Mart Resources Inc MAUXF

Oando puts a well on production close to us

[Fernando2010]

I understand (from a post by Oiljack in Investor Village) that this well is close to our Umu West prospect, significantly contributing to de-risk it

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Oando Energy Resources Brings Ebendo-4 Well on Production at 2,000 bopd

CALGARY, Alberta, October 22, 2012 /PRNewswire/ --

Oando Energy Resources Inc. ("OER" or the "Company") (TSX: OER), today announced that the Ebendo-4 well, in which OER has a 42.75% working interest, has been brought on production at 2,000 bopd (855 bopd net to OER).

"Bringing the EB-4 well on stream boosts the combined gross production from the Ebendo field significantly to 4,000 bopd," said Pade Durotoye, CEO of OER. "Following the success of the EB-4 well, we continue to advance our Ebendo drilling program with our EB-5 well that is aimed at appraising the untested hydrocarbons contained within the five levels of hydrocarbon bearing sands that were encountered during the EB-4 drilling program."

The production increase of 2,000 bopd (gross) is attributable to the tie in of the EB-4 well that was recently drilled and completed as a dual string producer, as announced on August 20, 2012. The two strings have a total combined production capacity exceeding 2,000 bopd (gross), with the short string having the capacity for producing in excess of 1,000 bopd (gross) and the long string having the capacity for producing the balance. As a result of the increase in production, the Ebendo Field currently produces 4,000 bopd (gross) from the two producing wells, EB-1 and EB-4.

The field production capacity will be limited at 4,000 bopd (gross) for good reservoir management, whilst the field under goes further appraisal. Of the field's total gross production of 4,000 bopd, 1,710 bopd is attributable to OER.

OER owns a 42.75% non-operating interest in the Ebendo (OML-56) field.

[Greenchips]

Yes, quite close and OER both delivers into the same AGIP facility and is partnering with MMT on the new pipeline. OML 56 is a very prolific productive area with multiple potential horizons.

[radcat]

"and is partnering with MMT on the new pipeline".    I did not know that. This is the first time I am reading this. Would you please publish a doc stating this claim. I thought this line was 15% Mart / 85% Midwestern & Suntrust. Did Mart's partners bi-pass us and sell a piece of their 85% stake to Oando? I don't think so. We might allow you

[Greenchips]

I do not have ready access to such a doc but it is widely known in the oil patch in Nigeria that OER are involved with this as they also face the same pipeline capacity constraints. The parent company of OER, Oando PLC has $4 billion annual revenues and is very influential in Nigeria, it is a plus to have OER as a partner even although they are not well known here yet.

[oullins]

Radcat, I do not want to go back trough my posts but I think I mentioned that Oando was a pipeline partner some time ago.  I knew about it anyway.  Oando injects into the AGIP pipeline using the Umusadege entry point. My understanding is that the largest shareholder of the pipeline will be the local Nigerian government just like the AGIP pipeline.  Sun and MidWestern are

[Fernando2010]

does anyone here know the percentage/volume of "pipeline losses" reported by Oando in the AGIP pipeline? thanks in advance Fernando

[radcat]

From Cormark Securities, July 13, 2012. Page 18.    15% Mart - 85% Midwestern/Suntrust.  Don't see any mention of Oando or any others being part owners.  Let me know if there is other info. to the contrary.  Seem to remember Wade mentioning he would have liked more than 15%.     Radcat        The

[BlindBat_1]

Radcat, I do not want to go back trough my posts but I think I mentioned that Oando was a pipeline partner some time ago. I knew about it anyway. Oando injects into the AGIP pipeline using the Umusadege entry point. My understanding is that the largest shareholder of the pipeline will be the local Nigerian government just like the AGIP pipeline. Sun and MidWestern are in it but I have no idea

[Greenchips]

OER has not commented yet, maybe in their Q3?

[BlindBat_1]

The parent is Oando and is a multi billion revenue generating company forecast to be about $3.5 Billion US dollars this year. Oando Energy is the new Company created through a RTO with Exile. As it pertains to DEBT, when Oando Energey ( OER), went through the RTO the parent company forgaved in excess of $500 Millions wort of debt, as such OER is floating technically with 60 some millions $ in

[Greenchips]

Very useful summary BlindBat, a couple of comments. The Oando driling rigs are swamp rigs so they are not being used by OER. Qua Ibo will be taken on by OER at Oando actual cost which is effectively drilling plus payments to Mart and the JV partner which are less than $3 million I believe, total will be nowhere near $100 million.  

[BlindBat_1]

Very useful summary BlindBat, a couple of comments. The Oando driling rigs are swamp rigs so they are not being used by OER. Qua Ibo will be taken on by OER at Oando actual cost which is effectively drilling plus payments to Mart and the JV partner which are less than $3 million I believe, total will be nowhere near $100 million. ===================   I'm no expert in poking rig and would