Mart Resources, Inc. (TSX VENTURE:MMT)
-- Testing of the UMU-10 well has been successfully completed on three sands and oil has flowed to surface and testing has been concluded. The Company will release updated results once the review and evaluation of the test data is completed.-- The rig has now been skidded to the last drill slot on the pad and the rig is being set up and upgraded to prepare for the UMU-11 well.-- The Operator plans to return to the UMU-10 well after drilling the UMU- 11 well to carry out testing operations on the two remaining oil zones.-- Umusadege field production averaged 11,459 barrels of oil per day ("bopd") during January 2013; average field production based on production days was 11,841 bopd during January 2013.-- Umusadege field net deliveries into the export pipeline were approximately 355,000 barrels of oil ("bbls") in January 2013 before pipeline losses.-- Umusadege field production and deliveries into the export pipeline were shut down during November and for 24 days in December 2012. Umusadege field production averaged 2,705 bopd during December 2012; average field production based on production days was 11,980 bopd during December 2012. Umusadege field net deliveries into the export pipeline were approximately 89,000 bbls in December 2012 before pipeline losses. 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 announce additional initial flow rate test results for the UMU-10 well, updates on Umusadege field production, and an update on the progress to tie into the Shell Export Pipeline.
UMU-10 Well Test Results
The UMU-10 well encountered 479 feet of gross hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb, and XXI, have been perforated and completed for production. Any two of these zones can be produced simultaneously using dual string sliding sleeve completion technology. The sands completed in UMU-10 are expected to access 161 feet of the total 479 feet of gross pay in the well.
Flow rate tests during initial testing operations have now been completed on the XVIIa&b (commingled) sands and the XVIIIa sand and oil has flowed to surface. The results of these tests will be released once the review and evaluation of the test data is completed.
As previously announced, the first extended flow rate test was conducted on the XXI sand, the deepest of the sands to be tested, at a stabilized rate of 1,943 bopd during initial well testing. During the test of the XXI sand, the well flowed 55.3 API gravity oil through 3 1/2 inch tubing on a 28/64 inch choke at a flowing tubing pressure of 1260 psi. BS&W was 5% with a gas/oil ratio of approximately 588 standard cubic feet per barrel.
The rig has now been skidded to the last drill slot on the pad and the rig is being set up and upgraded to prepare for the UMU-11 well. The Operator plans to return to the UMU-10 well after drilling the UMU-11 well to carry out the remaining two testing operations on sands XXb and XIX in the long string. Multirate flow testing will then be performed on all sands completed in the long string: XIX, XXb, and XXI.
December 2012 and January 2013 Production Update
Umusadege field production during December 2012 averaged 2,705 bopd. Umusadege field downtime during December 2012 totaled 24 days. The average field production based on producing days was 11,980 bopd in December 2012.
Total crude oil deliveries into the export pipeline from the Umusadege field for December 2012 were approximately 89,000 bbls before pipeline losses. Pipeline and export facility losses for December 2012 as reported to Mart by the pipeline operator were 14,919 bbls or approximately 16.7% of total crude deliveries.
Umusadege field production during January 2013 averaged 11,459 bopd. Umusadege field downtime during January 2013 totaled 1 day. The average field production based on producing days was 11,841 bopd in January 2013.
Total crude oil deliveries into the export pipeline from the Umusadege field for January 2013 were approximately 367,000 bbls before pipeline losses. Pipeline and export facility losses for January 2013 have not yet been reported to Mart by the pipeline operator.
In December 2012, 600,000 bbls were lifted from the export facility on behalf of Mart and its co-venturers. Payment for these sales of oil were received in January and February 2013, and Mart and its co-venturers owe the exporter approximately 300,000 bbls as of the end of January in connection with the December 2012 liftings.
Production from the Umusadege field has been down for approximately 10 days in February 2013 due to a maintenance shutdown by the pipeline operator.
Shell Export Pipeline
Mart and its co-venturers are proceeding with plans to provide a second independent export pipeline for Umusadege field production. The pipe arrived in Nigeria in late December and has been trucked to site. Right-of-way agreements required for the construction of the pipeline have been negotiated and completed, and clearing of the pipeline right-of-way is underway and ongoing. It is anticipated that ditching operations will begin shortly, and the pipeline construction contractor will begin working from two locations: one near the Umusadege field and one near the midpoint between Umusadege and the Shell Export station. Other pipeline and facility design and specification requirements are being completed and necessary equipment is being procured and will be delivered concurrent with the pipeline construction.
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.
INVESTOR RELATIONS:
Investors are also welcome to contact one of the following investor relations specialists for all corporate updates and investor inquiries:
FronTier Consulting Ltd.Mart toll free # 1-888-875-7485Attn: Sam Grier Timea CarlsenEmail: inquiries@martresources.com
Note: Except where expressly stated otherwise, all production figures set out in this press release, including barrels of oil per day ("bopd"), reflect gross Umusadege field production rather than production attributable to Mart. Mart's share of total gross production before taxes and royalties from the Umusadege field fluctuates between 82.5% (before capital cost recovery) and 50% (after capital cost recovery).
Forward Looking Statements and Risks
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
In particular, past production levels and crude oil deliveries are not necessarily indicative of future production levels and crude oil deliveries. In addition, statements (express or implied) concerning the allocation of export and pipeline capacity to the Umusadege field from the third party pipeline owners, should be viewed as forward looking statements. There is no assurance that (1) Mart and its co-venturers will be able to obtain additional information regarding pipeline losses; or (2) there will not be future pipeline losses and that such losses will not be at levels greater than those referenced herein;
There is no assurance that the testing program for the UMU-10 well will be successful or will or will result in the successful testing of the target sands identified by the well. Statements (express or implied) regarding the ability of the Company to successfully complete, test and commercially produce, transport and sell oil from the UMU-10 well (or any one or more of the hydrocarbon sands identified by the UMU-10 well), should all be viewed as forward-looking statements. The well log interpretations indicating hydrocarbon-bearing sands are not necessarily indicative of future production. There is no assurance that reserves will be assigned to such hydrocarbon bearing sands. There is no assurance that the drilling program for the UMU-11 well will be successful or will successfully appraise the target sands of the well. Statements (express or implied) regarding the ability of the Company to successfully drill, complete and commercially produce and sell oil from the UMU-11 well should be viewed as forward-looking statements.
Negotiations regarding access to, and construction activities relating to, the Shell Export Pipeline are ongoing and there is no assurance that the Shell Export Pipeline will be completed or if completed, that the Company will get access to the Shell Export Pipeline, or if access is obtained, there is no assurance regarding the timing of commencement of deliveries of oil to the pipeline or the future volumes that will be available to the Company.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT: Mart Resources, Inc. - London, England Office Wade Cherwayko / Dmitri Tsvetkov +44 207 351 7937 Wade@martresources.com / dmitri.tsvetkov@martresources.com
Mart Resources, Inc. Investor Relations Toll Free 1-888-875-7485 www.martresources.com
SOURCE: Mart Resources, Inc.