Mart Resources Inc MAUXF

News: OML 18 purchase completed

[wallywill]

Mart Resources, Inc.: Purchase of Onshore Nigerian Oil Mining Lease 18 Completed

20 Mar 2015 08:47 ET

Marketwire Canada

Mart Resources, Inc. (TSX:MMT) ("Mart" or the "Company") is pleased to announce that it is a member of a consortium (the "Consortium") that has acquired a 45% participating interest in Nigerian Oil Mining Lease 18 ("OML 18") and all associated assets, wells, pipelines and infrastructure from The Shell Petroleum Development Company of Nigeria Limited ("SPDC"), Total E&P Nigeria Limited, and Nigerian AGIP Oil Company Limited (collectively, the "Sellers"). The acquisition was completed pursuant to an Assignment Agreement between the Sellers and Eroton Exploration & Production Company Limited ("Eroton"), a special purpose company owned directly or indirectly by the Consortium members. The remaining 55% participating interest of OML 18 is owned by the Nigerian National Petroleum Corporation. The total purchase price for the interest was US$1.1 billion, not including acquisition costs. All approvals required for the completion of the acquisition of OML 18 have been received from the relevant authorities of the Federal Government of Nigeria.

Mart holds an indirect working interest in OML 18 of approximately 10% through its share ownership of Martwestern Energy Limited that in turn owns 50% of the shares of Eroton.

OML 18 covers an area of 1,035 square kilometers and includes the Alakiri, Awoba, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities. The Awoba field straddles into Oil Mining Lease 24. The acquired infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML 18 license area. According to SPDC, the assigned fields produced an average of approximately 14,000 gross barrels of oil equivalent per day of oil, condensate and gas during 2014.

Crude oil production from OML 18 is exported through the Bonny Crude Oil Terminal via the Nembe Creek Trunkline. Gas production from OML 18 is delivered to various power, industrial and commercial customers via the Nigeria Gas Company's pipeline.