CALGARY, ALBERTA--(Marketwired - May 21, 2015) - Mart Resources, Inc. (TSX:MMT) -
- Umusadege field production averaged approximately 8,900 barrels of oil per day ("bopd") during April 2015 based on calendar days; average field production based on production days was approximately 13,500 bopd during April 2015.
- Total production from the Umusadege field in April 2015 was approximately 266,970 barrels of oil ("bbls").
- The combined net delivery of oil from the Umusadege field through the Umugini pipeline and the Nigerian Agip Oil Company Limited ("NAOC") export pipeline totaled approximately 240,980 bbls in April 2015 before estimated combined pipeline and export facility losses, and approximately 201,280 bbls after deduction of combined pipeline and export facility losses for April 2015 as estimated by Mart.
- Aggregate calculated downtime during April 2015 totaled approximately 10.0 days.
- The side-tracking and deepening of the UMU-8 well reached total depth ("TD"), indicating 562 feet of gross hydrocarbon pay, of which 139 feet are in zones not previously included in Mart's reserves evaluation.
Mart Resources, Inc. ("Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Limited ("Midwestern", Operator of the Umusadege field) and SunTrust Oil Company Limited are providing the following updates on Umusadege field production for April 2015 and other operations.
April 2015 Aggregate Production Update
Umusadege field production during April 2015 averaged approximately 8,900 bopd resulting in total production of approximately 266,970 bbls for the month. Aggregate calculated Umusadege field downtime during April 2015 was approximately 10.0 days (based upon days with production of more than 10,000 bopd being considered to have no downtime). There were shutdowns of both the NAOC and Trans Forcados export pipelines during April 2015 due to operational interruptions for general pipeline repairs and maintenance and due to vandalism, but ongoing production from the Umusadege field was managed by the ability of the field operator to alternate production between the two pipelines. The average field production based on producing days was approximately 13,500 bopd in April 2015.
The combined net delivery of oil from the Umusadege field through the new Umugini pipeline and NAOC export pipeline totaled approximately 240,980 bbls in April 2015 before estimated pipeline and export facility losses, and approximately 201,280 bbls after deduction of combined pipeline and export facility losses estimated for April 2015 by Mart.
NAOC Export Pipeline Update
Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for April 2015 were approximately 209,180 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 pipeline and Brass River export facility losses for April 2015 will be approximately 36,520 bbls. Accordingly, Mart estimates that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for April 2015 less estimated pipeline losses will be approximately 172,660 bbls.
As previously announced, total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for March 2015 were approximately 243,600 bbls. Actual NAOC pipeline and export facility losses have not been allocated for March 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 March 2015 to be approximately 42,530 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 shut down for seven days in April 2015 due to vandalism of the ASE pipeline. The NAOC export pipeline resumed normal operations on April 11, 2015 and then was shut down or partially shut down from April 16 to 19, 2015 because of a lack of storage capacity at the Brass River export terminal due to export shipment delays.
Umugini Pipeline Update
Mart and its co-venturers have not received official reports from the operators of the Trans Forcados export pipeline or the Forcados oil export terminal stating actual oil injection volumes or pipeline and export facility losses for the Trans Forcados export system. 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 31,800 bbls in April 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 28,620 bbls for April 2015 after deduction of estimated pipeline and export facility losses.
The Umugini pipeline was down between April 4, 2015 and May 5, 2015 due to an explosion and spill that shut down the Trans Forcados pipeline. Repairs to the Trans Forcados pipeline have been completed and the system resumed normal operations on May 6, 2015.
Drilling Update
Drilling operations have concluded to side-track and deepen the UMU-8 well, including the cementing off of existing intervals and recovering the upper and lower completions. The primary purpose of the side-track was to assess the deep potential in the UMU-8 area of the field. The deep sands XVIIIa through XXI were previously found to be hydrocarbon bearing in the UMU-9, UMU-10, and UMU-13 wells. The UMU-8 side-track well reached a TD of 9,506 feet, and preliminary analysis of the wireline logs indicate that the well encountered 562 feet of gross hydrocarbon pay in 23 zones. Of the hydrocarbon pay encountered, six zones (XVIIIa, XVIIIb, XIX, XXa, XXb, XXI) with 139 feet of gross pay do not currently have any reserves allocation in the central accumulation of the field where UMU-8 is located. Pressure and fluid samples over the zones of interest are currently being taken. Once analysis of the pressure and fluid samples is concluded, plans are to run a 7 inch liner and complete the well in the appropriate intervals, followed by extensive testing.
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.