MMT Update Mart Resources, Inc.: Operations and Production Update
- Umusadege field production averaged 11,563 barrels of oil per day ("bopd") during January 2014 based on calendar days; average field production based on production days was 13,151 bopd during January 2014. - Umusadege field net deliveries into the export pipeline were approximately 343,800 barrels of oil ("bbls") in January 2014 before pipeline losses. - Estimated downtime during January 2014 totaled less than four days, and there were no full down days during the month. - Construction activities on both sections of the Umugini pipeline continued during January 2014. Pipeline construction is expected to be completed in the first half of 2014.
09:00 EST Thursday, February 13, 2014
CALGARY, ALBERTA--(Marketwired - Feb. 13, 2014) - 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 providing the following updates on Umusadege field production for January 2014 and other operations.
January 2014 Production Update
Umusadege field production during January 2014 averaged 11,563 bopd. Umusadege field downtime during January 2014 was approximately four days due to minor operational interruptions, with no full down days during the month. The average field production based on producing days was 13,151 bopd in January 2014.
Total net crude oil deliveries into the export pipeline from the Umusadege field for January 2014 were approximately 343,800 bbls before pipeline losses. Pipeline and export facility losses reported by Nigerian Agip Oil Company Limited ("NAOC") and allocated to Mart and its co-venturers for December 2013 were 38,887 bbls, or 26.7% of total crude oil deliveries into the export pipeline for that month. January 2014 pipeline and export facility losses have not yet been reported by NAOC. Pipeline and export facility losses averaged 25.6% in 2013.
As previously announced, NAOC has been unable or unwilling to provide the marginal field companies that produce through the Umusadege export facility ("Cluster Group") with an explanation for the basis for the pipeline and export facility losses or for the reasons for the fluctuations in allocated pipeline losses. The Cluster Group disputed the allocation of the losses and requested the formal involvement of the Department of Petroleum Resources ("DPR"). A committee including representatives of the DPR, NAOC and the Cluster Group has been established to provide recommendations within four months in respect of the pipeline and export facilities losses. The DPR previously imposed a suspension of the allocation of pipeline and export facility losses to the Cluster Group until the pipeline loss allocation issues are resolved, and the enforcement of the suspension of allocation of losses in reports provided by NAOC is a matter to be addressed by the DPR. NAOC allocated losses for December deliveries despite the suspension and Mart is unsure as to whether NOAC will suspend loss allocations in subsequent months.
Umugini Pipeline Update
Clearing of the right of way for the last five kilometres of the first section of the Umugini pipeline has been completed and pipeline construction is ongoing. Clearing of the right of way for the second section of the Umugini pipeline has commenced, with approximately 2.5 kilometers completed. Pipe is being loaded and transported to the second section location in preparation for the start of construction. Negotiations with local communities and the Nigerian Petroleum Development Company along the second section of the Umugini pipeline are progressing and ongoing. Other equipment and materials needed to complete construction of the pipeline have arrived in Nigeria or are currently being shipped, and the group managing construction of the Umugini pipeline continue to estimate that pipeline construction will be completed in the first half of 2014. Pipeline commissioning will occur following completion of pipeline construction.