CALGARY, ALBERTA — (Marketwire) — 12/12/12 — 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 update on Umusadege field production and drilling operations.
November 2012 Production Disruptions
Due to an ongoing shutdown of the export pipeline that started on October 30, 2012, there was no production from the Umusadege field in November and December 2012. At the beginning of November 2012 there was a shipment of crude oil produced in October 2012 of 320,000 barrels of oil (“bbls”). Nigerian Agip Oil Company (“AGIP”), the pipeline operator, has advised that while repairs to the export pipeline have commenced, the nature of the damage has prevented a temporary repair and that a partial replacement of the line is required. The damaged pipeline is located in a river crossing. AGIP advises that it is working diligently to repair the export pipeline to enable the restoration of normal pipeline operations at the earliest possible date.
The Brass River Export Terminal, where oil production from the Umusadege field is shipped, continues to experience loading delays and AGIP has extended its previous declaration of force majeure on loadings at the Brass River Export Terminal due to flooding.
As a consequence of the foregoing, all Umusadege field production shipped through the AGIP export pipeline continues to be shut-in pending AGIP–s repair of the export pipeline and the reopening of the Brass River Export Terminal. Mart and its co-venturers will continue to monitor the situation.
Pipeline and export facility losses for October 2012 as reported by AGIP were 56,874 bbls or approximately 17.7% of total crude deliveries (losses for September 2012 as reported by the pipeline operator were 40,018 bbls or approximately 11.6% of total crude deliveries). Pipeline and export facility losses as reported by AGIP from the beginning of the year to end of October 2012 are approximately 13.6% of total crude deliveries for that period.
UMU-10 Well Update
As previously announced, the UMU-10 well encountered 479 foot gross hydrocarbon pay in 20 sands. Six of these sands, XVIIa & XVIIb (commingled), XVIIIa, XIX, XXb, and XXI have been perforated. Sands will be tested, and completed for production. Any two of these zones can be produced simultaneously using dual tubing string sliding sleeve completion technology. Operations to prepare to flow test the six targeted sands in the UMU-10 well have been progressing and is approximately 80% completed. The long string (3 1/2 inch) completion has been installed, and the short string (2 7/8 inch) installation is currently underway. The sands completed in UMU-10 will access 161 feet of the total 479 feet of gross pay in the well.
Shell Export Pipeline
Mart and its co-venturers are continuing their negotiations with an affiliate of Royal Dutch Shell plc. (“Shell”) to complete a crude handling agreement that will enable plans to move forward to provide a second independent export pipeline for Umusadege field production. Mart and its co-venturers will then gain access to Shell–s export facilities and a 50-kilometer pipeline will be constructed. The pipes have been manufactured and loaded on a ship heading for Nigeria and expected to arrive in the third week of December 2012.
Additional information regarding Mart is available on the Company–s website at and under the Company–s profile on SEDAR at .
INVESTOR RELATIONS:
Investors are also welcome to contact one of the following investor relations specialists for all corporate updates and investor inquiries:
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;
In addition, there is no assurance that the drilling program for the UMU-10 well will be successful or will successfully appraise 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.
No assurance can be provided on the timing of repairs to the AGIP export pipeline, when the force majeure event on the Brass River Export Terminal will cease or when production from the Umusadege field will re-commence.
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.
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.
Contacts:
Mart Resources, Inc.
London, England Office
Wade Cherwayko / Dmitri Tsvetkov
+44 207 351 7937
Investor Relations
Toll Free 1-888-875-7485