Mart Resources, Inc.

Mart Resources, Inc.

January 27, 2010 08:30 ET

Mart Appoints New Directors at Annual General Meeting and Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 27, 2010) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Corporation") is pleased to announce the results of its Annual and Special General Meeting of Shareholders (the "Meeting") held on January 26, 2010 in Calgary, Alberta and to provide an update regarding its ongoing Nigerian operations. At the Meeting, the shareholders of the Corporation approved all resolutions put before them by management, including the election of directors, appointment of the auditor, the renewal of the Corporation's stock option plan, and the adoption of a shareholder rights plan.

Election of the Board of Directors

At the Meeting, Mart's shareholders re-elected Wade G. Cherwayko and Leroy Wolbaum as directors of the Corporation. In addition, the shareholders elected Dallas L. Droppo, John R. Gorman and Derrick R. Armstrong to serve as directors of the Corporation until Mart's next annual general meeting. A brief biography of each of the newly elected directors is as follows:

John R. Gorman

Mr. Gorman has over thirty years of experience in banking and natural resource exploration. Commencing with a commercial banking career in oil and gas reserve and asset-based lending, followed by a turnaround/restructuring management role, Mr. Gorman then served eleven years as CFO and director of a private oil and gas company with extensive holdings in offshore West Africa. Mr. Gorman presently has an energy consulting practice in New York City, serves as Senior Energy Advisor to Odin Advisors LLC, a boutique M&A group based in Manhattan, and is the financial consultant to New York-based Taia, LLC and its affiliate Taia Peace Foundation, both with primary operations in Sierra Leone. 

Derrick R. Armstrong

Mr. Armstrong has practiced corporate and securities law in Calgary, Alberta continuously since 1980. He is currently senior counsel and Calgary Regional Leader of the Securities and Capital Markets Group of Borden Ladner Gervais LLP, a national law firm. Prior to that he founded and was the senior and managing partner of Armstrong Perkins Hudson LLP. He is currently a director of CYGAM Energy Inc., a public company listed on the TSX Venture Exchange with properties in Tunisia and Italy and he was a director of Centurion Energy International Inc. from 1997 to 2006 which operated in Tunisia and Egypt prior to it being acquired by a Dubai Stock Exchange listed company. He has considerable experience advising public companies active in North Africa. Mr. Armstrong also sits on the boards of two private oil and gas companies and sits on the advisory board of the TSX Venture Exchange.

Dallas L. Droppo, Q.C.

Mr. Droppo is a securities, energy and commercial lawyer with the national law firm of Blake, Cassels & Graydon, LLP. He has acted for a number of Canadian resource and service companies that have expanded internationally and for foreign corporations acquiring or establishing businesses in Canada. He has considerable experience in all aspects of securities-related transactions including corporate governance and other securities law related matters. Prior to practicing law, Mr. Droppo was a geologist.

The Corporation would also like to take this opportunity to thank each of Bill Cherwayko, Bob Leslie, Walter Wakula and Michael Nobbs for their contributions to the Corporation's development during their tenure as members of the board. The board and management recognize Messrs. Cherwayko, Leslie, Wakula and Nobbs for their support, significant time commitment, dedication and service, and wish them all much success in their future endeavors.

Operations Update

Mart and its partners, Midwestern Oil & Gas Company PLC (Operator) and Suntrust Oil Company Nigeria Limited, are pleased to announce that the majority of the rental production equipment in use at the Umusadege oil field has been replaced with permanent facilities. The main equipment replaced includes production separation facilities, manifold, and interconnecting piping. The installation of the permanent facilities will result in a net reduction of direct field operating costs of approximately $2.60/barrel based upon average daily production rates for January 2010.

Average daily gross production for January 2010 was 3,935 barrels of oil per day ("bopd") from the UMU-1 and UMU-5 wells. Of the total production for this period, the UMU-1 well (commingled XIIa and XIIb zones) contributed an average of 1,710 bopd and UMU-5 well contributed an average of 2,225 bopd. 

With stable production and strong oil prices over the past several months, Mart has been able to significantly reduce trade payables and continue to service its bank debt in a current and timely manner. Due to continuing strong cash flows, Mart and its partners are now in a position to continue with development activities on the Umusadege field in the very near future.

Mart and its partners are currently finalizing development plans to increase production and reserves from the Umusadege field in 2010. Planning is underway for development drilling that is anticipated to commence in early Q2/10. It is also anticipated that the two existing producing wells will be re-completed in Q2/10 and Q3/10.

About Mart Resources:

Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proven petroleum properties in Africa. The Company owns two drilling rigs, has strong local relationships and has formed joint venture partnerships with indigenous operators in Nigeria.

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

All references to production levels contained in this press release are to total field production rates. A detailed description of Mart's ownership interest in the Umusadege Field in contained in the Company's Management's Discussion and Analysis filed on SEDAR at

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. 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. In particular, statements concerning the UMU-5 well and Umu-1 wells and the ongoing development of the Umusadege and Qua Ibo fields and events or projections referenced or implied herein should be viewed as forward-looking statements. 

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". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and production development; political, social and other risks inherent in carrying on business in a foreign jurisdiction, the effects of a recessionary economy and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such 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.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation 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.

This news release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intended" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified by this cautionary statement.


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