Mart Resources (TSX-V:MMT, StockForum), a Calgary-based oil & gas exploration and development company operating in Nigeria, along with its co-venture partners, Midwestern Oil and Gas Company and SunTrust Oil, announced production numbers and loss percentages at their Umusadege field.
According to the news release, production at Umusadege field averaged 10,263 bopd in November. Output was attributed to a pipeline stoppage carried out by the operator, Nigerian Agip Oil Company (“NAOC”), to handle maintenance and repairs. This process lasted six days, putting Umusadege on hold. Execs also pointed out that testing operations at UMU-11 well added to the field's downtime during November.
Piping the oil to and through export facilities in October experienced 108,375 bbls or 33.3% in losses as allocated to Mart and its co-venturers. In fact, well into the Q4, 2013's monthly average of pipeline and export facility losses for the company was 25.3%.
NAOC has failed, for whatever reason, to supply the marginal field companies that produce through the Umusadege export facility (“Cluster Group”) with reasons for the losses or the irregularity of allocation of losses.
The Cluster Group requested intervention by the Department of Petroleum Resources (“DPR”) to settle the disputed loss allocations. After the meeting on November 21, 2013, officials from the Cluster Group, DPR and NAOC put together a committee to review the situation. There will also be a moratorium on pipeline and export facility losses being allocated to the Cluster Group until the issue has been resolved.
The release also noted that an independent third-party company will supply a drilling rig, prep for drilling operations and complete a water disposal well. The well is expected to boost efficiency in water production management at the field.
Mart Resources was in the news recently when the company reported initial well results at UMU-11.
Shares dropped 4.88% on the news to $1.17 per share.
Currently there are 356.6m outstanding shares with a market cap of 417.2 million.