Mart Resources, Inc.: October 2012 Operational Update and November
CALGARY, ALBERTA -- (Marketwire) -- 11/15/12 -- Mart Resources, Inc.
(TSX VENTURE:MMT) -
-- Umusadege field production averaged 10,217 barrels of oil per day
("bopd") during October 2012; average field production based on
production days was 12,669 bopd during October 2012.
-- Umusadege field net deliveries into the export pipeline were
approximately 317,000 barrels of oil ("bbls") in October 2012 before
-- Flooding and other factors affecting the export pipeline and export
terminal cause temporary shut-down of Umusadege field production.
Mart Resources, Inc. ("Mart" or the "Company") and its co-venturers,
Midwestern Oil and Gas Company Plc. (Operator of the Umusadege field)
and SunTrust Oil Company Limited are providing the following update
on Umusadege field production and drilling operations for the month
of October 2012 and production operations for the first part of
October 2012 Production Update
Umusadege field production during October 2012 averaged 10,217 bopd.
Umusadege field downtime during October 2012 was 6 days due to due to
various disruptions in the export pipeline, well testing activities,
maintenance and modification of production facilities. The average
field production based on producing days was 12,669 bopd in October
Total crude oil deliveries into the export pipeline from the
Umusadege field for October 2012 were approximately 317,000 bbls
before pipeline losses. Pipeline and export facility losses for
September 2012 as reported by the pipeline operator were 40,018 bbls
or approximately 11.6% of total crude deliveries (losses for August
2012 as reported the pipeline operator were 52,000 bbls or
approximately 13.7% of total crude deliveries). October pipeline and
export facilities losses have not yet been reported by the pipeline
operator. Pipeline and export facility losses as reported by pipeline
operator from the beginning of the year to end of September 2012 are
approximately 13.1% of total crude deliveries during this nine month
November 2012 Production Disruptions
Mart was informed of leakages on its export pipeline, causing the
pipeline operator to temporarily close the pipeline on October 30,
2012. The pipeline operator has advised that it has been unable to
inspect the export pipeline to determine the extent of damage, as
flooding due to bad weather has caused the export pipeline to be
The Brass River Export Terminal, where oil production from the
Umusadege field is shipped, has also been experiencing loading delays
due to extreme flooding in the area. As a consequence, Nigerian Agip
Oil Company Ltd. ("AGIP") has declared force majeure on loadings at
the Brass River Export Terminal until the flooding situation is
As a consequence of the foregoing, all Umusadege field production
shipped through the AGIP export pipeline has been shut in pending
AGIP's ability to access, inspect and repair the export pipeline and
rectify the flooding situation at the Brass River Export Terminal.
Mart will provide periodic operational updates on the resolution of
these matters as they become available.
UMU-10 Well Update
As previously released, the UMU-10 well encountered 479 foot gross
hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb
(commingled), XVIIIa, XIX, XXb, and XXI, will be perforated, tested,
and completed for production. Any two of these zones can be produced
simultaneously using dual string sliding sleeve completion
technology. The sands completed in UMU-10 will access 161 feet of the
total 479 feet of gross pay in the well.
Mart and its co-venturers are nearing conclusion of negotiations with
an affiliate of Royal Dutch Shell plc. ("Shell") to complete a crude
handling agreement that will enable plans to move forward to provide
a second independent export pipeline for Umusadege field production.
Mart and its co-venturers will then gain access to Shell's export
facilities and a 50-kilometer pipeline will be constructed.
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.
Investors are also welcome to contact one of the following investor
relations specialists for all corporate updates and investor
FronTier Consulting Ltd.
Mart toll free # 1-888-875-7485
Attn: Sam Grier
Note: Except where expressly stated otherwise, all production figures
set out in this press release, including barrels of oil per day
("bopd"), reflect gross Umusadege field production rather than
production attributable to Mart. Mart's share of total gross
production before taxes and royalties from the Umusadege field
fluctuates between 82.5% (before capital cost recovery) and 50%
(after capital cost recovery).
Forward-Looking Statements and Risks
Certain statements contained in this press release constitute
"forward-looking statements" as such term is used in applicable
Canadian and US securities laws. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events
or are not statements of historical fact and should be viewed as
"forward-looking statements". These statements relate to analyses and
other information that are based upon forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management. Such forward looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
In particular, past production levels and crude oil deliveries are
not necessarily indicative of future production levels and crude oil
deliveries. In addition, statements (express or implied) concerning
the allocation of export and pipeline capacity to the Umusadege field
from the third party pipeline owners, should be viewed as forward
looking statements. There is no assurance that (1) Mart and its
co-venturers will be able to obtain additional information regarding
pipeline losses; or (2) there will not be future pipeline losses and
that such losses will not be at levels greater than those referenced
In addition, there is no assurance that the drilling program for the
UMU-10 well will be successful or will successfully appraise the
target sands identified by the well. Statements (express or implied)
regarding the ability of the Company to successfully complete, test
and commercially produce, transport and sell oil from the UMU-10 well
(or any one or more of the hydrocarbon sands identified by the UMU-10
well), should all be viewed as forward-looking statements. The well
log interpretations indicating hydrocarbon-bearing sands are not
necessarily indicative of future production. There is no assurance
that reserves will be assigned to such hydrocarbon bearing sands.
No assurance can be provided on the timing of repairs to the AGIP
export pipeline, when the force majeure event on the Brass River
Export Terminal will cease or when production from the Umusadege
field will re-commence.
There can be no assurance that such forward-looking statements will
prove to be accurate as actual results and future events could vary
or differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements contained in this news release. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date the statements are made and the
Company undertakes no obligation to update forward-looking statements
and if these beliefs, estimates and opinions or other circumstances
should change, except as required by applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
Mart Resources, Inc.
London, England office
Wade Cherwayko / Dmitri Tsvetkov
+44 207 351 7937
Wade@martresources.com / firstname.lastname@example.org
Mart Resources, Inc.
Toll free: 1-888-875-7485
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