Calgary, Alberta – Mart Resources, Inc. (TSX-V: MMT)
“Mart” or the “Company”) and its coventurers, 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.
Source: Mart Resources Website