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) ("Midwestern") and Suntrust Oil Company Nigeria Limited ("Suntrust"), are
pleased to report that drilling operations have commenced on the UMU-8
development well located in the Umusadege field, onshore Nigeria and provide the
following production update.


UMU-8 WELL:

The UMU-8 development well commenced drilling operations on June 9th, 2011 and
is currently drilling ahead at 1,010 feet. The UMU-8 well is being directionally
drilled from the same three-slot drilling pad as the recently drilled and
completed UMU-6 and UMU-7 wells. It is estimated that the drilling phase will
take 40 to 50 days. 


PRODUCTION UPDATE:

Aggregate production from the Umusadege field averaged 10,525 barrels oil per
day ("bopd") in May 2011. The Umusadege field was shut down for a total of 3
days during the month of May to allow rig skidding to the UMU-8 location and the
UMU-7 well tie-in to production facilities. 


CHAIRMAN'S COMMENT:

Wade Cherwayko, Chairman and CEO of Mart Resources, Inc. said, "The increased
production level at the Umusadege field is a significant milestone, as
production has now increased dramatically from the 2010 average of 3,938 bopd.
With drilling activity commencing on UMU-8 well, we also look forward to further
increases in production capacity in the near term."


ABOUT MART RESOURCES:

Mart Resources Inc. is an independent, international petroleum company focused
on drilling, developing and producing oil and gas from proven petroleum
properties in Nigeria, West Africa. The Company is currently producing and
developing the Umusadege field along with Midwestern Oil and Gas Co. Plc (the
Operator of the field) and SunTrust Oil Company Nigeria Limited. Mart also owns
two land drilling rigs, has strong local relationships and experience and is
evaluating additional proven undeveloped opportunities in Nigeria.


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, statements (express or implied) concerning the timing or success
of completion operations on the UMU-8 well, the ability of the Company to
successfully complete and commercially produce, transport and sell oil from the
UMU-8 well (or any one or more of the hydrocarbon sands identified by the UMU-8
well), the ability of the Company to successfully drill other wells on the
Umusadege field and the ability to of the Company to fund future drilling
operations should all be viewed as forward-looking statements. The current flow
rates are not necessarily indicative of future production rates and may change
materially as the field stabilizes. 


In addition, statements (express or implied) concerning the allocation of export
and pipeline capacity to the Umusadege field from the third party pipeline
owners, including the assessment by the Company of the production volumes that
may be allocated to the Umusadege field or capable of delivery as described
herein should be viewed as forward looking statements. There is no assurance
that such production volumes will be made available to the Umusadege field on a
permanent or long term basis as the arrangement is dependent on a number of
factors including available volumes of oil capable of being delivered by other
members of the production group and by the owners of the pipelines. Further,
there is no assurance that the owners of the pipelines will not reduce the
export and pipeline capacity attributable to the Umusadege field without notice.
Any such reduction could have a material adverse effect upon the financial
condition and results of operations of the Company. 


In addition to the foregoing, certain factors can affect the ability of the
Company to produce or deliver oil. These can include planned maintenance
programs or unpredictable and unplanned external factors such as accidental or
deliberate damage to pipelines and other facilities upon which the Company is
reliant. When such disruptions occur, it may not be possible to predict how long
such disruptions may last or how long a production shutdown may occur. 


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.


Mart Resources (TSXV:MMT)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Mart Resources Charts.
Mart Resources (TSXV:MMT)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Mart Resources Charts.