MMT Mart Resources

Mart Resources, Inc. (TSX VENTURE:MMT) 



--  Testing of the UMU-10 well has been successfully completed on three
    sands and oil has flowed to surface and testing has been concluded. The
    Company will release updated results once the review and evaluation of
    the test data is completed. 
--  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. 
--  The Operator plans to return to the UMU-10 well after drilling the UMU-
    11 well to carry out testing operations on the two remaining oil zones. 
--  Umusadege field production averaged 11,459 barrels of oil per day
    ("bopd") during January 2013; average field production based on
    production days was 11,841 bopd during January 2013.  
--  Umusadege field net deliveries into the export pipeline were
    approximately 355,000 barrels of oil ("bbls") in January 2013 before
    pipeline losses.  
--  Umusadege field production and deliveries into the export pipeline were
    shut down during November and for 24 days in December 2012. Umusadege
    field production averaged 2,705 bopd during December 2012; average field
    production based on production days was 11,980 bopd during December
    2012. Umusadege field net deliveries into the export pipeline were
    approximately 89,000 bbls in December 2012 before pipeline losses. 



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 pleased to announce additional
initial flow rate test results for the UMU-10 well, updates on Umusadege field
production, and an update on the progress to tie into the Shell 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 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. 


Flow rate tests during initial testing operations have now been completed on the
XVIIa&b (commingled) sands and the XVIIIa sand and oil has flowed to surface.
The results of these tests will be released once the review and evaluation of
the test data is completed.


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 1260 psi. BS&W was 5% with a gas/oil ratio of
approximately 588 standard cubic feet per barrel. 


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. The Operator plans to
return to the UMU-10 well after drilling the UMU-11 well to carry out the
remaining two testing operations on sands XXb and XIX in the long string.
Multirate flow testing will then be performed on all sands completed in the long
string: XIX, XXb, and XXI. 


December 2012 and January 2013 Production Update

Umusadege field production during December 2012 averaged 2,705 bopd. Umusadege
field downtime during December 2012 totaled 24 days. The average field
production based on producing days was 11,980 bopd in December 2012.


Total crude oil deliveries into the export pipeline from the Umusadege field for
December 2012 were approximately 89,000 bbls before pipeline losses. Pipeline
and export facility losses for December 2012 as reported to Mart by the pipeline
operator were 14,919 bbls or approximately 16.7% of total crude deliveries.


Umusadege field production during January 2013 averaged 11,459 bopd. Umusadege
field downtime during January 2013 totaled 1 day. The average field production
based on producing days was 11,841 bopd in January 2013.


Total crude oil deliveries into the export pipeline from the Umusadege field for
January 2013 were approximately 367,000 bbls before pipeline losses. Pipeline
and export facility losses for January 2013 have not yet been reported to Mart
by the pipeline operator.


In December 2012, 600,000 bbls were lifted from the export facility on behalf of
Mart and its co-venturers. Payment for these sales of oil were received in
January and February 2013, and Mart and its co-venturers owe the exporter
approximately 300,000 bbls as of the end of January in connection with the
December 2012 liftings.


Production from the Umusadege field has been down for approximately 10 days in
February 2013 due to a maintenance shutdown by the pipeline operator.


Shell Export Pipeline

Mart and its co-venturers are proceeding with plans to provide a second
independent export pipeline for Umusadege field production. The pipe arrived in
Nigeria in late December and has been trucked to site. Right-of-way agreements
required for the construction of the pipeline have been negotiated and
completed, and clearing of the pipeline right-of-way is underway and ongoing. It
is anticipated that ditching operations will begin shortly, and the pipeline
construction contractor will begin working from two locations: one near the
Umusadege field and one near the midpoint between Umusadege and the Shell Export
station. Other pipeline and facility design and specification requirements are
being completed and necessary equipment is being procured and will be delivered
concurrent with the pipeline construction.


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.


INVESTOR RELATIONS:

Investors are also welcome to contact one of the following investor relations
specialists for all corporate updates and investor inquiries:




FronTier Consulting Ltd.                                                    
Mart toll free # 1-888-875-7485                                             
Attn:  Sam Grier                                                            
       Timea Carlsen                                                        
Email: inquiries@martresources.com                                          



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 herein; 


There is no assurance that the testing program for the UMU-10 well will be
successful or will or will result in the successful testing of 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. There is no
assurance that the drilling program for the UMU-11 well will be successful or
will successfully appraise the target sands of the well. Statements (express or
implied) regarding the ability of the Company to successfully drill, complete
and commercially produce and sell oil from the UMU-11 well should be viewed as
forward-looking statements. 


Negotiations regarding access to, and construction activities relating to, the
Shell Export Pipeline are ongoing and there is no assurance that the Shell
Export Pipeline will be completed or if completed, that the Company will get
access to the Shell Export Pipeline, or if access is obtained, there is no
assurance regarding the timing of commencement of deliveries of oil to the
pipeline or the future volumes that will be available to the Company.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Mart Resources, Inc. - London, England Office
Wade Cherwayko / Dmitri Tsvetkov
+44 207 351 7937
Wade@martresources.com / dmitri.tsvetkov@martresources.com


Mart Resources, Inc.
Investor Relations
Toll Free 1-888-875-7485
www.martresources.com

Mart Resources (TSXV:MMT)
Historical Stock Chart
From Jun 2024 to Jul 2024

Mart Resources (TSXV:MMT)
Historical Stock Chart
From Jul 2023 to Jul 2024