Mart Resources, Inc.: Operations and Production Update
- Umusadege field production averaged 5,049 barrels of oil per
day ("bopd") during December 2013 based on
calendar days; average field production based on production days
was 12,185 bopd during December 2013.
- Umusadege field net deliveries into the export pipeline were
approximately 145,800 barrels of oil ("bbls") in
December 2013 before pipeline losses.
- Maintenance performed on the export pipeline from December 6,
2013 until December 24, 2013 caused a temporary shut down of
Umusadege field production and downtime during December 2013
totaled approximately 18 days.
- Construction of the Umugini pipeline restarted in December
2013. It is expected that pipeline construction will be completed
in the first half of 2014.
- Initial flow testing of the XIX sand for the UMU-10 well has
resulted in a flow rate of 2,760 barrels of oil per day
(bopd") of 48.6 API oil.
CALGARY, ALBERTA--(Marketwired - Jan 20, 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 December 2013
and other operations.
December 2013
Production Update
Umusadege field production during December 2013 averaged 5,049
bopd. Umusadege field downtime during December 2013 was
approximately 18.0 days due mainly to maintenance and repairs on
the export pipeline performed by the pipeline operator, Nigerian
Agip Oil Company Limited ("NAOC"). The average field production
based on producing days was 12,185 bopd in December 2013.
Total net crude oil deliveries into the export pipeline from the
Umusadege field for December 2013 were approximately 145,800 bbls
before pipeline losses. Pipeline and export facility losses
reported by NAOC and allocated to Mart and its co-venturers for
November 2013 were 80,563 bbls, or 28.1% of total crude oil
deliveries into the export pipeline. December 2013 pipeline and
export facility losses have not yet been reported by NAOC. Pipeline
and export facility losses have averaged 25.6% for the first eleven
months of 2013.
As previously announced, 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, and it is expected that the
suspension of allocation of losses in reports provided by NAOC will
begin for December 2013.
December 2013
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 completed
maintenance operations. Shipment of production from the Umusadege
field through the NAOC pipeline resumed on December 24, 2013.
Umugini Pipeline
Update
Negotiations have concluded with the local communities for right
of way for the last five kilometres of the first section of the
Umugini pipeline. The pipeline contractor re-mobilized and
restarted construction operations in December 2013. Major road
crossing boring has been completed on the remaining five
kilometres, and it is expected that pipeline construction will be
completed in the first half of 2014.
UMU-10 Well Test
Update
Initial flow testing of the XIX sand for the UMU-10 well has
resulted in a flow rate of 2,760 bopd of 48.6 API oil on a 24/64
inch choke setting with a flowing tubing head pressure of 1,250 psi
and basic sediment and water of 0%. Extended testing operations on
the XIX, XXb, and XXI sands completed in the long string are
ongoing.
Mart Presenting at
Africa Oil & Gas Summit 2014 in London, England
Dmitri Tsvetkov, CFO of Mart, will be a presenter at the Africa
Oil & Gas Summit in London, England on January 27 and 28, 2014.
Links containing the locations and details of the conferences are
available on Mart's website under Investor Centre / Events Calendar
- www.martresources.com.
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.
Additionally, there is no assurance that the Company will be
able to successfully test the UMU-10 well 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.
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 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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