Mart Resources Inc MAUXF

Q3 results

[oullins]

So much for what was expected to be a so so quarter.

A lot to digest on the numbers (production a lot higher than expected) but before I give my comments and reconciliate the numbers  I could not help notice a few things:

"Negotiations are ongoing with Agip, the Nigerian operator of the export pipeline, to increase export

capacity for the Umusadege field. Mart's management anticipates that once an agreement is reached the

Umusadege field will be allocated sufficient export pipeline capacity to accommodate production from the

existing UMU-1, UMU-5, UMU-6, UMU-7 and UMU-8 wells. Increases in export production capacity are

also anticipated to accommodate future production from the UMU-9 well. "

What about 10 an 11?  what about the horizontal re-entry in UMU4 at 9K BOPD?

"To mitigate risks relating to export pipeline capacity, Mart and its co-venturers are evaluating new export

pipeline options to provide an alternative for future production capacity. The upgrade of the central

production facility at the Umusadege field to a design capacity of approximately 30,000 bopd is

approximately 60% completed."

That would include 9, 10, 11 and UMU4

"Subsequent to September 30, 2011, the Company entered into agreements with its Umusadege coventurers

which affirmed the relationship and the responsibilities of the Company as service provider and

Midwestern as field operator and clarified tax obligations of co-venturers effective April 26, 2007. The

contractual relationships established pursuant to these agreements are now collectively referred to as the

Risk Service Agreements"


Not sure what to think about that one.

"General and Administrative Expenses

Expenses for the third quarter of 2011 were $13.1 million compared

to Q310 of $2.4. The overall increase of $10.7 million was due mainly to increases in excise taxes of $7.7

million and late tax filing fees of $3.6 million."

$3.6M!!!!  Wow!  I need to know more about that one.