Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

November 29, 2010 19:27 ET

Mart Resources Announces Third Quarter 2010 Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Corporation") is pleased to announce its third quarter financial and operating results (all amounts shown in Canadian dollars unless noted):

HIGHLIGHTS - NINE MONTH PERIOD ENDED SEPTEMBER 30, 2010

- Total Umusadege field oil production for nine months ended September 30, 2010 of 901,429 barrels of oil ("bbls") compared to 848,461 bbls for the nine months ended September 30, 2009.

- Mart's share of Umusadege field oil production for nine months ended September 30, 2010 was 573,309 bbls compared to 827,249 bbls for the nine months ended September 30, 2009. This reflects the decrease in cost oil recovery from 97.5% to 63.6% during the period.

- Total crude oil revenues of $47.5 million for the nine months ended September 30, 2010 compared to $53.6 million for the nine months ended September 30, 2009.

- Cash flow from operations of $15.7 million for the nine months ended September 30, 2010 compared to $16.5 million for the nine months ended September 30, 2009.

- Income from operations for the nine months ended September 30, 2010 of $13.7 million, with net and comprehensive loss after taxes of $1.1 million, compared to a loss of $1.7 million for the nine months ended September 30, 2009.

- Total liabilities (including $5.0 million of bank debt) of $32.4 million at September 30,, 2010, compared to total liabilities of $38.0 million at December 31, 2009 and $44.6 million at September 30, 2009.

HIGHLIGHTS - THREE MONTH PERIOD ENDED SEPTEMBER 30, 2010

- Total Umusadege field oil production for three months ended September 30, 2010 of 302,638 bbls compared to 352,811 bbls for the three months ended September 30, 2009.

- Mart's share of Umusadege field oil production for three months ended September 30, 2010 was 273,051 bbls compared to 343,991 bbls for the three months ended September 30, 2009. This reflects the decrease in cost oil recovery from 97.5% to 58.9% during the period.

- Total crude oil revenues of $13.8 million for the three months ended September 30, 2010 compared to $23.7 million for the three months ended September 30, 2009.

- Cash flow from operations of $3.9 million for the three months ended September 30, 2010 compared to $13.6 million for the three months ended September 30, 2009.

- Income from operations for the three months ended September 30, 2010 of $1.2 million, with net and comprehensive loss after taxes of $3.6 million, compared to net income and comprehensive income of $0.5 million for the three months ended September 30, 2009.

- Average Umusadege field oil production for three months ended September 30, 2010 of 3,886 barrels of oil per day ("bopd") compared to 4,097 bopd for the three months ended September 30, 2009.

FINANCIAL AND OPERATING RESULTS

The following table provides a summary of Mart's selected financial and operating results for the three and nine months ended September 30, 2010 and September 30, 2009. Unaudited interim financial statements with Management's Discussion and Analysis ("MD&A") are available on the Company's website at www.martresources.com and will also be available on the SEDAR website at www.sedar.com.



---------------------------------------------------------
3 months 3 months 9 months 9 months
ended ended ended ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
Financial (CDN$) 2010 2009 2010 2009
---------------------------------------------------------

Crude oil revenue
after royalties $ 13,831,361 $ 23,670,890 $ 47,497,745 $ 53,614,621

Funds flow from
operations (1) $ 11,502,245 $ 15,503,212 $ 41,558,418 $ 36,580,539

Funds flow from
operations per
share
- basic $ 0.034 $ 0.046 $ 0.124 $ 0.109
- diluted $ 0.034 $ 0.046 $ 0.121 $ 0.109

Income (loss) from
operations $ 1,162,639 $ 9,532,141 $ 13,691,296 $ 7,342,552
per share
- basic $ 0.003 $ 0.028 $ 0.041 $ 0.022
per share
- diluted $ 0.003 $ 0.028 $ 0.040 $ 0.022

Net earnings (loss) $ (3,605,471) $ 489,540 $ (1,133,318) $ (1,700,049)
per share
- basic $ (0.011) $ 0.001 $ (0.003) $ (0.005)
per share
- diluted $ (0.011) $ 0.001 $ (0.003) $ (0.005)

