Mart Resources, Inc.: UMU-10 Well Testing Update and Umusadege Operational
CALGARY, ALBERTA -- (Marketwire) -- 03/11/13 --
-- From the three sands tested to date, the UMU-10 well has produced at a
combined rate of 5,019 barrels of oil per day ("bopd") from the XXI,
XVIIa, and XVIIb oil sands, and 609 barrels of condensate per day from
the XVIIIa gas/condensate sand.
-- 3,076 bopd stabilized flow rate achieved during maximum efficient rate
("MER") testing from the XVIIa & XVIIb oil sands (commingled) on a 32/64
-- 609 barrels per day ("bpd") of condensate, and 4.26 million cubic feet
per day ("MMcf/d") of gas stabilized flow rates achieved during MER
testing from the XVIIIa gas sand on a restricted 20/64 choke.
-- The rig has now been skidded to the last drill slot on the pad and the
rig is being set up and upgraded to prepare for the UMU-11 well. It is
anticipated that the UMU-11 well will spud during March 2013 to develop
previously appraised oil reservoirs.
-- The Operator plans to return to the UMU-10 well to carry out testing
operations on the two remaining untested oil zones following the
drilling of UMU-11.
-- The construction contract for the Umugini pipeline has been awarded, and
it is anticipated that ditching operations will commence shortly.
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 additional flow rate test
results for the UMU-10 well, and provide the following update on
Umusadege field operations and progress on the new export pipeline.
UMU-10 Well Test Results
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, have been perforated and completed for production. Any
two of these sands 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
Flow rate tests conducted during initial testing operations have now
d on the XVIIa & XVIIb (commingled) sands and the XVIIIa
sand. A stabilized flow rate of 3,076 bopd was recorded from the 33
foot (gross pay) XVIIa & XVIIb commingled sands of 49 API gravity oil
through 2 7/8 inch tubing (short string) on a 32/64 inch choke at a
flowing tubing pressure of 680 psi. Water production has reduced to
zero after cleanup with a gas/oil ratio of 125 standard cubic feet
The flow rate tests of the 18 foot (gross pay) XVIIIa gas/condensate
sand recorded a stabilized test rate of 609 bpd of condensate and
4.26 MMcf/d of gas during testing operations conducted through 2 7/8
inch tubing (short string) on a 20/64 inch choke at a flowing tubing
pressure of 2,400 psi. The well flowed gas and 53 API gravity
condensate with basic sand and water ("BS&W") of 11%.
The gas/condensate sand completed in XVIIIa is expected to be
produced after the XVIIa & XVIIb sands are fully depleted. This is
consistent with the field development strategy of the Operator, which
focuses on bringing the oil zones on production in the near term
through additional development drilling. The gas from the XVIIIa sand
is expected to be utilized as fuel for the new central processing gas
As previously announced, the first extended flow rate test was
conducted on the XXI sand, the deepest of the sands to be tested, at
a stabilized rate of 1,943 bopd during initial well testing. 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 1,260 psi. BS&W was 5% with a gas/oil ratio of
approximately 588 standard cubic feet per barrel.
The Operator plans to return to the UMU-10 well after drilling the
UMU-11 well to carry out the remaining testing operations on sands
XXb and XIX in the long string. Using a coiled tubing unit, the
multirate flow testing will then be performed on all sands completed
in the long string: XIX, XXb, and XXI.
Umusadege Field Development Activity Update
Field development is continuing with the UMU-11 well, to be drilled
from the same surface location as UMU-9 and UMU-10. The rig has been
skidded to the last drill slot on the existing drill pad and the rig
is being set up and upgraded to prepare for the UMU-11 well. The well
is expected to spud during March 2013. The oil reservoirs expected to
be completed in the UMU-11 well are the XIIb, XIIc, XVIa, and XVIb
sands, which had a combined 79 feet of oil pay in UMU-10.
During 2013, horizontal wells are anticipated to be drilled to
develop the shallow oil reservoirs in the main accumulation. Sourcing
of a second rig has begun, which, if successful, will perform the
horizontal drilling activities. Once a second rig has been leased and
mobilized, horizontal drilling is anticipated to begin with the
horizontal sidetrack wells from the existing UMU-3 and UMU-4 vertical
The new Central Production Facility is expected to be commissioned
during March 2013. This facility has been designed to handle the full
field capacity anticipated from the existing reserves, as well as the
potential for prospective resources in the field.
March 2013 Production Update
Umusadege field production has been down the first 11 days of March
2013 due to maintenance being performed on the export pipeline by the
pipeline operator. The pipeline operator has advised that the
pipeline will be operational at the beginning of next week.
Umugini Pipeline and Shell Export Pipeline
Mart and its co-venturers are proceeding with plans to provide a
second independent export pipeline for Umusadege field production.
The construction contract for the Umugini pipeline has been awarded,
and more than 90% of the pipe has arrived by truck to the Umusadege
site. It is anticipated that ditching operations will commence
shortly. The pipeline contractor will begin working from two
locations: one near the Umusadege field and one near the midpoint
between Umusadege and the Shell Export station. The Umugini pipeline
will connect the Umusadege field to the Shell Export pipeline. The
Shell export pipeline will deliver Umusadege crude to the Shell
Forcados terminal. Negotiations regarding the crude handling
agreement with the export pipeline and terminal operators are nearing
Wade Cherwayko, Chairman & CEO of Mart Resources stated: "Mart and
its partners are very pleased with the initial clean up and flow test
results from the first three zones of the UMU-10 well. We look
forward to receiving results from the remaining flow tests, and are
making preparations to begin drilling UMU-11."
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 the following investor
relations specialists for all corporate updates and investor
FronTier Consulting Ltd.
Mart toll free # 1-888-875-7485
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
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) or
successfully test the XXb or XIX sands. 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 is no assurance that Mart and its Co-venturers will be able to
secure a second drilling rig or that drilling activities will occur
within the timeframes indicated. There is no assurance that any
future wells will be successfully drilled or if drilled, will be
capable of commercial production.
There is no assurance that construction and completion of the Umugini
Pipeline referenced herein will be completed within the timeframes
indicated or at all or that Mart and its Co-venturers will be able to
enter into an acceptable crude oil handling agreement. There is no
assurance that the production capacity of the Umugini Pipeline will
be adequate for future levels of Umusadege field oil production. Any
new export pipeline will face risks generally associated with
pipeline operations in Nigeria including the risk of pipeline
disruption and line losses. 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 office
Wade Cherwayko / Dmitri Tsvetkov
+44 207 351 7937
Wade@martresources.com / email@example.com
Mart Resources, Inc.
Toll Free 1-888-875-7485
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