Late January productionFrom that update on FEB 2
Combined delivery of oil from the Umusadege field through the Umugini pipeline and NAOC export pipeline reached record daily gross volumes of approximately 24,000 bopd for several days in December, 2014, and a record daily volume of approximately 29,000 bopd in late January, 2015.
So the pipeline ( which Mart owns a %) could be averaging nearly 30,000 bbls a day in February quite easiy.
Mart's share is approx 65% of the oil production.
Midweastern's bid of .80 sure does look like a lowball shot in the dark. It is Nigeria however, and oil prices have collapsed. Mart picked a bad time to spend 134 MILLION $ on the next door oil field .
Mart Resources Inc. is a member of a consortium that has entered into an assignment agreement with the Shell Petroleum Development Company of Nigeria Ltd., Total E&P Nigeria Ltd. and Nigerian AGIP Oil Company Ltd. pursuant to which a special-purpose company owned directly or indirectly by the consortium members will acquire a 45-per-cent participating interest in Nigerian oil mining lease 18 and all associated assets, wells, pipelines and infrastructure. The remaining 55-per-cent participating interest of OML 18 will be retained by the Nigerian National Petroleum Corp. The acquisition is subject to numerous terms and conditions, including receipt of Nigerian government approval.
The acquisition cost of the consortium's participating interest in OML 18 will be satisfied by way of senior secured, non-recourse reserves-based financing secured against the consortium's participating interest in OML 18 and all petroleum sales revenues accruing from OML 18, and an equity contribution by the consortium members proportionate to their direct or indirect working interest in OML 18. Mart will hold an indirect working interest in OML 18 of approximately 10 per cent through its indirect ownership position in consortium SPV. In consideration for its indirect working interest in OML 18, Mart has advanced $134-million (U.S.), representing its proportionate share of the initial bid deposit paid by the consortium to the sellers, the remaining closing cash consideration, and transaction costs and initial working capital for consortium SPV. The closing cash consideration is refundable should the transaction not be completed.
As previously reported, to finance its share of the closing cash consideration, Mart has arranged to increase its existing secured term loan credit facility with Guaranty Trust Bank PLC from $175-million (U.S.) to $232.5-million (U.S.). The increased secured loan credit facility has a term of five years and bears interest at 90 days London interbank offered rate plus 4 per cent (floor of 8.25 per cent), which interest rate is unchanged from the terms of the company's existing facility with GT Bank.