okay news? Mart Resources, Inc.: August and September 2012 Operational Update
| 11 Oct 2012 08:00 ET |  |
Marketwire Canada
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 pleased to provide an update on Umusadege field production and drilling operations for the months of August and September 2012.
August and September 2012 Production Update
Umusadege field production during August 2012 averaged 12,131 bopd and averaged 11,303 bopd during September 2012. Umusadege field downtime during August 2012 was less than one day and during September 2012 was less than three days. The average field production based on producing days was 12,535 bopd in August and 12,559 bopd during September 2012. The average daily production in August and September 2012 was slightly lower than in July 2012 due to decreased export pipeline capacity allocated to the Umusadege field.
Total crude oil deliveries into the export pipeline from the Umusadege field for August 2012 were approximately 376,000 bbls and for September 2012 were approximately 339,000 bbls before pipeline losses. Pipeline and export facility losses for August 2012 as reported to Mart by the pipeline operator were 52,000 bbls or approximately 13.7% of total crude deliveries. July 2012 reported pipeline and export facility losses were 56,000 barrels or approximately 13.8% of total crude deliveries. September pipeline and export facilities losses have not yet been reported by the pipeline operator. Pipeline and export facility losses as reported by pipeline operator from the beginning of the year to end of August 2012 are approximately 13.3% of total crude deliveries. Mart and its co-venturers are continuing to investigate this situation and are working to obtain additional information regarding such losses including assessing the accuracy of volume reconciliations as well as the accuracy of the metering and reporting processes.
UMU-10 Well Update
The UMU-10 well has reached a final total drilling depth of approximately 9,757 feet. The next phase of operations will include open hole well logging, conducting pressure surveys on prospective zones and acquiring fluid samples. Well operations will then continue with running 9 5/8 inch casing in the open hole. The primary objectives of the UMU-10 well are the oil-bearing sands identified in the 8 1/2 inch deviated hole section of the UMU-9 well. The oil-bearing sand discoveries from UMU-9 account for 170 feet of gross oil pay. Based on UMU-10 preliminary results from logging-while-drilling (LWD) technology, the target sands identified by the UMU-10 well have been similar in thickness to those encountered in the UMU-9 well. Up to four of these sands could be completed in UMU-10. The completion and testing of the UMU-10 well is expected to take approximately 45 to 60 days.
Export Pipeline
Mart and its co-venturers are nearing conclusion of negotiations with an affiliate of Royal Dutch Shell plc. ("Shell") to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. Mart and its co-venturers will then gain access to Shell's export facilities and a 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 by Q4 2013.