MAUXF...Mart Resources, Inc.: Operations and Production Update
- Umusadege field
production averaged 10,800 barrels of oil per day ("bopd") during July 2013
based on calendar days; average field production based on production days was
13,200 bopd during July 2013, which is the highest average daily production rate
for a calendar month based on production days realized from the Umusadege field.
- Umusadege field net deliveries into the export pipeline were approximately
347,100 barrels of oil ("bbls") in July 2013 before pipeline losses. - Conductor
pipe for UMU-11 well has been driven to a final depth of 330 feet and
preparation to spud the well is currently underway. - Umugini pipeline
construction has been delayed due to ongoing heavy rains in the area, and
completion of construction is now expected to be in the first quarter of 2014.
CALGARY, ALBERTA, Aug 12, 2013 (Marketwired via COMTEX) -- 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 updates on Umusadege field production for
July 2013, the UMU-11 well, status of a second drilling rig, and Umugini
pipeline construction.
July 2013 Production Update
Umusadege field production during July 2013 averaged 10,800 bopd. Umusadege
field downtime during July 2013 was approximately 4.5 days due to sporadic
shutdowns required for commissioning and testing of the new central processing
facility and operations connected to preparation for drilling of the UMU-11
well. The average field production based on producing days was 13,200 bopd in
July 2013, which is the highest average daily production rate for a calendar
month based on production days realized from the Umusadege field.
Total net crude oil deliveries into the export pipeline from the Umusadege field
for July 2013 were approximately 347,100 bbls before pipeline losses. Pipeline
and export facility losses for May 2013, June 2013 and for July 2013 have not
yet been reported by the export pipeline operator, Nigerian Agip Oil Company
("Agip"). In the past, Agip has reported pipeline and export facility losses one
month after the final reporting of each month's injection totals, but for the
past two months the pipeline losses have not been reported. Mart and its
co-venturers have requested the loss information from Agip and will release this
information as soon as it is received.
As a result of negotiations with Agip, the Umusadege field has been allocated an
additional pipeline reserved production capacity of 4,500 bopd. An increase in
oil shipments from the Umusadege field will be achieved after more powerful
pumps are obtained and installed by Agip.
UMU-11 Well Update
The drilling rig was skidded ahead, and new 20-inch conductor pipe has been pile
driven to a final depth of 330 feet. The conductor pipe will be cleaned out and
secured, and drilling operations are expected to commence shortly thereafter.
After completion of the UMU-11 well, an exploration/appraisal well is planned to
be drilled on the East exploration structure.
Second Drilling Rig
A tender for a second drilling rig was successfully completed, and after site
preparation the second drilling rig is expected to start drilling a water
disposal well in September 2013. After completion of the water disposal well,
the drilling rig will move to the UMU-4 location to drill a re-entry horizontal
development well. Mart and its co-venturers plan to drill several additional
horizontal wells in the Umusadege field.
Umugini Pipeline Construction Update
As previously reported, construction of the Umugini pipeline has been completed
from the location near the Umusadege field to a point approximately 17
kilometers into the 51-kilometer pipeline. Construction operations are being
delayed due to weather conditions and heavy rains in the area that required the
construction contractor to shut down. It is now expected that pipeline
construction will be completed in the first quarter of 2014. As previously
announced, the pipeline has two segments. The first segment is from the
Umusadege field south to the Ogini flow station on OML 26. This section is 23
kilometers in length and is where the 17 kilometers of pipeline construction has
been completed. The second segment is from the Ogini flow station west to the
Eriemu flow station. This section of the pipeline will be constructed along an
existing right of way and will be twinning the existing pipeline currently
operating between the Ogini flow station and the Eriemu flow station. The
Umugini pipeline will provide a second independent export pipeline for Umusadege
field production. The Umugini pipeline's gross transportation capacity will be
approximately 45,000 barrels per day and it will connect the Umusadege field to
the Trans Forcados export pipeline. The Trans Forcados export pipeline will
deliver crude oil from Umusadege field to the Forcados export terminal operated
by Shell. Negotiations regarding the crude handling agreement with the export
pipeline and terminal operators are nearing completion.
Mart and its co-venturers continue to evaluate other opportunities in Nigeria
including divestments being made by major oil companies and other marginal
fields.
Additional information regarding Mart is available on the Company's website at
www.martresources.com and under the Company's profile on SEDAR at www.sedar.com.
Except where expressly stated otherwise, all production figures set out in this
press release, including bopd, reflect gross Umusadege field production rather
than production attributable to Mart. Mart's share of total gross production
before taxes and royalties from the Umusadege field fluctuates between 82.5%
(before capital cost recovery) and 50% (after capital cost recovery).
Forward Looking Statements and Risks
Certain statements contained in this press release constitute "forward-looking
statements" as such term is used in applicable Canadian and US securities laws.
Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact and should be viewed as
"forward-looking statements". These statements relate to analyses and other
information that are based upon forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Such forward looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
In particular, there is no assurance that there will not be future disruptions
of the AGIP pipeline or that future repairs will not be required. Any future
disruptions will materially and adversely affect the ability of the Company to
transport, deliver and sell its crude oil production from the Umusadege field.
Statements (express or implied) concerning the allocation of export and pipeline
capacity to the Umusadege field from their third party pipeline owners, should
also be viewed as forward looking statements.
There is no assurance that the UMU-11 well will be spudded by the date forecast.
There is also no assurance that the drilling of UMU-11 will meet the stated
objectives.
There is no assurance that construction and completion of the Umugini Pipeline
referenced herein will be completed within the timeframes indicated or at all or
that Mart and its Co-venturers will be able to enter into an acceptable crude
oil handling agreement. There is no assurance that the production capacity of
the Umugini Pipeline will be adequate for future levels of Umusadege field oil
production. Any new export pipeline will face risks generally associated with
pipeline operations in Nigeria including the risk of pipeline disruption and
line losses. There can be no assurance that such forward-looking statements will
prove to be accurate as actual results and future events could vary or differ
materially from those anticipated in such statements. Accordingly, readers
should no place undue reliance on forward-looking statements contained in this
news release. The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
There can be no assurance that such forward-looking statements will prove to be
accurate as actual results and future events could vary or differ materially
from those anticipated in such statements. Accordingly, readers should no place
undue reliance on forward-looking statements contained in this news release. The
forward-looking statements contained herein are expressly qualified by this
cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Company undertakes no
obligation to update forward-looking statements and if these beliefs, estimates
and opinions or other circumstances should change, except as required by
applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT: Mart's London, England Office Wade
Cherwayko / Dmitri Tsvetkov +44 207 351 7937 Wade@martresources.com /
dmitri.tsvetkov@martresources.com
Canada Sam Grier 403-270-1841 or toll free 1-888-875-7485
SOURCE: Mart Resources, Inc.
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INDUSTRY KEYWORD: Energy and Utilities\Oil and Gas
SUBJECT CODE: OIL/GAS EXPLORATION UPDATE
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