Total assets $ 76,708,135 $113,157,389 $ 76,708,135 $113,157,389

Net debt (1) $ 14,807,279 $ 39,655,738 $ 14,807,279 $ 39,655,738

Shares outstanding
- end of period
- basic 335,548,201 335,548,201 335,548,201 335,548,201
- diluted 342,351,534 335,548,201 342,351,534 335,548,201
---------------------------------------------------------


Note:

(1) Indicates non-GAAP measures. Non-GAAP measures are informative measures
commonly used in the oil and gas industry. Such measures do not conform to
generally accepted accounting principles and may not be comparable to those
reported by other companies nor should they be viewed as an alternative to
other measures of financial performance calculated in accordance with GAAP.
For the purposes of this table, the Corporation defines "Funds flow from
operations" as net crude oil sales less production costs, and defines "Net
debt" as the total of all bank debt and accounts payable.


OPERATIONS REVIEW

Drilling and Testing

The UMU-6 well reached a final total drilling depth of 8,750 feet on November 6, 2010. Open hole wire line logs have been run with results indicating a total of 18 hydrocarbon-bearing sands. The logs also indicate a cumulative gross hydrocarbon pay of approximately 420 feet in the UMU-6 well from all sands.

All of the UMU-6 well's primary objectives, including the XIII, XIV, XV and XVI sands were hydrocarbon bearing with preliminary results indicating gross oil pay of 40 feet, 24 feet, 6 feet and 18 feet from these sands respectively. A deeper XVII sand was also encountered with initial results indicating 8 feet of gross oil pay. The XIII, XIV, XV, XVI and XVII sands were not assigned reserves in the Company's most recent NI 51-101 reserve report. The UMU-6 well also encountered hydrocarbons in the XI and XIIc sands with preliminary results indicating gross oil pay of 14 feet and 18 feet respectively. The previous Umusadege wells did not contain material hydrocarbons in these sands.

Fluid samples and side wall cores were obtained, 9 5/8 inch production casing has been run and four sands have been perforated. A dual tubing completion has been run consisting of 2 7/8 and 3 1/2 inch tubing strings which will allow for each of the four sands to be tested and produced individually, or simultaneously by co-mingling. The installation of production testing equipment is nearing completion with testing to commence on the first of four zones. Results will be announced as each zone is tested.

The current UMU-6 site includes a three well drilling pad which will facilitate two more wells being drilled from this location. It is anticipated that the next well, UMU-7, will commence drilling operations after production testing of the UMU-6 well is completed.

Production Overview

Gross production from the Umusadege field for three months ended September 30, 2010 was 302,638 barrels ("bbl") of oil compared to the 352,811 bbls produced in the three months ended September 30, 2009 and 273,051 bbls produced in the three months ended June 30, 2010. Based on actual production days, average production was 3,886 bopd in Q310 compared to 4,097 bopd in Q309 and 3,682 bopd in Q210. During Q310 the Umusadege wells were shut-in for 12.5 days due to disruption of the third party owned and operated export pipeline. The Umusadege field has experienced additional shut downs during the months of October and November.

CHAIRMAN'S COMMENT

Wade Cherwayko, Chairman of Mart Resources, Inc. said, "we are encouraged by the initial data from the UMU-6 drilling campaign. The additional hydrocarbon bearing sands discovered in the Umu-6 well confirms the potential of the Umusadege field. We look forward to the production test results, which will allow us to evaluate a development plan to maximize the field's production and reserve potential."

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 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 proven undeveloped opportunities in Nigeria.

Additional information regarding Mart Resources, Inc. is available 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, statements concerning the timing of the testing of the UMU-6 well, the future success of such testing operations, the ability of the Company to successfully complete and commercially produce, transport and sell oil from the UMU 6 well (or any one or more of the hydrocarbon sands identified by the UMU 6 well, the ability of the Company to successfully drill other wells on the Umusadege field and the ability to of the Company to fund future drilling operations should be viewed as forward-looking statements.

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.

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