Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

May 03, 2011 08:00 ET

Mart Annnounces a 56% Increase in 2010 Year End Proved Reserves

CALGARY, ALBERTA--(Marketwire - May 3, 2011) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") is pleased to announce the results of independent reserve evaluations of the Company's reserves effective December 31, 2010 and the filing on SEDAR of its Statement of Reserves Data and Other Oil and Gas Information as prescribed by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

2010 Highlights:
Year-end 2010 Reserve Highlights of Mart's Interest:
  • Mart's total gross proved ("1P") oil reserves in the Umusadege field increased 56% to approximately 9.6 million barrels of oil ("bbls") compared to 6.1 million bbls at December 31, 2009;
  • Mart's total gross proved plus probable ("2P") oil reserves in the Umusadege field increased 38% to approximately 12.9 million bbls compared to 9.4 million bbls at December 31, 2009;
  • Mart's total gross proved plus probable plus possible ("3P") oil reserves in the Umusadege field increased 30% to approximately 20.1 million bbls compared to 15.5 million at December 31, 2009;
  • Mart's share of total Umusadege field sales volume in 2010 before royalties was approximately 975,000 bbls (921,000 bbls after royalties), at an average price of US$80.38 per barrel;
  • Mart's net present value before tax of future net revenue, discounted at 10%, from the 2P Umusadege field reserves established at US$536 million as at December 31, 2010;
  • Mart's total 2P reserves from the Qua Ibo field remained the same at approximately 9.7 million bbls.

The 1P, 2P and 3P reserves figures and net present value of future net revenue contained in the 2010 Highlights provided above, have been calculated in compliance with Canadian National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51- 101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH") and have been derived from the data contained in the Company's Form NI 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information dated April 30, 2011 (effective December 31, 2010) filed on SEDAR (www.sedar.com) and on Mart's website, www.martresources.com.

Wade Cherwayko, Chairman and CEO of Mart Resources, Inc., said "We are extremely pleased to announce record levels of reserves and continued strong production in 2010 which was obtained through successful development and appraisal of new reserves and successful management of existing reserves. In 2011, Mart and our co-venturers are focused on continuing to grow reserves and production through development and appraisal drilling and reservoir management in the Umusadege field."

The following table summarizes Mart's 2010 year-end gross and net after royalty reserves. Also shown in the following table, for comparative purposes, are Mart's net after royalty reserves for year-end 2009.

Summary of Oil and Gas Reserves
Using Forecast Prices and Costs
Light and Medium OilMart Gross Reserves(1)(3)
12/31/10
(mbbl)
Mart Net
Reserves
(1)(3)
12/31/10
(mbbl)
Mart Gross Reserves(2)(3)
12/31/09
(mbbl)
Reserves Category(4)UmusadegeQua Ibo(5)UmusadegeQua Ibo(5)UmusadegeQua Ibo(5)
Proved
Developed Producing2,105-1,993-1,393-
Developed Non-Producing------
Undeveloped7,527-7,070-4,781-
Total Proved9,632-9,063-6,174-
Total Probable3,3159,7452,9808,9693,2039,835
Total Proved plus Probable12,9479,74512,0438,9699,3779,835
Total Possible7,18819,9516,46118,6156,17220,232
Total Proved plus Probable plus Possible20,13529,69618,50427,58415,54830,067
Notes:
(1)The information contained herein for the Umusadege field has been derived from a reserve report dated April 19, 2011 (effective as of December 31, 2010) prepared by RPS Energy Canada Inc. ("RPS"). The information contained herein for the Qua Ibo field has been derived from a reserve report dated April 4, 2011 (effective December 31, 2010) prepared by Chapman Petroleum Engineering Ltd. ("Chapman").
(2)The information contained herein for the Umusadege field has been derived from a reserve report dated April 28, 2010 (effective as of December 31, 2009) prepared by RPS. The information contained herein for the Qua Ibo field has been derived from a reserve report dated April 21, 2010 (effective December 31, 2009) prepared by Chapman.
(3)Gross Reserves means Mart's working interest share of total field reserves after deducting reserves volumes owned by others but before deducting reserves attributable to government and third party royalties and income taxes or their equivalent. Net Reserves means Mart's working interest share of total field reserves after deducting reserves volumes owned by others and after deducting reserves attributable to government and third party royalties but before income taxes or their equivalent.
(4)All reserves definitions utilized herein are as set out in the Canadian Oil and Gas Evaluation Handbook ("COGEH").
(5)As at December 31, 2010, Mart continued to hold a participation interest in the Qua Ibo field. Mart has no near-term plans to develop the Qua Ibo field and is in discussions with the Nigerian field owner regarding a farm-out, sale, transfer or assignment of its participation interest in the Qua Ibo field.

ABOUT MART RESOURCES:

Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proved petroleum properties in Nigeria, West Africa. The Company is currently producing and developing the Umusadege field along with Midwestern Oil and Gas Co. Plc (the Operator of the field) and SunTrust Oil Ltd. Mart also owns two land drilling rigs, has strong local relationships and experience and is evaluating additional proved undeveloped opportunities in Nigeria.

Additional information regarding Mart Resources, Inc. is available on the company's website at www.martresources.com.

Information Regarding Reserves and Net Present Value of Future Net Revenues

All information contained in this press release regarding reserves and the net present value of future net revenue has been derived from the Company's Form 51-101 F1-Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2010 ("Statement of Reserves Data") which report, along with the Form 51-101F2-Report on Reserves Data and Form 51-101F3-Report of Management and Directors on Reserves Data and Other Information are available for review at www.sedar.com and on the Company's website at www.martresources.com.

Forward Looking Statements

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, information regarding the reserve estimates attributable to Mart's oil and gas properties should be considered as forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Readers are referred to the heading "Forward Looking Statements" in the Company's Statement of Reserves Data for a more detailed discussion of risks associated with forward looking statements. In addition, past production performance, sales volumes and prices from Mart's Umusadege field are not necessarily indicative of future performance, sales volumes and prices.

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.

Contact Information