Mart Resources, Inc.: Operations and Production Update
- Umusadege field production averaged 10,263 barrels of oil per
day ("bopd") during November 2013 based on
calendar days; average field production based on production days
was 12,801 bopd during November 2013.
- Umusadege field net deliveries into the export pipeline were
approximately 286,900 barrels of oil ("bbls") in
November 2013 before pipeline losses.
- Maintenance being performed on the export pipeline beginning
on December 6, 2013 caused a temporary shut down of Umusadege field
production from December 6, 2013 until December 24, 2013.
- Operations are underway to drill and complete a water disposal
well located at the surface site of the UMU-3 well.
CALGARY, ALBERTA--(Marketwired - Jan 2, 2014) - 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 updates on Umusadege field production for November 2013
and other operations.
November 2013
Production Update
Umusadege field production during November 2013 averaged 10,263
bopd. Umusadege field downtime during November 2013 was
approximately 6.0 days due mainly to maintenance and repairs on the
export pipeline performed by the pipeline operator, Nigerian Agip
Oil Company Limited ("NAOC"). Testing operations for the UMU-11
well also contributed to some of the downtime in November. The
average field production based on producing days was 12,801 bopd in
November 2013.
Total net crude oil deliveries into the export pipeline from the
Umusadege field for November 2013 were approximately 286,900 bbls
before pipeline losses. Pipeline and export facility losses
reported by NAOC and allocated to Mart and its co-venturers for
October 2013 were 108,375 bbls, or 33.3% of total crude oil
deliveries into the export pipeline. November 2013 pipeline and
export facility losses have not yet been reported by NAOC. Pipeline
and export facility losses have averaged 25.3% for the first ten
months of 2013.
NAOC has been unable or unwilling to provide the marginal field
companies that produce through the Umusadege export facility
("Cluster Group") with an explanation for the basis for the
pipeline and export facility losses or for the reasons for the
fluctuations in allocated pipeline losses. The Cluster Group
disputed the allocation of the losses and requested the formal
involvement of the Department of Petroleum Resources ("DPR"). As a
result of a meeting in November 2013 that included the DPR, NAOC
and representatives from the Cluster Group, a committee including
all involved and affected parties has been set up. Suspension of
the allocation of pipeline and export facility losses to the
Cluster Group has been imposed until the pipeline loss allocation
issues are resolved.
December 2012
Production Disruptions
Mart was informed of maintenance being performed on its export
pipeline, causing the pipeline operator to temporarily close the
pipeline on December 6, 2013. As a consequence, all Umusadege field
production shipped through the NAOC export pipeline was shut in
from December 6, 2013 until December 24, 2013 while NAOC's
completed maintenance operations. Shipment of production from the
Umusadege field through the NAOC pipeline resumed on December 24,
2013.
Umusadege Water
Disposal Well
A drilling rig provided by an independent third-party company is
on site and preparing for operations to drill and complete a water
disposal well. The well will be located at the surface site of the
UMU-3 well, drilled from a newly constructed cement pad. The water
disposal well is being drilled under contract by Centurion Drilling
Limited, and is expected to be completed by the end of January
2014. The water disposal well will be used to dispose of water from
the producing wells in the Umusadege field and will improve the
efficiency of managing all ongoing water production from the
field.
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.
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 there will not be
future disruptions of the NAOC 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 third party
pipeline owners, should also be viewed as forward looking
statements. Pipeline and export facilities losses are expected to
continue in the future and such losses could be material. There is
no assurance that there will not be adjustments to previously
reported pipeline losses. There is no assurance that pipeline and
export facility losses will not continue in the future. Such losses
could be material.
No assurance can be provided on the timing of completion of
the water disposal well or when the well will be available for
water disposal for the Umusadege field.
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.
Mart Resources, Inc. - London, England officeWade Cherwayko+44
207 351 7937Wade@martresources.comMart Resources, Inc. - London,
England officeDmitri Tsvetkov+44 207 351
7937dmitri.tsvetkov@martresources.comMart Resources, Inc. -
CanadaSam
Grier403-270-1841sam.grier@martresources.comwww.martresources.com
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