RE:RE:RE:RE:RE:RE:RE:No Incentive I think OML 18 has more value than Most think
even at these low oil prices
when our 10% was purchased for 124 million in march it was producing 14,000 bopd
at the last confrence call it had grown to 24,000 bopd
and suggested it was stil ramping up increases bopd
to top it off yes I also understand hedged at 95 bucks per barrel for 3 years
I believe most would gladly pay the March price maybe a premium as bopd keep growing
also bought pipeline,flow stations ect
Great asset imo
Mart consortium acquires 45% of Nigerian oil lease
2015-03-20 08:59 ET - News Release
Mr. Dmitri Tsvetkov reports
MART RESOURCES, INC.: PURCHASE OF ONSHORE NIGERIAN OIL MINING LEASE 18 COMPLETED
Mart Resources Inc. is a member of a consortium that has acquired a 45-per-cent 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 Ltd. (SPDC), Total E&P Nigeria Ltd. and Nigerian AGIP Oil Co. Ltd. The acquisition was completed pursuant to an assignment agreement between the sellers and Eroton Exploration & Production Co. Ltd., a special purpose company owned directly or indirectly by the consortium members. The remaining 55-per-cent participating interest of OML 18 is owned by the Nigerian National Petroleum Corp. The total purchase price for the interest was $1.1-billion (U.S.), 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 per cent through its share ownership of Martwestern Energy Ltd. that in turn owns 50 per cent of the shares of Eroton.
OML 18 covers an area of 1,035 square kilometres 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 licence 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.