delay in the receipt of some long lead time items and accordingly it is currently anticipated that the UMU-10 well will be spudded before the end of June 2012. The primary objectives of the UMU-10 well will be the oil-bearing sands identified in the 8 1/2 inch deviated hole section of the UMU-9 well.
Umusadege field production during the month of April averaged 12,206 bopd. Umusadege field downtime during April 2012 was less than one half of one day. Total oil deliveries into the export storage tanks from the Umusadege field for the month of April, adjusted for estimated pipeline losses, were approximately 366,000 bbls.
Mart and its co-venturers are continuing discussions with an affiliate of Royal Dutch Shell plc, ("Shell") to provide a second independent export pipeline for Umusadege field production. If Mart and its co-venturers gain access to Shell's export facilities, a new 50 kilometer pipeline will be constructed. Construction of the pipeline connecting the Umusadege field to Shell's export facilities is expected to be completed and in service in approximately one year.
The upgrade of the existing central production facility at the Umusadege field to a design capacity of approximately 30,000 bopd is expected to be completed by the end of Q312.
CHAIRMAN'S COMMENT:
Wade Cherwayko, Chairman & CEO of Mart said, "We are very pleased to report strong financial and operating results for Q112 with $38.2 million of net income, which amounts to $0.11 per share. This reflects the growth of the Umusadege field's production capacity. The Company continues to work towards maximizing production and efficiency, and significant steps have been taken towards building an additional export pipeline to enable us to exploit the potential of the Umusadege field. Increasing total pipeline capacity is expected to substantially increase production and cash flow."
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