Mart Resources, Inc.: November 2012 Operational Update and December
- Umusadege field production and deliveries into the export pipeline
were shut down during November and December 2012.
- Flooding and other factors affecting the export pipeline and export
terminal cause temporary shutdown of Umusadege field production.
CALGARY, ALBERTA -- (Marketwire) -- 12/12/12 -- Mart Resources, Inc.
(TSX VENTURE:MMT) ("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.
November 2012 Production Disruptions
Due to an ongoing shutdown of the export pipeline that started on
October 30, 2012, there was no production from the Umusadege field in
November and December 2012. At the beginning of November 2012 there
was a shipment of crude oil produced in October 2012 of 320,000
barrels of oil ("bbls"). Nigerian Agip Oil Company ("AGIP"), the
pipeline operator, has advised that while repairs to the export
pipeline have commenced, the nature of the damage has prevented a
temporary repair and that a partial replacement of the line is
required. The damaged pipeline is located in a river crossing. AGIP
advises that it is working diligently to repair the export pipeline
to enable the restoration of normal pipeline operations at the
earliest possible date.
The Brass River Export Terminal, where oil production from the
Umusadege field is shipped, continues to experience loading delays
and AGIP has extended its previous declaration of force majeure on
loadings at the Brass River Export Terminal due to flooding.
As a consequence of the foregoing, all Umusadege field production
shipped through the AGIP export pipeline continues to be shut-in
pending AGIP's repair of the export pipeline and the reopening of the
Brass River Export Terminal. Mart and its co-venturers will continue
to monitor the situation.
Pipeline and export facility losses for October 2012 as reported by
AGIP were 56,874 bbls or approximately 17.7% of total crude
deliveries (losses for September 2012 as reported by the pipeline
operator were 40,018 bbls or approximately 11.6% of total crude
ine and export facility losses as reported by AGIP
from the beginning of the year to end of October 2012 are
approximately 13.6% of total crude deliveries for that period.
UMU-10 Well Update
As previously announced, 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 have been perforated. Sands
will be tested, and completed for production. Any two of these zones
can be produced simultaneously using dual tubing string sliding
sleeve completion technology. Operations to prepare to flow test the
six targeted sands in the UMU-10 well have been progressing and is
approximately 80% completed. The long string (3 1/2 inch) completion
has been installed, and the short string (2 7/8 inch) installation is
currently underway. The sands completed in UMU-10 will access 161
feet of the total 479 feet of gross pay in the well.
Shell Export Pipeline
Mart and its co-venturers are continuing their 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. The pipes
have been manufactured and loaded on a ship heading for Nigeria and
expected to arrive in the third week of December 2012.
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 s
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
Toll Free 1-888-875-7485
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