update
Mart's Umusadege produces 572,200 bbl in July
2015-08-25 08:40 ET - News Release
Mr. Sam Grier reports
MART RESOURCES, INC.: OPERATIONS AND JULY 2015 PRODUCTION UPDATE
Mart Resources Inc. and its co-venturers, Midwestern Oil and Gas Co. Ltd. (operator of the Umusadege field) and SunTrust Oil Co. Ltd., are providing the following updates on Umusadege field production for July, 2015, and other operations.
July 2015 Aggregate Production Update
Umusadege field production during July 2015 averaged approximately 18,460 bopd resulting in total production of approximately 572,200 bbls for the month. Aggregate calculated Umusadege field downtime during July 2015 was less than one day (based upon days with production of more than 10,000 bopd being considered to have no downtime). There were shutdowns of the NAOC export pipeline during July 2015 due to operational interruptions for general pipeline maintenance and repairs due to vandalism, but ongoing production from the Umusadege field was managed by the ability of the field operator to alternate production between the Trans Forcados and NAOC export pipelines. The average field production based on producing days was approximately 18,940 bopd in July 2015.
The combined net delivery of oil from the Umusadege field through the Umugini pipeline and NAOC export pipeline totaled approximately 558,500 bbls in July 2015 before estimated pipeline and export facility losses, and approximately 497,950 bbls after deduction of combined pipeline and export facility losses estimated for July 2015 by Mart.
NAOC Export Pipeline Update
Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for July 2015 were approximately 63,000 bbls before pipeline losses. Based upon the 12-month rolling average rate of pipeline and export facility losses from December 2013 to November 2014 of 17.46%, Mart estimates NAOC export pipeline and Brass River export facility losses for July 2015 will be approximately 11,000 bbls. Accordingly, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for July 2015 less estimated pipeline losses will be approximately 52,000 bbls.
As previously announced, total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for June 2015 were approximately 108,200 bbls. Actual NAOC pipeline and export facility losses have not been allocated for June 2015 because allocation was suspended beginning in December 2014 by the Department of Petroleum Resources pending an approved loss computation formula. Mart previously estimated pipeline and export facility losses for June 2015 to be approximately 18,890 bbls, based upon the 12-month rolling average rate of pipeline and export facility losses of 17.46% between December 2013 and November 2014.
The NAOC export pipeline was down from July 1, 2015 until July 10, 2015 due to an accident at a pipeline station, and was down or partially down for the remainder of July 2015 because of leakages and repairs to the pipeline and due to lack of storage capacity at the Brass River export terminal due to export shipment delays.
Trans Forcados and Umugini Pipeline Update
Mart and its co-venturers have received an unreconciled report from the operators of the Trans Forcados export pipeline and the Forcados oil export terminal that includes only gross oil injection volumes and estimated pipeline and export facility losses for the group that Mart and its co-venturers are part of in the Trans Forcados export system. Mart and its co-venturers have requested additional and more complete information and reports from the operators of the Trans Forcados export pipeline and the Forcados oil export terminal in order to accurately reconcile volumes and any attributed pipeline losses for the period that the Company's production has been injected into the Trans Forcados pipeline. Until more accurate and complete information and reports can be obtained from the operators of the Trans Forcados export pipeline and the Forcados oil export terminal, Mart will continue to estimate such pipeline losses. Based upon Mart's internal production and facility data, the Company estimates that Umusadege field deliveries into the Trans Forcados export pipeline connected to the Forcados oil export terminal were approximately 495,500 bbls in July 2015. Based upon historic pipeline losses encountered by other exploration and production companies utilizing the Trans Forcados export system, Mart estimates pipeline and export facility losses of 10% of crude oil deliveries, resulting in estimated Umusadege field deliveries of approximately 445,950 bbls for July 2015 after deduction of estimated pipeline and export facility losses.
The Umugini pipeline experienced no full down days in July 2015.
Drilling and Testing Update
As previously announced, the UMU-14 horizontal ("UMU-14H") well was spudded on July 12, 2015 and was drilled to target the oil-bearing VIII sand. This is the second horizontal well targeting the VIII sand, the first being UMU-12 horizontal well drilled in 2014 that targeted the VIII sand in the central area of the Umusadege field. The UMU-14H well was drilled from an existing drilling pad location and directionally steered to access the VIII sand in the central-east area of the Umusadege field.
The UMU-14H well was successfully landed in the VIII sand and the horizontal section drilled to a total horizontal length of 1,000 feet. The well reached total depth of 9,280 feet (measured depth) on August 10, 2015. Completion operations are currently underway, which will be followed by initial clean up and flow testing.
After drilling and completion of the UMU-14H well, the operator plans to conduct multi-rate production tests and bottom hole pressure buildup surveys for the completed intervals of both the UMU-8 and UMU-14 wells.
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.