Mart Resources, Inc.: UMU-10 Well Update- Initial Flow Test Results
- 1,943 barrels of oil per day ("bopd") stabilized flow rate achieved
during clean up from the XXI sand on a reduced 28/64 choke.
- Four more tests remain to be done on sands perforated and completed
in the UMU-10 well.
CALGARY, ALBERTA -- (Marketwire) -- 01/09/13 -- 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 (together "the Co-venturers") are
pleased to announce initial flow rate test results for the UMU-10
well and an update on Umusadege field production for the month of
December 2012 and the first week of January 2013.
UMU-10 Well Test Results
As previously announced, the UMU-10 well encountered 479 feet of
gross hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb
(commingled), XVIIIa, XIX, XXb, and XXI, are to 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 are expected to access 161
feet of the total 479 feet of gross pay in the well. Five of the
UMU-10 sands (XVIIa & XVIIb (comingled) is treated as one completion
interval) have now been perforated and completed. The first extended
flow rate test has been conducted on the XXI sand, the deepest of the
sands to be tested, at a stabilized rate of 1,943 bopd during initial
well clean up.
During the test of the XXI sand, the well flowed 55.3 API gravity oil
through 3 1/2 inch tubing on a 28/64 inch choke at a flowing tubing
pressure of 1260 psi. Basic sediment and water (BS&W) was 5% with a
gas/oil ratio of approximately 588 standard cubic feet per barrel.
Four UMU-10 well tests remain, including the individual testing of
the XXb, XIX, XVIIIa, and the co-mingled testing of the XVIIa & XVIIb
sands. All sands will be initially tested on restricted choke
settings during clean up, as has been done for the XXI sand. Once all
completed sands have finished the clean-up operations, each will
undergo a multirate flow test on various choke sizes, which may
include choke sizes greater than those used for the clean-up
Further updates will be provided on these remaining targeted sands
once testing has been completed and results are available.
December 2012 Production Update
As previously reported, there was no production from the Umusadege
field in November 2012 through December 20, 2012 due to a shutdown of
the export pipeline that started on October 30, 2012. Nigerian Agip
Oil Company ("AGIP"), the pipeline operator, has advised that repairs
to the export pipeline were completed, and production from the
Umusadege field and other fields in the area (collectively the
"Cluster") began on a test basis early on December 21, 2012.
Production and deliveries into the export pipeline from the Cluster
increased to normal levels by the end of December 2012 and have
averaged 11,800 bopd during the period from January 1, 2013 to
January 8, 2013.
Total crude oil deliveries into the export pipeline from the
Umusadege field for December 2012 were approximately 92,000 bbls
before pipeline losses. Pipeline and export facility losses for
November 2012 as reported by the pipeline operator were 0 bbls, as
the pipeline was down for all of November 2012. December 2012
pipeline and export facilities losses have not yet been reported by
the pipeline operator. Pipeline and export facility losses as
reported by the pipeline operator from the beginning of the year to
end of November 2012 are approximately 13.6% of total crude
deliveries during this eleven month period.
Wade Cherwayko, CEO of Mart Resources stated: "Mart and its partners
are pleased and encouraged with the initial flow test results from
the UMU-10 well, which demonstrate that the exceptional reservoir of
the Umusadege field extends further than previously assigned. We are
looking forward to receiving results from tests of the remaining
perforated sands in the coming weeks. We are also happy to report
normalized operations for the AGIP pipeline starting in January
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 or Timea Carlsen
Except where expressly stated otherwise, all production figures set
out in this press release, including 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, there is no assurance that the Company will be able to
successfully test the XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb,
and XXI sands or commercially produce, transport or sell oil from the
UMU-10 well (or any one or more of the sands identified by the UMU-10
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. In addition, there is no
assurance that there will not be future disruptions of the AGIP
pipeline or that future repairs will not be required. Any future
disruptions will materially and adversely affect the ability of the
Company to transport, deliver and sell its crude oil production from
the Umusadege field. Statements (express or implied) concerning the
allocation of export and pipeline capacity to the Umusadege field
from their party pipeline owners, should also be viewed as forward
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 no 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
Wade Cherwayko/Dmitri Tsvetkov
+44 207 351 7937
Mart Resources, Inc.
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