Mart Resources, Inc.: Operations and Production Update
- Umusadege field production averaged 9,235 barrels of oil per day ("bopd") during August 2013 based on calendar days; average field production based on production days was 12,085 bopd during August 2013. - Umusadege field net deliveries into the export pipeline were approximately 293,600 barrels of oil ("bbls") in August 2013 before pipeline losses. - The UMU-11 well is drilling ahead in the 12 1/4-inch section and is currently at a depth of 7,464 feet. The 16-inch section has been cemented with 13 3/8 inch casing set at 5,000 feet. - Pipeline and export facility losses have averaged 19% in 2013, including an average of 27% for May, June and July 2013 as reported by the export pipeline operator, Nigerian Agip Oil Company ("Agip"). Mart and its co-venturers have requested additional data regarding the increase in the rate of pipeline and export facility losses and will provide additional information as it becomes available.
CALGARY, ALBERTA--(Marketwired - Sep 11, 2013) - 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 August 2013 and the drilling of the UMU-11 well.
August 2013 Production Update
Umusadege field production during August 2013 averaged 9,235 bopd. Umusadege field downtime during August 2013 was approximately 7.5 days due to shutdowns required for, operations connected to preparation and drilling of the UMU-11 well, testing of the new central processing facility, and effects of pipeline space constraints put in place by Agip for several days at the end of the month. The average field production based on producing days was 12,085 bopd in August 2013.
Total net crude oil deliveries into the export pipeline from the Umusadege field for August 2013 were approximately 293,600 bbls before pipeline losses. Pipeline and export facility losses for May 2013, June 2013 and for July 2013 have now been reported by Agip. The pipeline and export facility losses for each month were as follows: May 2013 - 82,104 bbls (25%), June 2013 - 91,510 bbls (30%), and July 2013 - 90,788 bbls (26%). Pipeline and export facility losses have averaged 19% for the first seven months of 2013. Mart and its co-venturers have requested additional data regarding the increase in the rate of pipeline and export facility losses and will provide additional information as it becomes available. August 2013 pipeline and export facility losses have not yet been reported by Agip.
UMU-11 Well Update
The UMU-11 well commenced drilling operations on August 14, 2013 and is currently at a depth of 7,464 feet in the 12 1/4-inch hole section. The 16-inch hole section was successfully cemented with 13 3/8 casing to a depth of 5,000 feet. The 12 1/4-inch section will be drilled to a total measured depth of approximately 8,700 feet, followed by running a 9 5/8-inch casing.
The main objectives for the UMU-11 well are to appraise and produce proven oil reservoirs encountered but not completed in the UMU-9 and UMU-10 wells. These sands (XIIb, XIIc, XVIa, and XVIb) were previously logged and sampled. The UMU-11 objective is to test four of these oil-bearing sands, and if successful, complete these sands for production.
